An Intoxicating Way to Think About Gold There are many ways to assess the worth of gold, including its dollar value, comparison to the stock market, or whether it beats the inflation rate. Since 1950, a Liechtenstein-based asset management company called Incrementum has another method: how much beer will it buy? And in that measurement, gold is down slightly, but still solid in the long term. Incrementum just released its 12th annual “In Gold We Trust” report, declaring that the precious metal is in the early stages of a new bull market. “From our point of view, stronger inflation tendencies or the abandoning of the rate-hike cycle in the US could trigger an increase in momentum of the gold price,” the authors declare. The 230-page report, available here, is full of charts and graphs and analyses that probably require a finance degree to fully understand. But one of its elements, the gold/beer calculation, goes down easy. For 68 years, the company has tracked the price of a liter of beer at the famed Munich Oktoberfest alongside the price of an ounce of gold. The all-time high, if you’re keeping score, was in 1980, when an ounce of gold bought you 227 German brews. Only nine years earlier it had hit the all-time low of just 48. The total for 2017 was 99, down a few liters from the previous year but still well above the historical median of 87. Reaction to the golden update was mixed. “I have no idea what I just read,” wrote one commenter on mining.com, which reported the news. “But now I want some gold and a beer.”
A Tale of Two Precious Metals Platinum or gold? Right now the first option is on the upswing. Platinum Guild International, which tracks sales around the world, reports that platinum jewelry sales in the U.S. rose 11 percent in 2017 over the previous year, outshining the 3 percent rise for gold jewelry. “Platinum is a natural white metal, and white is popular right now,” says Karen Wood, vice president for service at Dallas Gold & Silver Exchange and one of our resident experts on the subject. “But it has its pros and cons.” First, a look at the pros: Platinum implies prestige (your “platinum” credit card has more benefits than your “gold” credit card) and is more durable than gold, which can wear down or scrape off over time. Platinum is denser and stronger, and its prongs will hold a diamond or other gemstone more securely. That’s particularly important for a big stone. Because it’s used in a nearly pure form, platinum is considered hypoallergenic. Gold is softer and needs to be mixed with alloys – usually nickel or copper – which trigger allergic reactions in some people. White gold gets its white metal look through rhodium plating, which wears off over the years and needs to be refinished. Platinum merely needs to be polished. Now the cons: Even though platinum is cheaper than gold (currently about $900 per ounce versus $1,300 for gold), platinum jewelry can be much more expensive. That’s because platinum jewelry is much more pure than gold jewelry, so you’re paying for more precious metal and less alloy, and may require more workmanship. Platinum jewelry will also be heavier to wear, which not everyone may like. It also can blemish or scratch more easily than a softer, more malleable metal. The harder metal does not hold small stones as well and is more difficult to filagree, or use thin metal strands to create intricate designs. The bottom line? There isn’t just one, which is why you should come in for a test drive and decide what’s right for you.
It’s Not Just a Rolex, It’s a Unicorn If you’re keeping score of the world’s most expensive Rolexes, there’s a new Number Two. Last week at an auction in Geneva, a one-of-a-kind white gold Rolex Cosmograph Daytona sold for $5.9 million, nearly double the predicted price. The watch, made specially in 1970 for a wealthy German who disdained the usual stainless steel and yellow gold, was dubbed The Unicorn for that reason. It was owned most recently by John Goldberger, the famed collector, photographer and author who has compiled many books featuring exclusive luxury watches. He donated the proceeds to Children Action, a Swiss charity that supports efforts to improve the lives of young people around the world. The buyer wasn’t identified. That same auction featured 31 other Rolex Cosmograph Daytonas, and the entire sale garnered $22.2 million. A watch named the Neanderthal because of its oversized registers, or sub-dials, went for just over $3 million, while three others topped $1 million. But they all trailed the all-time Rolex champion, Paul Newman’s Cosmograph Daytona, which sold at auction last year for $17.7 million, largely because of its backstory with the beloved actor. At Dallas Gold & Silver, we also love and cherish Rolexes, though ours sell for a whole lot less. You’ll be proud to have one on your wrist – and perhaps a little less nervous than whoever’s walking around today with that Daytona Unicorn.
