That’s the headline in a front-page story in Friday’s Journal (6/19/20). The first paragraph reads:
“Wirecard AG, one of Europe’s biggest and fastest growing fintech companies, said auditors can’t locate more than $2.1 billion of its cash. The disclosure shook investors, and the company’s shares dropped by nearly two thirds, wiping out $9 billion in market value in a matter of hours.”
So much for that, if you had plunked down your cash for its stock. Or consider J.C. Penney, whose stock a few years ago was $87, and now is worthless, thanks to a CEO, who had, he thought, a bright idea of scrapping all the sales which women love, and telling customers that there will be no more ‘sales,’ and all merchandise will be subsequently priced at the lowest possible level, and it will save all the needless advertising, lowering retail prices, thanks to the advertising savings. Women will no longer need to consult ads, as they can be assured Penneys is doing everything possible to keep prices low. He was soon gone, and J.C. Penney never recovered. Suppose you had bought J.C. Penney shares as retirement insurance? A friend at our church was a Penney store manager for many years, loved his job, and on retirement, chose to get cashed out. Lucky for him! After all, J.C. Penney had been a going concern for over a hundred years, hadn’t it?
Or maybe Kodak, which had invented just about everything concerning film, cameras, and picture taking? The Kodak buildings in Rochester New York, sit empty, a glaring example of how wrong a corporation can go. When digital came on, Kodak kept on making film cameras, thinking that nothing could possibly replace the millions of film cameras in existence, which of course, used Kodak Film in the main. Not having to buy film, get pictures developed and printed was inconceivable to Kodak’s CEO. Kodak no longer exists, and the colorful “Kodak” signs are now a collector’s item, and can be seen in antique stores. Kodak shares gave millions an insurance policy for their retirement. Millions lost their investment.
Sears Roebuck, Montgomery Ward, Western Auto, A&P grocery stores, and Howard Johnsons, all had thousands of outlets and stock shares which went along with them, which millions invested in, much to their sorrow when they became worthless. Blockbuster video stores and Toys-R-Us, for a while did very well, as did their shares. But all came to naught, and shareholders could use their shares as wallpaper denoting American retailing history, it they liked to decorate. That’s if they had any physical shares, as I don’t think any stockholder ever get physical shares any longer. They are all listed in computers. If the computers listing the shares went bust, and all records were lost, where would the shareholders be? I don’t know, as I have never bought any stocks.
Physical things may wear out, get rusty, become obsolete, or even be un-repairable due to parts no longer available, but gold and silver are compact, do not rust, have no moving parts, never need repair, prices aren’t set by governments, and gold coins at the bottom of the salt water oceans can be recovered in mint condition. Gold and silver cannot ever go to zero, as can anything made of paper, with promises printed on them. They are valuable, beautiful, convertible into any currency in the world, and require no ‘financial advisor’ to charge for their services. Just take your surplus dollars, and buy a few gold or silver ounces with legitimate hallmarks and their contents and purity listed on them, store them in a safe, or as you see fit. Sell some if you need dollars, and leave them to your kids with no taxes. It’s all so utterly simple. Colorado Gold’s been around since November, 1977, and has always had an A+ Better Business Bureau rating. We’ve been around since before the TV advertisers were even a gleam in their father’s eyes, and we never advertise or call anyone. People who want metals call us, and that’s the way we feel is legitimate. Grocery stores don’t call you. You want groceries? You go to the grocery store!
Don Stott
don@coloradogold.com