The Lasting Value of Gold

The Lasting Value of Gold

No substance of value has held its worth, allure, and esteem longer than gold. No substance or animal creature on Earth. You know what that means: move over cockroach, gold's got your number. Gold is found in prehistoric burial sites, in jewelry designs all through the holy land, and in modern-day electronic circuitry like circuit breakers and buttered-up computer chips. Gold can also be found in recent investment reports noting that it topped out at more than $1,050 an ounce in mid-March, up from $680 a year ago. Although it dipped to $888 late in April, it has had a wondrous run, up from $349 nearly five years ago.

Gold's history is long and storied. There was a time, believe it or not, that Americans didn't have the right to sell coins of the golden variety. Except as jewelry, Americans were not allowed to own gold or sell gold from 1933 to 1975. When the ban was lifted, the controversial government-set price of $35 an ounce was abandoned and gold skyrocketed to its 1980 peak. During this ban, American citizens were still able to sell silverware, but for obvious reason, this didn't satisfy them as much as dealing with gold. For many years after 1975, it was difficult for ordinary investors like you and me to trade gold. Only the power brokers could do it. An old piece of jewelry could be sold to a pawnshop or some other dealer, but for far less than its true value. Some firms sold gold coins, but they often were marketed as collectibles for prices exceeding the value of the gold inside them. Once a gold stake was acquired, they had to deal with the hassle and expense of storing it. This era is now a forgotten dream, and it's unlikely that we'll ever see it again.