Customer Reviews

Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future

5 star:		(90)
4 star:		(11)
3 star:		(5)
2 star:		(2)
1 star:		(1)

 

 

Mike has made a compelling case that sooner, rather than later, the US Dollar is going to tank and everyone will be running to gold and silver to protect their wealth. The good news is that NOW is the time to get in on both silver and gold- before the HERD of people start rushing in. Mike states that this opportunity coming could be the best investment in history.
The book starts off with the history of other empires that have used a fiat currency and how they have failed 100% of the time. The United States has been on this path since Aug, 1971 when President Nixon took us off the gold standard. There are a lot of interesting facts in this book but not too many to bore the reader. He explains that gold and silver will revalue themselves periodically in relation to the amount of paper currency printed. For example, the M3 money supply (total printed money in circulation) was ~$1.7 billion in January, 1980 when gold hit $850 an ounce. Today, the M3 is estimated at $14 trillion, a 7.7 times increase in the amount of currency. With that said, gold, when it adjusts, should be $6,118.00 an ounce...
Mike goes into today's current economic climate, then predictions for "tomorrow". He concludes with the final section "How to Invest in Precious Metals".
I recommend this book if you are unsure about silver and gold relating to investing. There's so much documentation and research behind it.

I've never read an investment book with this much passion put into it!!!

I listened to this as an audiobook because I am considering investing in precious metals and wanted to learn how to do it. This provides a lot of helpful "how to" information (including on a lot of the stuff that I had questions about, like where and how to store your precious metals once you have them) and some excellent advice on common pitfalls (example: those magazine offers that seem to show up all the time are usually a bad deal).

The "why" part of the book was a lot more mixed. While a lot of it is generally sound, some of it is really misleading. For example, in places he seems to imply that gold and silver always go up (they don't) and carry virtually no risk (actually, they can be really volatile).

There are a few significant points he doesn't cover. (As a quick caveat, the audiobook is abridged, so maybe a few of the things omitted in the audiobook were addressed in the full book; also, I will sometimes use "inflation" to mean "an increase in general prices" even though I know this isn't strictly accurate).

One of the most glaring omissions is a treatment of the actual price history of gold and silver. Specifically, if gold and silver are always such a reliable hedge against inflation, why is the correlation between inflation and the price of gold so unpredictable? Yeah, yeah, I've heard all the arguments about how the CPI is rigged (in fact, the author argues that in this book), and it probably is. But that still doesn't solve the problem. Consider:
1. Between 1980 and 2001, gold fell in price from $850 an ounce to $256 an ounce even though the CPI doubled; in order to maintain that gold had any correlation to this inflation, one would have to say that the government claimed we had substantial inflation while we were actually experiencing massive deflation.

Anyone who thinks we experienced that kind of deflation during almost all of Greenspan's tenure should have their head examined. A quick look at money supply data shows that the money supply did indeed steadily increase throughout this entire period, as it has almost every year since the Fed was created.
2. Gold went from $105 in 1976 to $850 in 1980. CPI was up by 28%.
3. Gold went from $256 in 2001 to $1001 in March 2008. CPI was up by about 20%.
As these facts show, even if CPI is rigged, there still isn't any reliable correlation between inflation and gold.

At this point it is worth asking exactly how the CPI is supposed to be rigged - does it overestimate inflation or underestimate it? In order to claim an infallible correlation between gold and inflation, one would have to claim that the CPI grossly understated inflation between 1976 and 1980, said there was inflation when there was actually significant deflation between 1980 and 2001, and then went back to grossly understating inflation again between 2001 and 2008.

Most people who claim that the CPI is rigged claim that it understates the actual amount of inflation (many claim that the "real" number is as much as two times higher), but if that's true it only makes the period between 1980 and 2001 an even greater exception to the supposedly infallible correlation between gold and inflation as this would mean that the nominal price of gold fell by more than two thirds while the rest of prices quadrupled.

The reason I spend so much time on this point is that it's such a serious flaw in his argument. Anyone who attempts to predict where the price of gold is headed ought to explain the price history; although he does admit that gold can be overvalued and undervalued in his treatment of cycles, I didn't find any systematic treatment of gold's actual price history. Furthermore, as I mentioned earlier, people reading this book can at times get the impression that precious metals can't go down or that they're always good proxies for inflation when in reality neither is the case.

Another serious error in the book is his claim that gold and silver are good investments during deflation. If gold reliably goes up in price during a period of inflation, it would go down in price during a period of deflation for exactly the same reason. Thus, either gold isn't a good hedge against inflation or it's a bad investment during a period of deflation; in either case, the book is wrong.

With that said, while I believe this is a serious omission that reduces the strength of his argument, I don't think this means we have to throw out his entire case for buying gold and silver. I believe you can still make a good case for buying gold and silver.

One final error: his claims that the price of gold is being manipulated by central banks and the derivatives market is essentially creating a "phantom supply" of precious metals (in other words, more gold and silver are sold on the derivatives market than actually exist). I'm not sure if he's correct on this point (I'm still researching that to see if it's true); however, if he is correct, it would seem to undermine a substantial part of his argument. If central banks have substantially manipulated the price of gold and silver in the past, they can continue to do so in the future, especially given that he argues that they have already engaged in price manipulation for a long time. So, why does this refute his argument? If central banks can dramatically manipulate the price of precious metals whenever they feel like it, there is never any guarantee that the price of precious metals has anything to do with its actual fundamentals. Thus, good fundamentals alone could never guarantee a good ROI - in other words, you could never know if gold or silver were going to be good investments because you could never know how central banks were going to manipulate the price.

In spite of several very serious errors and omissions, this book is worthwhile reading overall, especially in the "how" part, but don't uncritically accept all his claims.

