We've all heard the expression, "Every cloud has a silver lining." But this time I think a 'golden' lining is a more appropriate label.
There are very few who are not feeling rained on by the clouds of today's economy, but there is a bright spot. While many are looking to find cash, gold has been shining brightly. If you have gold coins, nuggets, jewelry, or bullion it is worth more now than any other time in history.
For those who saved gold for a rainy day their actions are now proving wise. There are some who bought gold while it was in the $250 to $400 range over the last twenty years. Today as the rains of our economy fall, they are finding not only is it there when it is needed most, but that it is also worth a lot more than it used to be. Gold has been over $1,000 since last September, and cashing gold in today is not only netting cash but also reaping profits.
Others who are looking for cash are also finding that old unwanted jewelry is a great way to find that cash. Cashing in gold has always gone on, but today one can net more than ever. Broken jewelry or pieces that just aren't worn anymore also worth more now.
From what I have seen this "golden" lining is coming at a good time. I can not imagine just how much tougher it would be on people in this economy if their items were worth only one third of what they are now. The price of gold being high is a refreshing positive in a sea of negatives.
The one thing to look out for with clouds is lightning. It strikes quick and then is gone having only brought destruction. What am I talking about? Well, now that gold is worth so much there are some who want to strike quickly. There are those who look at the gold boom as an easy way to make a buck. All around the country people are showing up in hotels or opening up in a hole in the wall.
These people do almost nothing for a struggling local economy. Sure they sell a few hotel rooms and dinners, but no other profits stay in the community. These people do not employ locals, shop at local stores, sponsor community events or organizations, or pay taxes locally. Worst of all they have no responsibility to the community they are buying from.
My wife recently went to one of these hotel buyers just to see what it was like. When she asked them what percentage they were paying for gold she was told 75-80 percent, but when we used a calculator it only came to 52 percent. I guess they just did not care if they were lying as they would not have to see her again.
This "golden" lining is a good thing for today's economy, but remember to be careful of lightning. And if you are selling in a hotel room or to a fly-by-nighter you may just be in the path of that lightning bolt.
• Allen Rowe is the owner of Northern Nevada Coin in Carson City.