Labor & Employment Law

If your gold is rusting, you?ve got a problem

By Dobin & Jenks

As readers of this blog know, my sister is a bankruptcy lawyer. She was recently appointed the trustee of a bankrupt jeweler who appears to have been selling gold bars to customers. Or at least they thought they were buying gold bars.

She had a conversation with a customer of the jeweler who told her how glad he was that he was not ripped off. After all, he had his gold bars at his home. He then proceeded to ask her if it was normal for gold to show rust. When I heard that question, I could not contain myself.

I?ve said this before, folks, there?s no magic bullet. If the events of the past 2 years have demonstrated anything, it?s that the so-called ?experts? couldn?t find their butts with two hands and a road map. Ponzi schemers take advantage of every investor?s dream ? the next Microsoft or Google is out there waiting to be discovered. Or that the next genius has found an undiscovered investing technique.

Ultimately, the wheels come off and the investors find themselves hoping that the gaudy baubles purchased by the crook can be sold for ten cents on the dollar. That?s what?s happening to the Madoff investors right now.

Bottom line ? if you think your gold will rust, don?t buy it. If you?re told that the gold is ?special,? you?re being lied to.

Full post as published by The Law Planet Blog on November 03, 2009 (boomark / email).