I became interested in precious metals and economics about a year ago and have been reading and watching everything I could get my hands on. After a while you begin to see that there is a lot of common ground shared between most of the material out there and being new to the "Rich Dad" stuff I wasn't sure what to expect from Mike Maloney (though I did like the series of interviews he did with industry analysis professionals). I was very impressed with the amount of original research and information I found in this book - it covers all the bases from the historical trends and cycles, to the fundamentals of economics and everything in between. Of all the books I've read on the subject this year (about 10 so far) this is by far the best overall coverage and was the most fun to read.

If you don't know why gold and silver are a good investment "Guide to Investing in Gold and Silver" will tell you why they are. Simple to read full of facts about money and currency and history of money and currency. It breaks down complicated economics into fun easy reading. This book gives you the do's and don'ts of investing in precious metals and a clear understanding of why now is the time to invest in gold and silver. If you want to protect your wealth from inflation or build your wealth through gold and silver this book is a must read. A great addition to the Rich Dad library of books!

I was already convinced that owning gold and silver was a good investment but had heard from an internet source that this was a good guide to investing in metals, and saw that (at the time) ALL the reviews here were high praise.

The book is called "Guide to Investing in Gold and Silver" but Maloney spends the first 154 pages of a 202 page book making a historical case for the strength of gold and silver vs currency and other investments. (Title page - pg 155: Part 4 - How to invest in precious metals)

The final Chapter, 7 pages, returns to the history of metals investing and the opportunities it gives in todays economic climate.

In the end, there are just 40 pages of actual investing advice (what to buy, where, pit-falls etc).

Maloney's research is exhausting and initially I found it interesting but at the end of each chapter I'd turn the page hoping to finally get to the "guide to investing", only to find yet another chapter of history, charts and graphs.

In my opinion, this is a book only for those not already convinced about buying metals...or for those who are but also really want a detailed history to go with their guide.

Wait a second. Don't read this book now. First buy all the gold coins or bullion that you can because there isn't any time to waste. Then, read the book and you'll understand why your purchase was so urgent and so wise.

As I write this, the spot price for gold is pushing $900 per ounce. I got into gold about $20 ago. Although I already understood a lot of the things this book explains, I had always put the purchase of gold on the back burner because I never really connected all the dots. However, when the current credit crisis happened and the government began talking about a Trillion dollar bailout (of course, it will cost at least 3 times that - it always does), I knew that the unavoidable result would be a devaluation of the dollar. Therefore, in order to preserve the value of my dollars, I transferred them into gold. I THEN read Michael Maloney's book.

If I had been able to see the big picture as I now understand it after reading his book, I would have bought gold years ago and been way ahead of the game at this point. However, I don't regret my delayed entry into gold because I now UNDERSTAND that when it comes to the devaluation of our currency and the resulting increase in the price of gold, "we ain't seen nothing yet". So, even if the price of gold is $1,500 or $2,000 per ounce by the time that you read this, buy it anyway because that price is still only the beginning. I am not saying that you are going to profit by owning gold (although you probably will), I am saying this because your dollars MUST continue to decrease in value. If this sounds confusing, don't worry. After you read the book you will completely understand what I am saying.

One last thing. This is NOT one of those doomsday books. It is an intelligent, logical presentation of facts which gives YOU the knowledge and tools to come to your own conclusions EVEN when the financial forces that drive the economy change and require a different investment strategy. Once you understand this, you will not need someone else to tell you what to do, you will be able to decide for yourself the best course of action because you will understand what CAUSES things to happen in the economy. It has never been so true that "knowledge is power".

This is a really good basic book on buying gold and silver for your future. The author covers historical precedents, possible scenarios, how to prepare, and even a little bit about an exit strategy. I don't agree with the author about everything, notably, he doesn't like collector coins, while I believe, with proper research and judicial buying, they can be an excellent investment - as has been the case for me. Also, the author thinks you should limit your buying to US Gold and Silver eagles. I also like Krugerrands, Maple Leafs, and Philharmonics, and for silver, I also like 10 ounce and 100 ounce bars - they sell at a much smaller premium than Silver Eagles, and they make it very easy to figure out your total silver holdings. Also, the exit strategy could be expanded upon. All in all, one of the best investment guides for precious metals out there, and I have read 20-30 of them. Highly recommended reading if you are even remotely considering buying some gold and silver.

Michael Maloney gives a very insightful historical recount of gold and silver money. He explains how these metals have always prevailed over fiat or paper currencies.

Today, not a currency in the world is backed by gold or silver.
Understanding and acting on this fact will be one of the greatest financial discoveries you make in your lifetime.

This is best precious metals book out there. I have read numerous books on the coming collapse of our Dollar and fiat currencies world over. Mike explains the best ways to invest in the precious metals market. It is both fun to read (not doomey and gloomey) and educational (not difficult to understand).

Get it, Read it, and Act on it soon as the early bird will get the best silver and gold prices ;-)

This is a very well written book explaining both the do's and don'ts of investing in precious metals. Lots of historical context without getting too deep or boring, about why every fiat currency that's ever been has failed, and that includes our own dollar heading for bankruptcy as well. Far from being any kind of kook or conspiracy theorist, Michael Maloney of GoldSilver dot com fame, pens a convincing story about why all things financial are cyclical and why at this current juncture, investing in gold and silver is the right and potentially profitable thing to do. Inexpensive in cost but maybe one of the more valuable books on gold and silver investing you'll read lately, it's an enjoyable, easy read that you can share with family and friends. Even if they don't agree on the role of precious metals in our upcoming economic trials and tribulations, I'll bet they'd still say they enjoyed this book. I know I did...

The book is very informative.
However the author sells Gold and Silver from his website. Thus there is a conflict of interest. He gains from telling you to buy the stuff. It still may be and seems like good advice but do your research.