Toughish Investing

Message:

Gold and Silver were once equal value before discovery of New World. The slaves of Cusco Inca alone, one mine, flooded the market. Still produces 5 million ounces a year. Changed much of Old World, the glut of cheap silver. Cheap? Unless you're a conquered Spanish slave. But then again, they should have known better and prepared by inventing their own gunpowder. They had same Religious Zeal; that's half the fight.

Silver went through a Pump & Dump, reaching $117 an ounce before dropping to (right now) $76. But that's not the real bottom. The metal is extracted-refined for $22 an ounce. "Stackers" are guys that buy small mint coins, like ones w/ Evil Dead characters inscribed. They still drive weekly price, but another get-rich scheme may have popped.

But to gloat. My wife had a set of Antique Silver (1907), she got from a Great Aunt. We use it once a year, maybe once every other. It takes her a full day to clean. She tried everything, even electrolysis pads. I told her just downsize, and we can sell it in Beverly Hills to an agent.

That agent said "No one wants this lifestyle anymore." We agreed. My kids don't want refinement. Flatware is $80 for a great set. So I asked the guy if he still wanted the Silver. He said, "sure. Sterling is 92.5% precious metal." I was expecting penny a pound junk weight from the guy. The slotted box holding the set was grand, but he didn't want it. Agent dumped it out in a tray. He weighed the metal and got on the phone, then came back with a figure of five grand!

Another odd windfall for the Boomer Generation. Go Team. I think I will treat myself and the wife to ice cream.


Yours,