GoldOunceOwning just a little bit of gold seems like such a great thing right now.

I mean, isn’t the world in turmoil?  The paper US dollar is worthless – or soon will be.  Wouldn’t it be smart strategy to have some gold tucked into my sock drawer?

I could buy this beauty for only $1,699.99 – and then buy a few more when I was named in somebody’s will. . . . . .

Ahhhh. . . .  the REAL size of this bar?  41mm X 24mm

(Click the image to buy her.)

I was born in 1945, so i remember when gold sold for $35 an ounce.  The government controlled the price, so it stayed the same for years.  Here is what happened:

GoldPricesIn the 19050s, “The U.S. spearheaded an ill-fated attempt to change the world’s thinking about gold, weaning it away from gold as a medium of exchange, and setting the worldwide value of gold at $35 per ounce.” (1)

In 1972, “The gold standard price of gold was raised to $42.22 per ounce. . .  the major U.S. Central banks (announced) that they would buy and sell gold at the free market price. . .  The concept of government regulation of the price of gold ended and was now based on supply and demand.  This marked the end of the 180-year-old gold exchange standard and ushered in the current monetary system of floating exchange rates.” (1)

2013 – That tiny chunk of gold would cost me seventeen hundred bucks, plus handling fees, etc.

The AP tells us “Gold is having a summer revival.. . . . . Gold has surged 15 per cent since sinking to $1,212 an ounce, its lowest level in almost three years, on June 27. A gain of 20 per cent or more would put the metal back in a bull market. . .  When financial markets get jittery, investors often buy gold because it is considered one of the safest assets that can easily be converted to cash. As the stock market soared this year, rising as much as 20 per cent, investors had less need to hold gold. That has changed the last four weeks.” (2)

Did you catch the phrase, “can easily be converted to cash?”  What if cash is worthless, like during WWII when a wheelbarrow of German Marks might buy you a loaf of bread, if you could find a loaf of bread.

As my son points out, “You can’t eat gold.” So when the economy collapses, will that tiny piece of metal be worth anything?  Probably not. Surely not $1,700.

Just something to think about.

Oh, I have learned that gold coins are not taxed.  If you do it right, the IRS has nothing to do with it.  So I guess instead of the little Swiss bar, I’ll find some nice American coins.

Just a couple of coins to put in my sock drawer.


(2) AP article

Article dedicated to Sean.


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