We’re excited to share an excerpt from The Great Gold and Silver Rush of the 21st Century, the latest book by Mike Maloney. In this chapter, Mike uses data to draw a compelling comparison between the gold rush of the 1980s and today’s landscape.
With several large banks, like JP Morgan, forecasting gold could reach record highs in 2024, we wanted to provide some data on what a real bull run on gold could look like…
“Adding it all Up”
So now let’s add it all up to try to estimate just how much currency could come chasing gold and silver in the Great Gold and Silver Rush of the 21st Century.
Versus 1980, today we also have:
- 18 times more people around the world that can buy precious metals.
- 55 times more currency.
- 56 times more millionaires.
- 200 times more billionaires.
- 220 times more available consumer credit.
- 31.5 times more assets under management.
- 49 times greater global stock market cap.
It’s actually impossible to accurately add all of this up. It really doesn’t matter if there are 18 times more people who can buy gold and silver… what matters is how many people will buy gold and silver. It really doesn’t matter that there’s 55 times more currency in the world… what matters is that almost all of the newly created currency went to people who were already well off… people who have significant assets to protect and therefore have an investor’s mindset. These are the people who will seek the safety of gold and silver in the next crisis, driving their prices to unimaginable heights.
Now, as I said before, I don’t want to double count anything or anyone here, so to make this easier I’m just going to lump currency, credit, assets under management, millionaires, billionaires, people with an investor’s mindset, and people with significant assets to protect all together and then pick a number as best I can. Let’s say that there’s probably 50 times more currency available today for investment in gold than in 1980. Yet the amount of available gold in the world has only about doubled, so that’s 25 times more currency per ounce.
Then, to that 25 times more currency per ounce we must add the speed of light news and market dynamics, and that gold and silver are Giffen goods that create more demand as the price rises, and the fact that their price responds positively to war, geopolitical crises, economic crises, and just about anything else that causes human anxiety… and you can still only get a tiny little inkling of just how big this thing is going to be.
If the bull market of the ’70s drove gold up 25 times and silver up 41 times with only 1/25th the amount of the currency per ounce chasing them, and then you add fear to the mix, just what do you think will happen this time around?
I’m not cold-hearted. Yes, I’m concerned for the plight of the average worker, the average citizen, and the average investor in the crisis I see coming. They are the ones who will end up taking the punishment for our immoral monetary system. I’m sorry for them, and I’m trying to help… that’s why I wrote this book. But please… somebody pinch me because I must be dreaming. I mean, I’m a precious metals investor, and this is just too good to be true. Isn’t it? I’ve gone over this hundreds of times and I keep on coming to the same conclusion; no, it’s not too good to be true… it’s exactly true, or even better.
But remember, price means nothing… value is everything.
I believe that for every ounce of gold and silver you own today you are going to be able to buy many, many times more stocks, bonds, real estate, businesses, and just about anything else you want or need. One day precious metals are going to amaze everyone. Make sure you come back and reread this chapter once gold goes soaring past $3,000… $5,000… $10,000… per ounce and never looks back. Because the Great Gold and Silver Rush of the 21st-Century is absolutely going to take your breath away.”
Article courtesy of GoldSilver
