Did anyone else see this gold ad during the Superbowl?Submitted by Michael Nystrom on Tue, 02/03/2009 - 23:24
Two past-their-prime stars urge you to sell your gold. I don't know what kind of misfortune has befallen MC Hammer that he needs to sell his gold records (and his dignity), but you might remember that Ed McMahon fell behind on his multi-million dollar mortgage and came close to having his home foreclosed on. Very sad:
100 million people watched the Superbowl, so no doubt tens of millions saw this commercial. Outfits like this pay a fraction of what the gold is actually worth - one article estimated about $300 / oz. But what does the average American know or care? They're just happy to get the spendable cash, and shops like this are popping up in malls across the country.
This is what happens during an economic collapse: Real money - gold - passes from weak hands to the strong. Like millions of Americans, McMahon and Hammer need to raise cash, and as the commercial shows, they'll sell anything to do it.
What differentiates gold from paper assets is that it has no counter party, and therefore no counter party risk. Any other paper asset - stocks, bonds, even the US dollar itself - is just the liability of some other party. If that counter party weakens, the "asset" you hold becomes worth less, or even worthless. Not so with gold. Gold just is.
Whatever you do, don't sell your gold. Gold accumulation is something that you should undertake as a lifelong project - adding to your stash over the years. Along with this be prudent with your finances so that you never have the misfortune of ending up like Ed McMahon or MC Hammer.