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He Knew Then What We Know Now

Way back in 2008, Michael Maloney, in his book, Guide to Investing in Gold and Silver, described the economic scenario he thought most likely to come to pass. Here’s an update: i
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Very true! Makes a chnage to see someone spell it out like that. :)

What would be the likely/possible effect of this 'monetary' deflation, if not asset deflation?

Monetary deflation means purchasing power rises, but the burden of debt rises more. It's leverage cutting on the way down. In a society that is massively indebted, a deflation becomes very painful—sometimes catastrophic—like the Great Depression.

I have never seen an educational video that is as good as this one. This is clearly outstanding. Great work. Especially having that bubble grow bigger and eventually pop. Just awesome I love it.

Scenario: a threat of deflatsion, followed by helicopter drop and big inflatsion which is follow by real deflation which is followed by hyperinflation.

What about silvers performance in real deflation?
(silver is mainly used as industrial metal) industrial demand falls in deflation, does this mean that silvers price will fall?

or how has silver performed in deflation?

Thank you,

great video
how on earth are u getting these amazing video and internet productions??
very high quality, better than the unspecified competition

thanks perry

Thank you Perry,

We have a great video team who can put together some amazing videos.

nicholas - WealthCycles Admin

The talk has been that a number of countries, including China and Russia, have suggested replacing the dollar as the world's reserve currency, with a basket of currencies. I'm not sure that would work either.

Though out history, all fiat currencies attempted have eventually failed. What makes people believe that a world fiat currency won't fail, I don't know.

nicholas - WealthCycles Administrator


Where would one go, or from what dependable and reliable entity could one buy gold and silver?

Dear reader,

Mr.Maloney is indeed a persuasive presenter (but then his trade is a salesman).

Some might be a little suspicious of someone advising investment in precious metals while simultaniously having a business selling PM's. Why would this not be simply another pitch of someone selling their products?

There are those who do not believe the stock market is overvalued and strong job growth seems to indicate real growth than simply inflation of stock prices.

Thank you

There are many others that make an excellent case to buy gold and silver that don't sell the metals.

Hello fouriewa,

Yes, Michael Maloney owns a gold and silver business. He founded in 2005 because he believed (and still does) in the gold and silver bull market since 2002 (3 years before he started his precious metals dealership). 

Michael has also never said to follow what he says blindly. If you don't believe what Mike says, then do you own research and post dissenting opinion in the comments. We encourage debate at WealthCycles.

If you want to see Mike explain in his own words why he started his precious metals business watch "So Much for Experts" and "The Power of Knowledge".

Here is a brief summary if you don't have the time to watch the videos:

  • Early - 2000: Michael's Father dies
  • Early - 2000: Michael's Mother asks him to manage the cash his father leaves behind
  • Early - 2000: Michael hires a financial planner to manage the money
  • Middle - 2000: The financial planner looses 50% in the tech bubble crash
  • Late - 2000: Michael fires the financial planner
  • Late - 2000: Michael starts heavily studing economics, monetary history, and global trade
  • Late - 2001: Michael comes to believe gold and silver are the next bull market
  • Early - 2002: Michael makes his first gold and silver purchases
  • Early - 2003: Michael is invested 100% in gold and silver
  • Middle - 2004: Michael starts speaking publically about gold and silver
  • Middle - 2005: Michael starts to help him fund spreading the message

nicholas - WealthCycles Administrator

Excellent video Mike, More of the same please as it really drives home what a mess the megarich and their elite bankers have led us into.I am concerned about the potential civil unrest this will lead to-just look at todays protests in London.Governments should run countries on sound financial principles yet they always seem to make such fundamental mistakes - or are they just protecting the megarich at the expense of the average taxpayer? I don't expect much to change on this score after this fiat currency fiasco explodes in their faces - I will just seek to protect myself from it by taking your advice.

Dear Mike,

You make one mistake repeatedly.

In 1971 it is not true that all currencies became fiat currencies.

Switzerland has used gold backing of their currency until 1998.

Anyway, the other stuff I fully agree with.


Well done Wealth Cycle Team! That format is a great way to learn, and have it stick!

Mike you guys are amazing @ presentation. This video was too good!

Beautiful video. I am living in Australia Sydney, the housing price in here is insane. Everyone around me who invest in real estate said that this is the right time to buy otherwise the price will only get much more higher. I have been a student of wealth cycle and i know this cannot last forever. I am very interested if Mike can give us some opinion about the Australian Real Estate Market in Sydney.

Hi Marco

I'm in Melbourne, Australia and I believe we just overtook Sydney for the most expensive city. I think the prices here are absolutely nuts. Even The Financial Review has been printing articles over the past couple of months comparing Australian house prices with US house prices pre-crash as well as Aussie investors buying US property because they can actually get positive cashflow over there. Now that really says something! I think that people here have taken leave of their senses because the boom has been going for so long.

To quote the Housing Industry Association, the median Melbourne house price is now $468,500, up 263% over the past 15 years and the median Melbourne unit price is now $417,300, also up $263%. Over this time, the median Melbourne house price has increased from 2.9 to 5.8 times Melbourne's household income. That's practically double.

I can't wait for a correction to take place. Needless to say, I'm now a renter!


The demand and supply equation here in Melbourne are not the same as is in the States. There is more demand than supply and a shortage of public housing. population is also increasing. Prices are levelling off, as interest rates are quite high. Banks are not giving away free money like in the States and most home owners are not investors. Fortunateley, you need a roof over your head and are prepared to pay rent for that roof. Rents are also going up playing catch up.

As a Baby Boomer living in Europe, Spain, I find this style of learning very much easier to assimilate.

The complete topic about money and investing is totally new to me but it has grabbed my attention for the first time.

Wish I had had t6his type of financial education years ago.

I would love to know how and where to buy gold in small quantities to start my ball rolling.

Judith Atkinson

This has been the best one so far. Clean and to the point at a level that anyone can understand.

Again a very informative and good lecture.
Thank you.

Please do more videos. This is one of the best explanations on what's going on. Thanks!

Hey Mike, Great video, I was thinking today of what is next...if currency systems change every 30-40 years and if the dollar does go into hyperinflation, what could the next world currency be? Wouuld it go back to a gold standard or would another countries currency back them?

Beautiful video. Very crisp and clean. You made it simple to understand your observations up to this point. Please do more!

Brilliant! I know sooo much more about the world economy from you Mike. Thanks.

During the deflation cycle we should hold cash,not metals. Then, after gold and silver falls when deflastion is in full motion, then we should buy gold and silver priced corrected.


WealthCycles Commentary

Way back in 2008, Michael Maloney, in his book, Guide to Investing in Gold and Silver, described the economic scenario he thought most likely to come to pass. Here’s an update: it’s playing out right now!

Michael opined that U.S. Federal Reserve Chair Ben Bernanke, spooked by the specter of deflation, would over-react by inflating the currency supply—which Bernanke has done­. In a November 2008 video, Michael said Bernanke’s bailout of the banks would cause the stock market to bounce back, led by the banking sector. That’s exactly what happened.

In 2009, Michael wrote an article entitled “How High Can A Dead Cat Bounce?” The title referred to an old stock traders’ saying, “Even a dead cat will bounce if dropped from a high enough point.” Mike believed then, and events are proving him right, that the 2009 rebound in the stock market, which most people pegged as the beginning of a recovery, was in fact nothing more than a dead cat bounce.

“If something is really over-valued when it pops, it goes down in a crash,” Mike explains. “Then investors come in, chasing yesterday news, thinking they are scooping up bargains. What they are really doing is causing the market to bounce.