A Golden History Lesson

Amoeba and I were in Seattle on the waterfront this week and I read a commemorative plaque that surprised me. The Klondike (or Yukon) Gold Rush was triggered by two ships, one that landed in San Fransisco and one that landed in Seattle. The ships disgorged miners with large nuggets of pure gold. The press got a hold of the story and soon the rush was on.

The news of gold in Alaska came during a time of serious recession. There was wide spread unemployment, bank failures and devastating financial hardship. The promise of huge gold nuggets littering the ground was too great a lure. People from all walks of life rushed to Alaska in search of gold.

Nations topple. Banks fail. Property prices wax and wane, but golden “nest eggs” in the form of coins have kept people from panicking for years.  I know my step-mom would buy gold coins and squirrel them away. She kept them in a tennis ball tube in the back of her closet. That was her security against ever being broke.  Now days places like Goldline International provide gold storage. I’ve never used their service myself, but I am certain they provide better protection then a tennis ball tube in the back of a closet would. If you’re thinking of investing in gold, you’re following an historic tradition.

Golden Savings

My grandmother often mentored young women in the church, most especially young mothers. One such woman whom, for the sake of this story I will call Mrs. Ditzy, was left a large coin collection in her grandfather’s will. Mrs. Ditzy asked Gram if the collection should be sold. Since the family wasn’t in need of money, Gram suggested that the collection be secured as an investment for the young couples future or their children’s college.

I remember seeing an impressive pile of $20.00 gold pieces. Gram mentioned that it was only FRction of wht she’d received and that they were all from the late 1800s. Mrs. Ditzy explained that her grandfather never trusted the banks so he bundled his money in sacks and kept it under the floor boards in his bedroom. Gram told Mrs. Ditzy that she needed to keep the coins some place more secure.

What Gram didn’t tell Mrs. Ditzy was that the coins, by the mid 1970s, were worth more than their face value. I imagine Gram thought Mrs. Ditzy, or perhaps Mr. Ditzy, already knew. All I know for certain was how appalled Gram was to learn that Mrs. Ditzy had deposited the coins in the bank — and not in a safety deposit box or some other secure storage. Mrs. Ditzy gave those coins to the bank at face value and opened a savings account.

I am relatively certain that you, dear reader, are much smarter than Mrs. Ditzy, but just in case you’re not, let me introduce you to Goldline International Incorporated. If you are going to sell or buy gold online, Goldline International is the place to go. They also provide safe gold and precious metal storage. Don’t be a Ditzy!

Solid Gold Savings

Whenever the financial climate gets shaky, there is a sudden peak in gold investments.  The current economy is no different.

Are you one of the people looking to safe guard your savings by converting it to gold? Over the last several years as the purchase power of the dollar fluctuated wildly, the price of gold steadily rose.  Many people who invested in gold ten years ago have seen a threefold increase in their investments.

There are any number of ways one can buy gold.  The British Sovereign, the French 20 Franc Rooster, and the Swiss 20 Franc are popularly purchased gold coins. They are also easy to safe guard either in a special gold storage facility, or in your own safe deposit box.

According to the July 2009 Merrill Lynch Research Investment Committee Report:

Gold has outperformed several investments from different asset classes according to a research report from Bank of America – Merrill Lynch. The July 14, 2009 research report indicated that gold bullion outperformed the S&P 500, 3-Month Treasury bills, long-term treasury bonds, and high-grade corporate bond on a two and ten year basis.

In posting the Merrill Lynch Report, Goldline International pointed out that past performance does not guarantee future performance. They also indicated that gold is best kept as a long term investment. Three to five years minimum.