It’s a great deal. We’re in the parking lot. What could go wrong? We hate to keep nagging, but some people aren’t getting the message: don’t buy gold in the parking lot! A gold-buying store in Edmonton, Canada, reports that at least 17 people have come in over a two-day period to sell what they thought was gold, only to learn it was shiny junk they got from con artists. “I often get fake jewelry in, but these were all the same type pieces,” said Sara Patterson-Robert. The good-hearted dupes reported similar stories: they were approached by people with hard-luck tales and allegedly gold jewelry they were willing to exchange for a few hundred bucks to get home, or care for an ailing parent, or whatever. The real hard-luck story comes inside the store, where Ms. Patterson-Robert has to break the news they’ve been conned. About 300 miles down Trans-Canada Highway 16 in Saskatoon, police issued a public warning about a nearly identical scam that occurred nearly a dozen times in a week. “Like many fraud cases, the suspects play on victims’ emotions,” the police advised. If you’re looking to buy gold, and there are many reasons you should, please don’t go shopping in the parking lot. At Dallas Gold & Silver, we have great coffee, four decades of integrity – and real gold.
We have carried many items designed by James Avery over the years, and we were sad to learn of the legendary jeweler’s passing on the last day of April at the age of 96. His was a great Texas story: like many of us, he started his journey somewhere else – born in Milwaukee, raised in Chicago – before coming down here to accomplish great things. After serving as a bomber pilot in World War II, Avery taught himself jewelry design and opened a one-man shop in Kerrville, Texas, in 1953. That grew into an empire based on his designs, many of them with religious themes. You can read more about his remarkable life in this New York Times obituary. His legacy will live on in our stores for a very long time.
Gold is a wonderful element that gives us joy, usefulness and value in many, many ways. But this just might be the place to draw the line. A New York-based restaurant/bar chain called The Ainsworth has just added gold-covered chicken wings to the menu. It’s a collaboration between the kitchen and over-the-top foodie Jonathan Cheban, who has actually named himself “Foodgod” so he fits in better when he appears on Keeping Up With the Kardashians. The blingwings are marinated in a batter of coconut butter, honey and chipotle for 24 hours, then fried and dusted with flakes of 24-carat gold. Blue cheese dip comes on the side. Surprisingly, you can indulge in preposterous poultry for a reasonable price. A plate of 10 golden wings goes for $30, while 20 will set you back $60. But to really do 24-carat chicken right (and impress your date), the 50-wing feast comes with a bottle of pricey Ace of Spades Champagne for a mere $1,000. Personally, we’d rather wear gold than eat it, so we’ll stay out of the chicken business for now. Bon appetit! **UPDATE** Comedian Tim Heidecker was inspired to write a satirical song about all this called “Jonathan’s Golden Wings.” You can hear it, and download it for a $1 contribution to the Los Angeles Food Bank, here. So maybe something good will come out of this after all.
Like Grandma always told us: Never buy gold in a parking lot. Kudos to Cody Gleason, a Dallas man who braved embarrassment and went public with his tale of foolishly trading a $3,000 guitar for gold bullion that turned out to be fake. As seen here in a TV news story, Gleason refurbishes guitars and sells them on Craigslist. A buyer offered to trade him gold bullion and arranged a meeting in a parking lot. Gleason brought a magnet that he thought proved the gold’s authenticity, and made the deal. The next day he took it to a gold trader, who gave him the bad news. Police tracked down the scammer, who’s facing fraud charges. Though understandably sheepish, Gleason told his cautionary tale to spread a message that you’d hope everyone would already know. Bring your precious metals to Dallas Gold & Silver, the home of honesty, integrity and value for more than 40 years. Our parking lots are for cars, not for deals.
If you love and appreciate gold, and we bet you do, don’t miss a new exhibit at the Dallas Museum of Art about one of our favorite subjects. It’s called “The Power of Gold: Asante Royal Regalia from Ghana,” running through August. The curators have put together a dazzling collection of over 250 items, including regalia, intricately woven silk kente cloth, ceremonial furniture, state swords, and other significant objects with one thing in common: gold. They all relate to Asante royalty, which ruled the Ashanti Empire from the 17th Century through modern times and still exists as a constitutionally recognized part of Ghana. In addition to the exhibition, the DMA has scheduled special tours, lectures and kids’ activities throughout the run. You can download the exhibition guide and schedule here. Of course, The Power of Gold is also on display every day at our stores in Dallas, Euless, Southlake and Grand Prairie.
There’s a terrible new trend out there that Dallas Gold & Silver is determined to stop. Women are going on social media to display the new diamonds on their fingers – without a ring. “Nothing says everlasting love like burrowing a gemstone in your skin,” Marie Claireproclaims sarcastically in an article on the subject. Here are the painful details: you implant an anchor under your skin, insert a diamond stud, and then pray you don’t snag it on your sweater. PLEASE! DON’T! We can help! If you shop at Dallas Gold & Silver, you can afford the diamond AND the ring. We even do custom settings at prices you won’t believe. You’ll be safe, you’ll be happy, and you’ll have enough money left over to buy Band-Aids and disinfectant to help out any friends who think every trend is a good idea.