06 August 2011

Turning $400k into $1.2m

Late yesterday the bullion desk manager let me know that one of "my clients" had sold up. By "my clients" she meant clients I knew from when I worked on the desk, which was a long time ago.

This client bought $400,000 of gold about 15 years ago and sold it yesterday for $1.2 million. He and his wife are now in their seventies and are now drawing down on their nest egg.

Sometimes I've asked myself whether working at the Mint is of any benefit to society, whether it is a productive job - we don't make anything useful like cars or food - we just melt and stamp and store metal.

It is days like yesterday however that give me a boost and make me feel like I am doing something useful.

3 comments:

Justin said...

He'll want to spend it quickly, otherwise his million won't buy him even what the 400 grand would have bought him 15 years ago.

David Evans said...

Gold is sometimes best viewed as an anti-cheating device.

No flim flam promises, money printing, or creation out of thin air by interested parties.

Anything that reduces the amount of cheating and corruption in society is invaluable Bron, so keep up the good work.

Pete said...

Right on Justin

Although we don't know what he plans to do with the money. Maybe he has plans for it already?

Paying out $$ to relatives to help them with mortgages, etc.

If just putting it into cash for liquidity purposes, or to draw an income from the bank interest, then i'd say he was totally crazy to sell it all. Sell half, keep the rest as 'insurance'.