You can hardly watch TV for more than a few
minutes without viewing a commercial to buy gold.
They make you feel like an idiot if you don't
have gold in your portfolio. I'm not so sure
and maybe you can help me out.
I used to have a next door neighbor who
was president of a local bank. He invested
in gold Krugerrands (a South African gold coin).
It sorta seemed like a good idea, but then I got
to thinking (uh oh). Where would I store them?
The one ounce coin is heavier than the old US
silver dollars. I used to have some of the old
silver dollars, but they were too heavy and would
wear out your pockets. Just think what a couple
Krugerrands would do. If I had them today and
stored them in my side pocket, my wife would
become rich, getting them out of the creases
in my lounge chair,
then she might trade me in for a new sports
model. I could put them in my hip
pocket, where there wouldn't be as much wear,
but then I might be mistaken for a plumber,
when the weight pulled down my pants
and exposes my heiny. So I dismissed the idea.
A couple years ago, I again considered the idea.
Gold was going for about 1 K/oz. I even
called my local bank to see if they had
Krugerrands. The cashier I talked to said
she had some in her drawer. I thought
seriously about getting 6 coins, one for
each of our kids. But again, what would
they do with them? Carry one around, and if
it doesn't wear a hole in your pocket and drop
through, or get held up by a thief,
or they would have to buy a safe to put
it in, or get a safety deposit box.
So!!! I nixed the idea.
One day after watching a commercial, I called
a gold company. They asked me how much
I wanted to invest. I didn't really want to
invest, but I said, “Oh!!, maybe I'll start
out with a quarter million. The salesman got
real excited and said they could select a nice
selection of gold coins for me with a
minimum mark-up. Hmmmm.
I had no idea what a variety of gold coins
would be worth, but I would bet the salesman
would know, and garner a substantial
commission on my purchase. I then said I
was really interested in bullion (buying by weight).
That way, knowing the current value of gold,
I would be able to calculate the commission.
The salesman was no longer interested. SURPRISE!!!!
Gold is now hovering around 1.5K/oz.
Just think I could have made 50% on my
investment a few years ago. (If I could find someone
willing to buy) With our economy in trouble,
and the politicians quibbling about whether
or not to go into bankruptcy, wouldn't it
be nice to have some gold stashed away?
I could bite off a little piece of a krugerrand,
and give it to the guy at the window
of McDonalds for a burger and coffee.
Or, I could cut it in half and pay to put
15 gallons of gas in my car. I don't think I'll
do that. I think I'll be much more at home and
at ease with some of my fellow peasants.
Perhaps I should stick with investing in the
golden arches. What do you think?
Or, maybe we can gather our pitchforks
and gently prod our elected representatives
to begin acting like adults and in the best
interest of our country, not their party.
Then we won't have to worry about owning gold.