Posted on 08/09/2024 11:39:46 AM PDT by dynachrome
More and more people from throughout the country are coming forward to complain about losing their retirement funds to a Beverly Hills company that promised to invest their savings in gold for attractive returns.
Eyewitness News first reported on claims about Oxford Gold Group last month. People said they transferred five-or-six-figure amounts to the company from their retirement accounts to inAnd then the actual gold never showed up in the depository and the company appeared to shut down without a trace.
Now others are coming forward from around the country with similar tales.vest in precious metals.
(Excerpt) Read more at abc7.com ...
seems like it’s a bit late for that.
“...And it’d gone!”
Patrick Granfar, the president of Oxford Gold Group, is a Democrat. ‘Nuff said
Actually, it bears repeating...
It’s interesting in a twisted way; part of the “lore” of buying gold (for some) is that you hold it in your hand, it’s not a cipher on a brokerage computer somewhere out in the New Jersey Meadowlands.
And yet people are intimidated, or hesitant about buying physical gold, perhaps understandably, because the buy/sell spreads are so bloody punitive. They’re perhaps used to buying stocks which are now commission free and have 1-2-3 cent buy/sell spreads.
So they buy gold through these surrogate companies. Of late, gold-IRAs have become somewhat popular(ized) on radio ads. I never understood until recently how you could have gold in an IRA but especially why it would be desirable. You buy gold for the anonymity, but if you have serialized gold bars in a repository, then certainly the government could track you. If you are buying unserialized sovereign coins, who knows what the hell you are getting or what you have. The gross danger with gold et al is, you buy it, you put it away, then 17 years later when it’s time to sell, you find out your goods are fake.
And yet, if you own these items, I have only recently found out about workarounds where you could take your OWN products and contribute them to an IRA, held in a Brinks vault or equivalent. “Equivalent”. Ha! As far I knew, you could only contribute cash money to an IRA. They in turn could BUY new gold and store it in a depository. And then when it’s time to sell, THEY sell it into the market and remit cash to you. You can’t take your roll of Eagles and send it into the depository.
Of course; any investment you hold in your hand can be taken away by a thug with gun pointed up your nose.
My point being, all this is designed to take the stuff you are supposed to hold in your hand and make it NOT in your hand.
The old saying in precious metal circles is ‘If you don’t hold it, you don’t own it.’
Forbes ran an interesting article on gold vs S&P 500 investing. Here are some key points from the article:
".... with a rancorous political climate, simmering social unrest, and economic uncertainty, gold again has rallied, hitting a new high ... Gold’s value seems to grow best when things are (or are perceived to be) at their worst. As an investment, it is the “pessimists play.”
But the gold bugs are quick to come to the defense of their favorite shiny metal. Cherry picking this period or that, they can show it works as an inflation hedge.
The piece de la resistance is that performance number. Yes, yes, gold prices have had their ups and downs, but over the long run, investors in gold were handsomely rewarded by that quadruple percentage return. Isn’t that proof enough gold should be in every long-term investor’s portfolio?
No. There is one fatal flaw in this investment thesis. Let’s revisit gold’s 5,333% return against the S&P Composite’s 3,737% return from 1970 to 2020. Sure, if you just bought the S&P Composite and let it ride for 50 years, the return would underperform against gold.
But that comparison is wrong. The comparison leaves out the eighth wonder of the world—compounding. Add in compounding and now make the comparison. That same investor buying the S&P Composite in 1970 and reinvesting the dividends quarterly would have seen a gain of 68,430% through September 2020.
And that is the problem with gold. Gold pays no dividends. It cannot compound. It does not have economic growth. It does not innovate. It does not generate cash flow. It’s just a piece of inert metal.
Investing in equities means owning a piece of a business. A business is an economic entity creating value and in doing so, grows in value over time. Put those businesses together in an index that reflects the U.S. economy and you have the S&P 500. The S&P composite represents the S&P 500 (the largest capitalized companies in the United States), and other major stock indices. Combined, these encompass every major sector of the U.S. economy. An investment in the S&P Composite is an investment in the U.S. economy. While the economy may ebb and flow over the years, it tends to grow. "
I would add that S&P 500 fund/etf investing is something for the long term investor for reasons previously explained.
“An investment in the S&P Composite is an investment in the U.S. economy.”
True statement.
Everyone needs to decide for themselves what they think the future of the US economy looks like.
“Investment advisors” always say the past cannot be used to predict the future.
Then they use the past to predict the future.
Lol.
Is that why the central banks of the world are increasing their gold holdings?
Metals are famous for ripoff artists because they are emotional/fear buys. I have reviewed the 50-year historical price charts for both gold and silver. That cured me of any desire to buy either in physical quantity. Also, the spread charged between buying and selling is ridiculous.
“ “...And it’d gone!””
Gratuitous South Park reference?
Be careful, the only reason the backed by thin air dollar has lasted as long as it has is because of it’s World’s Reserve status. That is fading away quickly.
Yup. Funny episode.
Gold bought in 2001 at $250 t/oz is now $2,450 t/oz. No counter party threat from anyone.
The DOW was right at 10,000 in 2001, numerous crashes, and is now only x4.
Gold x 10. Gold is where one puts his Wealth. Paper is for spending.
“If you are buying unserialized sovereign coins, who knows what the hell you are getting or what you have. “
I have bought gold coins over the decades. Buy from a reputable dealer and it is not a problem.
“The DOW was right at 10,000 in 2001, numerous crashes, and is now only x4.
Gold x 10. Gold is where one puts his Wealth. Paper is for spending.”
Since 2012:
Gold up 41%
Dow up 233% plus dividends
My major holding, ETN, up 500% plus dividends
Paper, not Wealth.
If you don’t have it in your possession, then you don’t own it... you own a piece of paper or a promise.
“Paper, not Wealth.”
They don’t issue paper anymore.
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