Hunt brothers sacrificed to save the US dollar says Mike Maloney

Episode 72: Mike Maloney, founder of GoldSilver.com and author of the Guide to Investing in Gold and Silver talks to GoldMoney’s Alasdair Macleod. They discuss why gold is not in a bubble and talk about the potential for the silver price and how the end of the precious metals bull market in 1980 came about.

Maloney states that there will be a great financial crisis within this decade with the fear of subsequent political upheaval. Looking at the acceleration in the money supply both men agree that gold remains undervalued and under-owned. They talk about possible issues with gold ETFs and point out the need to own actual physical bullion instead of paper claims on gold in order to avoid counterparty risk. Maloney emphasises that compared to the bull market in the 1980s, the current bull market in gold is taking place on a global stage with much higher participation and therefore price potential.

Maloney is very bullish on silver and expects the gold to silver ratio to narrow towards 12:1 as the market will try to rebalance the value of those two currencies according to their rarity. At some point gold will get too expensive for the common man making silver the more affordable option. They also discuss how much impact the Hunt brothers actually had on the price of silver in 1980 and how the bull market ended.

This podcast was recorded on 19 November 2012.

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FinanceAndEconomics

Alasdair started his career as a stockbroker in 1970 on the London Stock Exchange. In those days, trainees learned everything: from making the tea, to corporate finance, to evaluating and dealing in equities and bonds. They learned rapidly through experience about things as diverse as mining shares and general economics. It was excellent training, and within nine years Alasdair had risen to become senior partner of his firm. Subsequently, Alasdair held positions at director level in investment management, and worked as a mutual fund manager. He also worked at a bank in Guernsey as an executive director. For most of his 40 years in the finance industry, Alasdair has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.

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