Why write about someone who died two years before I was born? You’ll see, but since he was called the “King of Broadway,” having produced over 70 shows, a bit of theatrical history, might interest you. Having been in the theatre business for eleven years, with six theatres, and having done a bit of acting along the way, theatres are part of my life. “The Phantom of the Opera,” on Broadway, is closing in February, after 35 years, probably the longest running show ever, on the “Great White Way.” Bonnie and I saw it, and in the last of my theatres in 1964, a 1927 gem, with stage and pipe organ, I played the silent version of it, staring Lon Chaney, with live organ accompaniment. Great fun it was!
Ziegfeld went broke about 1920, even though his famous “Ziegfeld Follies,” which glorified the American woman, filled theatres from 1907 to 1931. He made some kind of show business error, and it must have been a whopper, because it bankrupted him. His wife sold all of her jewelry, and “Flo.” as he was called, sold everything he had, which could be sold, which gave him some capital to start again. Everyone thought he was finished, but he swore he would rise again, and he did. He did rise out of the dust, and produced even better and more famous and profitable shows, such as “Rio Rita,” “Three Musketeers,” and of course, Edna Ferber’s novel, with Jerome Kern’s music, in “Show Boat,” which ran for 572 performances, and has been made into at least two films, the 1951 version is best, and I’ve seen both. Wonderful film with Katherine Grayson.
After Flo rose, and was even more successful than before, in 1928, he went to the bank, borrowed all the money he could, and bought, guess what? Stocks, on margin! When the market crashed the following year, all his loans became due, and Flo went down the financial tubes. He never rose again. His un-payable debts, runed his health, and he died in 1932, at age 65.
The market crash in 1929, bankrupted millions of Americans, who had placed their trust in paper ownership of corporations, run by a few men, who thought they knew everything, but didn’t. No one knows what the future holds, and especially if your wealth is not in something physical, such as a farm, home, gold, silver, or anything not a paper promise, such as a millionth ownership in a corporation, run my a few ‘masterminds.” If one goes bad, because of weather, economics, natural disaster, or stupidity, others may, and in 1929 did follow, and brought down the whole world’s economy. Throughout this economic disaster, gold stood firm at $20.67 per ounce. Then, there were no Gold Eagles, gold Maple Leafs, gold Krugerrands, or bullion bars. There were gold coins in every nation, and especially in America. From $1 coins, to $5, $10, (Eagles), $20, (Double Eagles), all were commonly used to buy and sell, and were not dependent on stock market crashes or government stupidity for value. Had you been saving in gold, by stashing gold double eagles in your safe, and not acting as did Flo Ziegfeld, you would have been saved. Had Flo not borrowed to buy stocks on margin, but saved in gold, and bought stocks for cash, he might have survived.
So far today, the Dow has lost 5600 points this year, and good old Bit coin has fallen from 68,700, to 19,000. Bitcoin, is backed by nothing, and stocks are backed by a theoretical teensy ownership in Ford or some other corporation. Treasury Bills, pay about half the inflation rate at any time, and are of course, backed by the ‘full faith and credit of the federal government.’ Gold and silver, have had their ups and downs, as have all physical things one can own, be it a farm, ranch, cattle, real estate, machinery, antiques of any kind, or any of hundreds of physical items. Physical things, can be difficult to own as inflation hedges, because of their size, unless you use them to make a living, live in, or have as a hobby. Gold is highly compact, with silver semi-compact. Physical things you can hold, own, care for, or use, can never go below their cost to make or replace.
With the gold-silver ratio at 86 to 1, one ounce of gold, will get you 86 ounces of silver, making the silver market have a wait time, though you can lock it in at current prices. There is no shortage of silver. Only a shortage of mint manufacturing ability. Our supplier, owns its silver mint, and it operates 24/7, as I am certain all mints are.
Flo Ziegfeld, left a theatrical history, just as important as did Ford to autos, the Wright brothers to aviation, Thomas Edison to light bulbs, and gold and silver to money in any nation at any time. Great physical stuff, as beautiful as any! – don@coloradogold.com 1-970-249-4646