Picture taken by me
In 2007 I began an eBay venture. The financial instability of that time left me uneasy. What could I, as a middle class person of modest means, do to build a crisis cushion? My options were limited. Gold bullion was attractive, but I couldn't afford that. What I could afford, was tiny bits of gold in the form of used gold jewelry. I felt this might be a fool's errand, but it was all I could manage and doing this would serve as a kind of emotional salve.
Protesters in Iceland during the 2008 Financial Crisis
Picture credit: Haukurth CC 3.0 license
The ring you see at the top of this page was one of my acquisitions during my brief buying binge.
Financial Crises as Part of My DNA
It might be said, in a kind of Jungian sense, that going through financial crises is in my DNA. My great-great grandfather, Rudolf, immigrated to the United States because of a disastrous collapse in the European economy. He had been a farmer in Germany. The economic crisis resulted in the pauperization of many farmers and artisans.
View of the Valley Where My Great, Great Grandfather Settled
Robert Havell, 1866. Public domain
Perhaps this new land, when he saw it, reminded Rudolf of the Black Forest in his native Swabia. He put down roots and began farming. His son, my great grandfather, worked that farm. In 1893 another disastrous financial collapse struck.
In the Panic of 1893, people began to hoard gold and a severe depression set in. Among the casualties of that depression were farmers.
Panic at the New York Stock Exchange, May 5, 1893
Picture credit: Unknown author, public domain
My understanding is that in succeeding years, the family farm was nearly lost, but that my grandfather took over and built it up again. He had twelve children. Perhaps it was their labor that helped to see him through the Great Depression of the 1930s.
American Union Bank, New York, August 5,1931
Image credit: U. S. government. Public domain
Depositors cluster outside the bank, which had closed its doors, permanently.
By the time I was born in the late 1940s, my grandfather had sworn off banks. He had no faith in the financial system. His business was conducted in cash. He thrived, but never took out a loan, and never deposited a penny in a bank.
It seems my skepticism about money and the financial system was inevitable, given my family history. This perhaps makes my mini-venture in gold jewelry understandable.
The gold ring at the top of the page cost $51.00. Bidding on eBay started at $.99. I didn't care about the ring. I was looking at gold content. In this case the ring was described as having 4.49 grams of 14 karat gold. I think I paid between $9 and $11 a gram in those days. I stopped bidding if the price went over that, unless the piece was 18K. Then I paid more per gram.
According to Midstates Recycling and Refining, a gram of 14K today goes for about $35.00.
Gold Ring, with Tiny Emeralds and Diamonds
Picture taken by me
I can't find the sales form for this one, but it's rather light so I'm sure I didn't pay anywhere near $100. I was never impressed by the gem content, because I know nothing about gems. I was just interested in the gold.
Pitfalls
There are no pitfalls. I only spent discretionary money. I spread out my purchases, and viewed the whole venture as a sort of hobby that might pay off someday. It is possible I bought jewelry that wasn't 14K, despite the markings. It is possible that I overpaid. But I'm not counting on these trinkets for anything. They're just another really tiny piece of the stuff I'm planning to leave my children.
If there is a crisis, in my lifetime or theirs, maybe these trinkets can be bartered. Also, they would make very nice presents.
Posted Using LeoFinance
Great combination of personal story and larger view on history through your story... you put it together so well. It was a really good read.
Thank you, @borjan :) It's kind of funny that I write a finance blog because I know nothing about finance. But we all live with money one way or another, so it's part of our lives.
Yes :) that makes us still kind of competent ... enough. I'm also very uninformed about a good deal of financial stuff and usually I'm not very interested, but in personal blogs like this, with insight on how it all affects people and when is well written and simple to understand - I enjoy this topic very much.
And also, I'm getting interested in this crypto financial world and developments ... at first, in my first year on Steemit, I understood almost nothing and cared even less ... but now :D the first time in my life I surprise people around me with some financial thoughts I never had before.
It's part of life. We have to eat :))
:D
Hola @agmoore que buen material histórico... en mi país son muy común los negocios que compran prendas de oro con pocos gramos de oro acá son muy rentables... deseo de corazón tus inversiones se multipliquen.🤗🙌
Dear @berlissanoja,
You are very sweet 🌷🌷
Thank you for coming by. I think in hard times, money often loses its value. It's happened throughout history, across cultures. Good idea to have something to trade.
I hope you are feeling better and can join in the collage fun. I really like the horses this week and so have made a very horsey collage.😄
Peace and health to you friend,
AG
I always enjoy your posts A.G. I think you got a good bargain with the gold jewelry and had fun checking it all out to purchase. The gold Ring, with tiny Emeralds and Diamonds is beautiful.
Our forefathers didn’t have an easy life and had many mouths to feed and cloth. My grandmother told me stories of the hardships of the people of her generation. I think they were very suspicious of banks and kept any extra money under the mattress. :)
Thank you for those kind words. Yes, stories from my mother about her family also told of hard times. She was first generation. Her parents immigrated from Sicily.
Funny thing about jewelry...I can't wear it:) I'm allergic to just about anything. Don't even wear my wedding ring anymore. Kept having to take it off.
Stay well and be peaceful (but I think Canadians tend to be peaceful, at least more peaceful than we are in the U. S. these days) :))
Welcome A.G. @agmoore. Sorry you can’t wear jewelry anymore. A lot of people are allergic to the nickel in it.
Everything is peaceful here on the Island and life is going about nearly normal.
Stay save and well my friend.❤️
My mom always says that we should never sell gold and should buy more and pass it to the next generations as a token of love or memory. That's her only explanations 😃 .. Well not hard for me to understand though 😀
I pray your kids never face the crisis and financial safety prevails forever.
Moms are smart...listen to Mom :)
Thank you for your good wishes. I hope your father is doing well.
Not fully but hopefully we will see some change very soon in the few couples of weeks :))
I think gold is a sure investment too.
I wish I could afford real gold, like bars :). But we do what we can.