The majority of the committee thought gold coin investing was worth asking about because certificates of deposit (CDs), Treasury notes and simple savings accounts were arguably losing value after inflation was taken into consideration.
Milwaukee, WI (PRWEB) April 15, 2013
The Langlade County, WI, finance department was recently denied by state Attorney General J.B. Van Hollen its request to purchase approximately $1 million worth of gold coins with a portion of the county’s surplus funds. Van Hollen and the county’s lawyer, Robin Stowe, agreed that gold coins were not a permissible investment according to state law.
The request was made on October 15, 2012, when gold was valued at about $1700 per ounce. Gold has since fallen to the $1550-$1600 range, and the committee is currently looking at its investment options. Jerrold Burns, chairman of the finance committee, said that the majority of the committee thought gold coin investing was worth asking about because certificates of deposit (CDs), Treasury notes and simple savings accounts were arguably losing value after taking inflation into consideration. Gold has risen 11 of the last 12 years and has averaged an 8 percent annual gain over that time.
According to the Milwaukee-Wisconsin Journal Sentinel on April 10, 2013, the committee planned to purchase about $1 million worth of one-ounce, $50 American Eagle gold coins. Stowe noted that each coin would have cost approximately $2,035, but there was no explanation of the origin of that figure, which would represent a 20 percent markup if gold was at $1700 per ounce when the request was made.
"This could set the precedent for other municipalities that want to boost their respective bank accounts," said Arthur McGuire, vice president of Gold Coin. "Our government makes little to nothing from gold coin sales, so it makes sense that they would limit us to bonds and interest-bearing accounts that they can manipulate through the printing of money. It's somewhat of a Ponzi scheme, but since the money in question is county money, there is likely nothing that the finance committee can do."
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