“Silver & Gold, Like Houston?”

I love Texas!  Texans are friendly, patriotic., and simply great people.  When I had three hotels in Silverton Colorado, we used to say that, “Texas money keeps Colorado green.”  Probably does.  The problem with Texas, is it’s too hot and too flat.  Colorado is the most logical place to escape Texas’ problem.  What does this have to with Houston and Gold and Silver?  Let’s start off with one of Texas’ greatest heroes, named Sam Houston, who of course, Texas largest city is named.

Sam Houston was tall. Six foot three inches. He was raised in the Indian Cherokee nation and his Indian name was “The Raven.” In 1813, he left the Nation to start an Indian School.  At age 18, he joined General Andrew Jackson to fight the British, and gradually improved his rank in the Texas Army, and even though he had been raised as a Cherokee and spoke their language, he joined the Texas Army.  With Jackson, he constantly fought Indians, as well as the Brits, participated in the pursuit of one thousand Creek Indians, and at the battle of Horseshoe Bend, he became one of the heroes , but was injured and left scarred and in pain after being shot in the shoulder, with chips of bone slowly working their way out, causing drainage which persisted for years.  He married a half Cherokee woman, known as Talihina, studied law and became a lawyer in Tennessee, served in the House of Representatives two years, and was elected Governor of Tennessee in 1827.  Few thought Houston looked the part of commander in chief of the Texas Military, but he got the appointment, and became General Sam Houston.  Fellow delegate, Anson Jones, thought he looked like “A broken down sot.”  Jones was kept awake all night by “A drunken carouse,” involving Houston.

Houston wasn’t at the Alamo, as he was busy getting documents signed making Texas a state, and free from Mexico.  A few mistakes were found in the “Texas Declaration of Independence,” which were corrected and signed on March 3rd, 1835, which was Houston’s 43rd birthday.  At the same time another document was signed forming the “Regiment of Rangers,” which was later to be called, and still are called, “The Texas Rangers.”  The Alamo was lost, but General Sam Houston won the battle of San Jacinto.  Houston served as a U.S. Senator, and his name was even mentioned as a possible candidate for the President of the United States.  Houston died of pneumonia at age 70 in 1863, in his home in Huntsville, where the world’s tallest American Hero Statue, a 67 foot tall granite, concrete, and steel frame rendition of Houston stands, near the city in his honor.

Why is there a similarity between Houston and metals?  Houston got off to a hideous start, leaving his wife and family, betraying his roots by fighting Indians, being a drunk, but becoming a first-rate hero, making Texas the 28th state of America.  Like Sam Houston, gold and silver now are regarded by most, as  beautiful, but not real money.  Probably 90% of the world considers gold and silver as jewelry, not real money.  On Fox Business a couple of days ago, a woman was complaining about her IRA losing 50% of its value.  Tales of losses in paper items are common, and always have been common, because paper or computer entries are dependent on investments in engravings on paper or computer entries.  Just think about a CEO of a huge corporation, and what can happen.  General Electric, for years, was the favorite child of the Dow, until its books and investments were examined and found to be a huge exaggeration.  G.E. went down by one CEO, who thought he was a genius, but practically ruined G.E., which now has abandoned its locomotive business, which it was a leader in, and the Jet Engine business seems to be out also, which was a big G.E. item.  One guy can do it.  Aren’t you glad you don’t own coal mine stocks?

When paper and ink fail, and computer entries do also, which always has happened and will eventually happen again, think of what people in Turkey think now, when their currency has fallen like a ton of bricks, thanks to its government.  If you had a savings account in Turkey, rather than saving in gold and silver, guess what?  As the Lira went to the basement, gold and silver went to the sky, as they ALWAYS have done. In 2008, the stock market crashed and Savings and loans went bust by the dozens.  Gold and silver went down a bit too, but they were, and always have been rare metals, beautiful metals, real money, and value not dependent on governments.  Even back to biblical times and before, gold and silver were real money and not dependent on government, computers, or paper documents.  A hundred fifty years ago, in the U.S. there were ‘gold bonds,’ which called for repayment in gold, not dollars.  Government outlawed them, and holders never got their gold, but paper money.  Gold and silver have always bought the same things, regardless of the value of paper money.  A couple of silver dimes will still buy a gallon of gas, and an ounce of gold will; still buy a good men’s suit.  Recently, a new high end department store opened in Grand Junction, 65 miles from me, and guess what?  They sell Hart, Schaffner and Marx mens suits, of which I have two.  They are priced at the price of an ounce of gold.  When I bought mine many years ago, they were then priced at one ounce of gold.  I remember, because I was getting into the precious metals business in November 1977, and I bought them then.  Hope your Christmas and New Years were great.  We’ll see what happens in 2022! 

Don Stott- don@coloradogold.com