This is a true story, and it happened last week. I was sitting in my easy chair, reading the Wall Street Journal, and the phone rang. “Are you the guy who deals in gold and silver?”
“Yes, what can I do for you?”
The conversation went on for a long time, but it turns out that this lady, a successful lawyer, had a savings account with several hundred thousand dollars in it, which was paying her 1% interest, and with the 9.1% inflation, Biden being president, crime escalating with criminals being turned loose, with no bail, etc., not to mention hundreds of thousands crossing our border weekly, and even being bussed to various cities, and you can imagine how the conversation went. She was alarmed, and was old enough, and a history buff besides, to know that paper money can be devalued at the will of politicians, who are utterly stupid about economics 101. Her father had told her about the German Reichsmark going from twenty-five cents American, to requiring a wheelbarrow full to buy a loaf of bread.
She had called a TV ad, and didn’t like the hard sell, and ‘used car’ sales force, and was confused as to where to go. A retired cop told her “you’ve got to go to Don Stott,” which she did. She had never heard of Colorado Gold or our web site. I told her I was basically retired, but people do occasionally call me. She was 60 miles away from me, but she decided to come and meet, which she did.
Like probably tens, if not hundreds of thousands of Americans, she was getting afraid. She had always thought that, even if the interest were only 1%, she was secure in U.S. dollars. I pointed out that at my age of 88, when I was a kid growing up in my Dad’s drug store in Washington D.C., Hershey bars and Cokes were a nickel, and I bought gasoline for under a quarter a gallon. It was the same U.S. dollars, we have now, only the coins are no longer made of silver, and haven’t been since 1964. “Prices aren’t going up, the dollar has gone down,” was what I told her. I then quoted “Stott’s Law,” which says, “The more of anything there is, the less they will be worth,” and this includes U.S. dollars.
My point was, that U.S. dollars are not a secure way to store wealth, since right now, a hundred-dollar bill will buy about ninety cents worth of anything, and the process will continue, unless the presses and handouts stop, and the budget is balanced. Fat chance. A long story short. She emptied her savings account, except for a few thousand. Her bank manager asked her why, and she said that gold was historic money, and paper money was not a security symbol any longer, and she was protecting herself. His arguments didn’t convince her, but undeniable history doesn’t lie. She feels secure now. She and her wealth are secure, and if she has any kids, she can leave her security to them with no taxes Her bank held paper money is history, and her real money, is somewhere only she knows, no one knows she had it, she gave no Social Security number, or even address or name. The rest of the transaction, is between she and me, as it should be.
Don Stott – don@coloradogold.com.