I’m certain that all of you played Monopoly when you were kids, and maybe even now. I love the game! As a kid, I learned a lot about business, economics, and even life, by playing. I consider myself an expert, but was beaten a year ago by a guy a third my age. While Monopoly can be fun and educational, unlike checkers or chess, it does depend on how the dice roll out. Chess and checkers require thought, and have nothing to do with dice or gambling, which after all, is what Monopoly is, in a way. Monopoly is both gambling and skill.
Hundreds of millions and billions of people play grown-up Monopoly every work day. Monopoly has paper money, deeds to properties, rents collected, houses and hotels built and sold, and some properties are more valuable than others. Aren’t the stock markets around the world, almost exactly like Monopoly? You buy stocks with paper money, which is backed by nothing other than the ‘full faith and credit’ of whatever government issued paper money you may use, or on computers. There are 126 million shares in General Motors, so if you bought a hundred shares with un-backed dollars being transferred electronically, how is it different than buying Boardwalk in Monopoly? Your hundred shares of GM are so microscopic a part of GM, as to be inconsequential. If you want to use paper money, you could go to your stock broker and give him or her the paper dollars for your stock. In Monopoly, the more valuable your property is, the more rents you get, like more valuable stocks give you more dividends. Funny, but after “GO” in Monopoly, the cheapest properties are next to the most valuable. Did you know that Monopoly’s properties are based on Atlantic City properties and streets, which were in existence when the game was invented? The Reading (pronounced redding), B & O, railroads no longer exist, but they did then.
The difference between GM stock and Monopoly, is that you get a deed for Boardwalk in Monopoly, proving that you own it and can collect rents on it, obviously in paper money, but your rents on Boardwalk percentage wise, are far superior to GM. If you buy GM, you get no deed, or for that matter, even a share of stock. You have bought a computer entry as proof of your ownership. If the computer network dies around the world, is there a backup to prove your ownership of GM? If you sell your Boardwalk in Monopoly, there is no tax, even though there are taxes in Monopoly, but not capital gains.
Stocks, just like Monopoly, are expensive and cheap. I bought a new Mercedes from a dealer in Ft. Worth Texas eight years ago, and the dealership’s name is “Park Place,” named obviously, after most expensive property in Monopoly. “Boardwalk” is an equally expensive property as is “Park Place,” but there are many boardwalks in the world, so the name is generic and not suitable for a Mercedes dealership. In stock markets, there are no dice, but the stock market ‘dice,’ (prices) are totally dependent on economic conditions, profits and losses, as well as huge blocks of stock being sold or bought by big dealers, or buybacks from the parent company. It is almost like dice in a way, and like Monopoly, thought and research may have you do well in stocks. There are so many trillions of stocks in the world, that you must remember a law of economics, which is almost true of gold, silver, stocks, bonds, and just about anything there is, and that is, “FOR EVERY BUYER, THERE HAS TO BE A SELLER.” With stocks, they can always print more, and they always do, and with gold and silver, so far anyway, more mines can be discovered, and even with extant gold and silver, prices can change if huge amounts of either, are sold or bought.
Is it fair to say that everything bought and sold, is a sort of gamble? Some people buy real estate and flip it, to do well. Other buy and sell used cars, antiques, futures contracts, stocks, and either do well or lose. Poker is widely played and generally is dependent on the cards dealt, and the facial and body of the players to bluff other players. Gambling in casinos is always fun, and I have a practice which has only betrayed me once. If you go to a casino, try this. I take a hundred dollar bill, and place it in a quarter slot machine and begin playing. When I am ahead, even a few dollars, I quit. I have only had this betray me once, and one time, my first pull got me a jackpot. I can only lose a hundred bucks, usually get a free drink, and it’s fun. I’ve never played poker.
Stocks are probably the most played gamble in the world, and all financial channels glom on stock prices, and as an incidental, the prices of currencies, foreign markets, and metals are on the line under stocks. Stocks are the thing, because so many people and businesses depend on them. Ever hear of a Monopoly adviser charging 1% for services and advice? Financial ‘advisers’ are a big industry, totally based on opinions of one company or person, and for big bucks. Monopoly is fun, and if you get beaten, it’s just a game, but stocks can be your life’s net worth.
Life can be fun, and I have had a great life at age 88, but I have never owned a share of stock, played poker, flipped real estate, dealt in used cars or antiques. Everyone should enjoy life, doing or working at what they like best, but in my opinion, and my kids’, we whole heartedly believe that for savings, you should invest in something that is beautiful, not printable, not dependent on governments or laws for value, compact, valuable world-wide, which can be sold if money is needed, without taxes, and left to descendants also without taxes. Something that can be held anonymously, stored easily, and which will be insurance against inflation, collapses, government coups and wars, just to name a few. The feeling of security one gets when one saves in gold or silver are immeasurable, and that’s why we are here.
I have a list of about a hundred Colorado Gold customers I send stuff to weekdays, which I find on the internet. Cartoons, political, economic, etc. E-mail me if you’d like to be placed on the list. I try to keep send outs at about 15 per day. No charge. don@coloradogold.com