New Defeat for Paper Money
September 15, 2011
I spotted a news item yesterday from the Wall Street Journal reporting that Oklahoma City, Okla., precious metals trading and retailing firm APMEX made a security deposit on a New York City lease.
Rather than handing over a very conventional check for a large amount of money, the firm handed over three 1-kilo bars of gold, each of which contains a bit over 32 ounces of precious metal.
APMEX Chief Executive Office Michael Haynes said his company is promoting the use of gold rather than cash in certain instances.
This is music to the ears of gold standard advocates.
What I find more interesting and more important is the very fact of APMEX taking a lease in New York’s financial district for the entire 50th floor of the building located at 40 Wall St.
What would a bullion dealer that operates primarily an online business out of the old Federal Reserve building in Oklahoma City need with an expensive lease in the capital of paper financial assets unless it expects good business there?
That being the case, it would seem the battle between gold and paper assets has clearly tipped in gold’s favor.
As a respectable asset, gold has gone way beyond the symbolic passing of gold bars from tenant to landlord.
And as if gold needed further promotion, the landlord who accepted the bars is one Donald Trump, a one-man publicity industry.
I guess for paper money this means, “You’re fired.”
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