This is a Review on Why Gold? Why Silver? Why Now? by Jonathan Quek. The book is written in 6 parts. I will give a short review / summary on each part of the book.
Part 1 – Fiat money and the fairly tale bank: Understanding inflation and the Federal Reserve
This part covers a comprehensive explanation in US monetary history. It discussed about the creation of Federal Reserve System (Fed). It emphasized that Fed is neither ‘federal’ nor it has any ‘reserves’. The evolution of money could be broken into 5 stages which are: 1. Barter Trade, 2. Gold and Silver, 3. Gold and silver certificates, 4. Fractional reserve banking and 5. Fiat Currency. These 5 stages are based on US monetary history. Many examples are giving through using US Congress, Fed, The Great Depression, Bretton Woods system, etc. Since all countries currencies are directly and indirectly pegged to US Dollar, the printing money in US affects the rest of the world that leads cash to become trash.
Part 2 – The debt and the dollar: Understanding symptoms of economics doomsday
This part discussed heavily on global economy. US as the largest economy power is put into microscope and being analyzed. US is trouble in due to the Food Stamp Participation, military spending, housing bubble, unemployment rate, new debts, and inflation. Also, discussion on many countries that have been through hyperinflation including Argentina, Austria, Brazil, China, Israel, Mexico, Philippines, Russian Federation, Taiwan, United States, Zimbabwe, Germany, Greece and the collapse of European PIIGS (Portugal, Ireland, Italy, Greece, Spain). Leaders who are in economical power always choose the easy way out during financial crisis (to print more money to solve the problem), rather than admitting to their mistake and rectify the root cause of the monetary problem.
Part 3 – The prophets of wealth: Our economics future and interviews with the experts.
The part discussed the possible global economy scenario. 1. Mild Inflation, 2. Deflation, 3. Major Inflation, 4. Hyperinflation. Regardless of which scenario, gold and silver will continue rising. Among all, mild inflation is the least likely to happen; while hyperinflation is the most likely to happen. Jonathon explained in detailed about hyperinflation using Germany as an example. The chapter also gave top 12 warning signals of hyperinflation and each signal is explained with specific examples. This part ended with some short interviews with Jim Rogers, James Turk and Victor Foo.
Part 4 – The gold and the bold: ABCs of investing in gold
This chapter covers the fundametal in gold. It describes the 10 characteristics of gold and 5 reasons on why gold is the most treasured among all precious metal, 3 main sources of the gold supply and 3 major demands of gold. Also, this part of the book includes practical guidance on how to purchase gold in Malaysia and explaining some of the terms in precious metal investing. This part ended with 18 hottest questions and Jonathan has answered them in very simple manner.
Part 5 – Silver, the new gold: ABCs of investing in Silver
“If you think gold is good…wait till you see Silver!”, that’s how Jonathan put into his book. Just like all of us who see the potential in silver investment, Jonathan too believes silver as investment will be very profitable. In this chapter, he talked about 5 major reasons why silver is a good investment. He continued with discussing how one can buy himself some silver as investment. The chapter ended with a list of FAQ related to silver investment. This chapter consist of 28 pages of content.
Part 6 – Cruising in your ark amidst tsunami: Gold and silver, the barometer of world prosperity
The last chapter is a short chapter. Jonathan emphasis the importance of investing gold and silver because the next financial tsunami is coming. This is an unfair transfer of wealth, whether you like it or not. He has illustrated with several ASEAN countries on how did precious metal perform during 1997 financial crisis. Lastly, he again urged everyone to invest in gold and silver!
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