The other morning, shown on Turner Classic Movies, was one of the all time great comedies made In 1938, titled, “You Can’t Take It With You,” staring Jimmy Stewart, who in 1938, was a pretty young guy! When I lived in Philadelphia, I was a member of “Old Academy Players,” and I played the part on our stage, the part in the film, played by Lionel Barrymore. Old Academy Players, is where Grace Kelly got started in her acting career. I acted in several productions there, and once it was noted that Grace Kelly had donated another $10,000 to us. Grace was beautiful, and her family was wealthy. Her Dad made it, by owning a brick laying company, and Grace grew up in a beautiful mansion. Her Dad’s advertising slogan was, “Kelly for Bricks.” Enough of that, but ‘You Can’t Take It With You,’ gave me an idea for a column. Literally, ‘you can’t take with you,’ is an old expression, and the subject of countless Jewish jokes, who always said they were going to take it with them, or ‘die trying.’ You can’t take gold or silver with you either, and burying anything in your coffin, except yourself, would be a waste. However, you can leave gold and silver to your kids, family, favorite charity, or even a political party, with no inheritance taxes.
Physical things consume most of our lives. We need and use physical water, food, heat, cold, homes, cars, clothes, and just about everything we need and use. Paper is good for newspapers, paper money, contracts, wallpaper, books, and I suspect a few other items, but it is the physical things, which give us life, sustenance, pleasure, and all of which goes with our lives. There would be no life without physical items. I was 30 when U.S. coinage went from silver to base metals, and I was amazed at the short time it took for the silver to disappear.
I am literally amazed also, at how many Americans, use ‘wealth managers,’ to handle their financial affairs; usually with a 1% per year charge on all of their customer’s wealth! I believe most Americans, place their surplus assets in one of the over 700 wealth managers’ control. Fox Business channel, always seems to find a ‘wealth manager’ to be interviewed, as to his or her opinion on the stock market or government interest rates.
Think of it! Probably a trillion, and probably more dollars, are in the ledgers of wealth managers, buying and selling stocks, bonds, and other dollar denominated objects, of which no one has any physical possession. It’s all computer entries, just like bit coin is also. (The word ‘crypto’ means hidden or fake). A trillion or more dollars, as shown on computer screens, indicates America’s wealth or poverty. Nothing physical. Nothing you can count on, like physical hundred dollar bills. There are 875 million shares of General Motors, and 90.5% of them are held by institutions such as wealth managers, who have no physical shares in their offices, and neither do you. A share of G.M., indicates that you own a one hundred eighty seventy five millionth of General Motors. Does that give you any power over General Motors? No, because it is the G.M. board of directors, which runs it, headed by its president. Is G.M. ‘crypto?’ It surely is hidden, as is all shares of everything. All wealth, to me anyway, should be physical wealth, and not in computer entries or paper promises.
In a previous column, I noted that people occasionally ask us: ‘Why should I buy gold or silver, when you can’t spend it at the super market?’ Try spending your computer screen at a super market! Sell a couple of ounces if you need dollars. It’s quite simple. If your surplus wealth is stored in precious metals, it’s in your hands or safe to do with it what you please. Sell some or buy more. They’re physical gold and silver, which have been real money in all nations, for thousands of years. Gold and silver, which have always been desired by everyone, everywhere, at all times, at any time. They’re real physical wealth. Universal wealth. Gorgeous wealth. Wealth not involved with a government tax collector or lawyer administrating your will. Wealth which increases in dollar prices automatically, as the dollar shrinks in value, without you doing anything. They just sit there, automatically going up in dollar prices!
Why would anyone trust a manager of your wealth, when you can easily manage it yourself, at no yearly charge, or anyone knowing anything about your wealth to base charges upon, or a government to tax. Your wealth should not be for public or government consumption. One’s holdings in anything should be your business, and no one else’s. New York’s new commie mayor and his democrat stooges are going to pass a wealth tax. How would they know how much wealth you have, if it weren’t for bureaucrats, tax collectors, and wealth managers? California is also attempting to do just that.
I manage my own wealth. It costs me nothing, and no one has any idea of how rich or poor I am. I always keep some dollars handy, and last week, a client sold me three, gold Maple Leafs. He’s buying a new car and needed a few extra dollars to offset his trade-in, and cash he had on hand. All very simple. I own a million dollar home, a rental property, a few cars, antiques, hundreds of books, and a few paper dollars, and the rest is all in gold and silver. Why would anyone not do the same? Not to preach, but I am certain that when people buy a few coins from us, it is a safeguard or insurance, and not their entire surplus wealth. The buck has already lost over 95% of its purchasing power in my lifetime! Why would anyone want to store their wealth in a leaky bucket, administered by a ‘wealth manager,’ who may lose it all if markets go against him, and if me makes a profit, it’s taxable, after his 1% yearly charge! Nothing can possibly destroy the value of gold and silver!
When the stock market crashed in 1929, gold remained at $20.67 per ounce, and silver at 60 cents an ounce. The Iranian ‘Rial’ is worth a fraction of a U.S. penny, with the dollar consisting of a million rials. Those who stored their wealth in rials, have lost all of it. Those who stored wealth in French assignats, during the French Revolution, Confederate North and South money, during the War Between the States, German reichsmarks, after World War One, American stocks in 1929, and even paper money used in our Revolution, called the ‘continental,’ lost it all then too. Lest I forget, have already lost 95% of it today.
Be it a sunset, a great meal, glass of wine or an Evan Williams (the best bourbon) on the rocks, a great movie or book, a trip to somewhere, a restaurant, or anything physical, good or bad, they’re physical, not promises in a computer. None of my wealth is anyone’s business. My wealth goes up in price, not value, as the dollar goes down, and I have to do nothing to make that happen. I keep good books, pay all taxes on time, and never cheat Uncle Sam, and I’m not worried about my economic future. Worry about yours or in your wealth managers’ computer? Think about it.
-Don Stott don@coloradogold.com