11/15/09: Is Gold All that Glitters? Exploring the Relationship Between Debt, Dollars, Gold and Real Estate with Special Guest Mike Maloney
It’s hard not to be impressed with the growth of gold over the last several years. But did you know that there’s a relationship between gold and real estate prices? On this broadcast, The Real Estate Guys explore the relationship between debt, dollars, gold and real estate!
Sitting behind the golden microphones for this episode:
- Host, Robert Helms
- Co-Host and Financial Strategist, Russell Gray
- The Goldfather of Real Estate, Mr. Bob Helms
- Rich Dad’s God Advisor, Mike Maloney
In the wake of a weakening dollar, gold has been breaking records. But what does that really mean for your real estate, mortgages and cash reserves? We start the show with a discussion of inflation and what causes it. Readers of Equity Happens know that when the money supply increases faster than the supply of goods and services, price inflation occurs. Mike Maloney gives us a very interesting historical perspective while clarifying the important differences between money and currency.
Like Russ, Mike Maloney is a guy that likes charts and graphs. He is also a student of history. He tells us what “fiat” currency is and what it’s track record is. You do not want to miss this!
Mike also explains the relationship between gold and real estate prices. He says historical patterns exist and they can provide valuable insight into the future. If you want to make profits, you need to figure out where and which way the money is flowing. If you’re on the wrong end of the move, you lose. Get it right and you win big. But what happens if you decide not to play? Is your money really safe in the bank?
Another fascinating discussion revolves around the “base” money supply and why real estate prices have fallen even though the money supply has grown. Does this mean real estate is “over” or is this a lull before a new wave of appreciation? Mike tells us what he thinks and why.
As we’ve said for quite some time now, the rules of the game have changed. But a bend in the road is not the end of the road unless you fail to make the turn. Tune in to this golden opportunity to pick up some nuggets of wisdom from Rich Dad Gold Advisor Mike Maloney.
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Is Gold All that Glitters?
The AP reports that gold hit an all time high of $1,118 per ounce today. Do you understand why? Do you REALLY understand? And what does gold have to do with real estate (besides that you dig gold out of the ground)?
Great questions!
Gold’s rise is a prime refection of a falling dollar. Why? Because when the dollar “falls”, it takes more dollars to buy anything that’s real. It’s called inflation. Supply and demand play a factor, so just because the dollar falls, doesn’t mean that gold is going to respond immediately and proportionately. But in general terms, a falling dollar means inflation of things that are real. Things like gold, oil and real estate. Typically, gold really takes off when people are nervous about the dollar. So take that for what it’s worth.
The Real Estate Guys don’t claim to be experts at gold, but it’s something we’re very interested in. We watch the demand for gold, oil and treasuries because they give us insight into where cash is moving. When cash moves into real estate or mortgages, then it helps push real estate values up and equity happens. Do you see the connection?
Russ just got back from the Rich Dad Art of a Deal conference with Robert Kiyosaki. Rich Dad Gold Advisor Mike Maloney was there and we invited him to be on The Real Estate Guys show. We figure it he’s smart enough for Mr. Kiyosaki, we’re interested in talking to him. We want to pick his brains on your behalf and find out what he thinks about the movement of cash and its effect on real estate. Sound interesting? Then stay tuned to The Real Estate Guys! To make sure you don’t miss an episode, subscribe to our free podcast. And while you’re at it, sign up for the newsletter – and tell a friend. When you help us grow the audience, we are able to continue to bring you quality guests and programming. Thanks!
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