Tuesday, May 18, 2010

Gold Layaway

It looks like gold is going "mainstream". Note the description "cash-strapped" below. The "reverse mortgage" and home equity loans have played out, now we're monetizing whatever is sitting around in the house. Will Ebay have a new boom as the cash-strapped consumer starts selling their stuff??

CHICAGO (Reuters) - "Sears Holdings Corp , which expanded its layaway program to help cash-strapped consumers pay for purchases during the recession, is now helping its customers exchange their jewelry for cash as gold prices soar. The new service, available at the jewelry departments of Sears and Kmart stores, allows customers to send their gold and silver items to Pro Gold Network, a company that buys precious metals from consumers."
Source: ABC News

First my buddy Magoo bought 3 Krugerrands last week, and now the retail chains are tapping into the consumer's assets for cash. Is this a sign of a "golden top", or have we only just begun? I'm sticking with my prediction that at "the bottom", the Dow Jones Industrial Average will be equal in price to ONE ounce of gold. Will that be 6000, 5000, 4000, or 3000? I don't know. I'm sticking with 4750.

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