Politically, you can say our nation has never been more divided. You can say it, but you’d be wrong. Though the discord today certainly seems irreparably divisive, it doesn’t hold a candle to the days leading up to and during the Civil War. A visit to the Abraham Lincoln museum and library in Springfield, IL exemplifies that. An entire exhibit is devoted to political cartoons from countless newspapers eviscerating Lincoln the candidate and then-president....
Consider that fully half the entire nation would have received a hero’s reception had they succeed in killing Lincoln. He dodged that bullet during the entire war but, just six days after Lee surrendered to Grant at Appomattox, was assassinated. Our 16th president has since appeared on billions of pennies, five-dollar bills and collectible postage stamps.
It can be argued the conflict today is between the “haves” and the “have-nots.” While there are certainly many titans flush with millions of dollars, in reality, the distribution of wealth has never been greater. Examples of that might be seen at cost-saving clubs the likes of Sam’s or Costco.
Some years ago, a good friend of mine was shopping at a Sam’s Club in the Midwest. As he turned a corner, he ran into the CEO of one of the largest publicly-traded electronic companies browsing the aisles. The man was worth billions. Being acquainted with the CEO, my friend said hello and noted how surprised he was to see him in that store. The CEO quickly pointed out how much he enjoyed a bargain just like the next guy. In fairness, the vast majority of shoppers at those price clubs are usually us poorer “next guys,” not gajillionaire CEOs. But, there he was.
Last week, the Costco chain gave a golden nod to the everyman when it announced they were initiating the sale of one-ounce gold bars. At the time, the base gold “spot price” was a bit north of $1,900 an ounce. The Costco price was under $2,000 for a one-ounce bar – a very good deal.
Though most price club shoppers still scrutinize over saving a buck or so over a package of candy bars, this recent offering suggests they also have surplus cash because Costco quickly began to run out of gold. The rush was on. The discount chain had to impose a limit of two bars per customer meaning a cap of $4,000. That’s a lot of money for a “next guy” to drop on speculation.
Of course, everyone is entitled to dream. My only advice would be to triple-check the tax laws in each state. You see, many states don’t tax gold bullion or gold coin purchases. Others do, or will tax some amount. If a state tax is five percent, that can translate to an extra $100 which would quickly wipe out any lucrative savings. It’s always better to buy in a no-tax state, in-person or by mail-order.
During the Civil War, gold and silver, in similar bars or circulating coins, were king. Paper money was in serious question – particularly in the south – where the outcome of the war and the southern treasury was unknown.
As we know, Grant proved victorious. He was immediately appointed the job of Secretary of War. Four years later, he ran against Andrew Johnson and assumed the mantle of President of the United States. It was, perhaps, a precursor to Dwight Eisenhower leading the US to victory in World War II and then also becoming president.
Today, we occasionally see our $50 bill featuring Grant’s impressive portrait replete with his ubiquitous beard. This month, the same is true on a new, one-ounce silver medal issued by the US Mint. Eighteenth in the ongoing Presidential Medal Series, the pure silver piece features his portrait and the inscription, “Ulysses S. Grant” on the obverse. The reverse includes the dates of his two terms as president.
Similar to the gold bars being sold at Costco, the new Grant medal is made of gleaming precious metal. Dissimilar is the price markup. As of this writing, the spot price for one-ounce of silver is under $22. The cost for the medal from the US Mint is $75 – more than three times the spot price. Of course, it does come in a handsome display holder. Just don’t plan on seeing it discounted at a price club store anytime soon.
For more collecting information and advice, log on to: http://prexford.com/.