Opinion » Letters

Hold onto it




I just have to comment on this, because I’ve seen nothing about it in any of the local media. You ran a story on the All That Glitters employee being put on trial for allegedly selling stolen merchandise in his store (“Trial begins for All That Glitters [employee],” Jan. 19). You also continue to run his advertising.

I don’t know the details of the case, but it occurs to me that this might be an unfair local “sting” at a time when every jeweler in the known universe is trying to capitalize on the price of gold by buying everything from fillings to scrap pieces to Krugerrands.

An unnamed local newspaper seems to be partially staying afloat just on the full-page ad revenue from traveling buyers of all things gold, silver, and numismatic. Is there any investigation of these operations? I brought in some old silver cutlery a month or so ago (at about the time silver was $35 an ounce). The appraiser quickly gave me a figure, not explaining fully how he derived it (but justifying mark down costs due to smelting, etc.). No real surprise: What pure silver was left in my wife’s forks and knives worked out to only $8 an ounce (he was pressed to admit). We walked out.

I’d go to a jeweler before I’d go to those guys. Besides, you know they are getting rich, as they keep coming back to town.

The average person is not very savvy about a lot of things related to precious metals. My advice (and my book, Crisis Investing and Entrepreneuring, repeats it) is don’t sell if you’ve had it for some time. The last decade saw gold and silver appreciate nearly 300 percent, and it beat the stock market and every other casual investment all to heck. The Chinese are buying gold bigtime, and even banks are now hoarding it. There’s even a slight chance (if Ron Paul becomes president) that our paper fiat currency, which has lost 70 percent of its value since 1970, will eventually be backed by gold again.

The traveling hucksters aren’t stupid, though I think they might take a bit of a licking this year as gold (but probably not silver) prices are going to flatten out.

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