Posted on Thursday, March 12th, 2020 at 7:28 am by LaLonde Jewelers
Now when I entered the gem business it gave me an insight into the Gold and Silver Commodities Market. Back in 1979 and 1980, the gold market went crazy and hit an amazing height of $800.00 an ounce. This was a 400% increase.
Folks in their 40’s and older with large amounts of disposable income purchased large amounts of gold. Mostly One ounce Krugerrand from South Africa, or Canadian Maple Leaf. This was because it took until 1986 before the US government realized their loss and started making gold American Eagles.
Now a person that was 45 years old in 1980 would be 85 years old in 2020. So a 60 year old in 1980 would be a 100. You see where I’m going. I came across some of these folks who realized that they had to liquidate there gold because of their approaching inevitable demise. Some who had no next of kin had to sell when gold was $500 per ounce. But some kinda fell into better luck when in 2010 gold shot to $2,000.00 per ounce.
I remember hearing comments of “finally, I can make money on this gold” I didn’t have the heart to explain to that person that $800.00 in 1980 could purchase more goods and services than $2,000.00 could buy in 2010. This is because of inflation.
Now, not everyone could afford to buy gold or diamonds as investments or hedges against inflation.
I love it when I am able to sell folks these items and I hope they buy a lot of it.
I have known a lot of people who have a different kind of wealth. Family and friends. I had a mother who lived comfortably. She had a small diamond ring and very average accessories. She didn’t want more. She did have 11 children and 30 grandchildren and 10 great grandchildren, all who loved her very much.
I realized that this was having great wealth.
Some people are lucky enough to have both.
What is in your pot of gold?
Written by Dan LaLonde, G.G., G.I.A.
Lalonde Jewelers & Gemologists
The Gem Expert