Monday, February 02, 2009
Yesterday's Cash4Gold Super Bowl ad says a lot more about the dire condition of the typical American's balance sheet than it does about the trajectory of the gold price.
In case you weren't aware of the intentional irony, both Ed McMahon and M.C. Hammer have squandered fortunes over the last ten years...
Here's the head of the company to explain how their operation works - you get from 50 percent to 80 percent of the spot price on most jewelry.
It would be interesting to know what kind of a haircut this would be off of a "typical" retail price for the stuff (if there is such a thing). Most people are deluding themselves if they think that jewelry is anywhere near as good an investment as gold bullion in coin or bar form which, today, fetches about $20-$30 over spot.
I wonder if some poor saps mail in gold coins when they might be able to get hundreds of dollars an ounce more simply by going to the local coin shop.