Company forced to pay rent in Gold in: Subjects › General Economics |
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"A landlord can enforce a clause in 1912 lease requiring that rent be paid in gold coin for a landmark building in Cleveland, a federal appeals court ruled Wednesday."
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I know exactly where this building is. If you're a old school Clevelander, it's most notable because of the famous Christmas displays. If you're young, it's the home to radio stations including 92.3. And it was the location of the fictional store in The Drew Carey show.
edit: fixed minor grammar errors.
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"The building is owned by 216 Jamaica Avenue LLC, which filed a breach-of-contract lawsuit in 2006 against S&R demanding rent equivalent to the value of 35,000 1912 gold coins. S&R has paid $35,000 annually in U.S. currency since assuming the lease in 1982 and balked at paying what would be a much higher amount. The lower court, finding for S&R, refused to enforce the gold clause....
The amount of gold that is due and owing is 1,693 ounces," said Thompson. "If the price was about $900 an ounce, that would be approximately $1.5 million annually."
216 JAMAICA AVENUE v. S & R PLAYHOUSE
increased the rent in periodic intervals until it reached $35,000 in the eleventh year, where it remained until the end of the lease. The lease also contained a “gold clause,” which provided that “[a]ll of said rents shall be paid in gold coin of the United States of the present standard of weight and fineness.”
I'm guessing they missed out on 35% off gold on eBay...
BMRisko said:I'm guessing they missed out on 35% off gold on eBay...
That is a really clever idea! A quick look on ebay shows that the gold prices are way above market at least what you get if you look up gold online. Can someone explain how gold trading works?
thinwallet4d said:BMRisko said:I'm guessing they missed out on 35% off gold on eBay...
That is a really clever idea! A quick look on eBay shows that the gold prices are way above market at least what you get if you look up gold online. Can someone explain how gold trading works?
Gold trading and selling gold on eBay are two totally different things. Both are done by idiots, but spectators seem to trade the "paper" gold on the market. People on eBay simply have these ideas like those of the housing market. If it goes up to a certain price, they are unwilling to sell any lower than the top. Few people seem to take into account that, being a commodity, gold can lose value over time as well.
PorStaker said:thinwallet4d said:BMRisko said:I'm guessing they missed out on 35% off gold on eBay...
That is a really clever idea! A quick look on eBay shows that the gold prices are way above market at least what you get if you look up gold online. Can someone explain how gold trading works?
Gold trading and selling gold on eBay are two totally different things. Both are done by idiots, but spectators seem to trade the "paper" gold on the market. People on eBay simply have these ideas like those of the housing market. If it goes up to a certain price, they are unwilling to sell any lower than the top. Few people seem to take into account that, being a commodity, gold can lose value over time as well.
I see. thank you for taking the time.
I guess i'm an idiot "spectator" who just made 12 grand buying and selling gold coins on eBay last month.
VerbalK said:I guess i'm an idiot "spectator" who just made 12 grand buying and selling gold coins on eBay last month.
Of course not. The people you made the 12K from are!
VerbalK said:I guess i'm an idiot "spectator" who just made 12 grand buying and selling gold coins on eBay last month.
Care to explain how you were able to do that so easily with gold tanking.
jdopple said:Care to explain how you were able to do that so easily with gold tanking.
Selling the coins on eBay before you buy them, and then buying them later when they're cheaper. Sounds like more work than just shorting GLD, but whatever works.
xerty said:jdopple said:Care to explain how you were able to do that so easily with gold tanking.
Selling the coins on eBay before you buy them, and then buying them later when they're cheaper. Sounds like more work than just shorting GLD, but whatever works.
Making the assumption that you are going to be able to buy whatever you have sold at a cheaper price. 
Yep, sounds like shorting to me. Of course, you could be doing something else like selling what you have just fenced, not that I am saying that stuff sold there is rather "warm", although a buddy who is a cop will tell you that. 
I believe what Mr. Kint was getting at(VerbalK) was that for a while Live.com was offering 25-35% CashBack for purchases on eBay. All you had to do was buy a gold coin for $1000(receive $250 CashBack) go sell gold coin at local store for $900 for a net of $150 dollars. Do it enough time and you get a brand new car
Thanks Microsoft!!!
Mark
jdopple said:VerbalK said:I guess i'm an idiot "spectator" who just made 12 grand buying and selling gold coins on eBay last month.
Care to explain how you were able to do that so easily with gold tanking.With the live.com/paypal CashBack, as did many others.
mikeywl said:jdopple said:VerbalK said:I guess i'm an idiot "spectator" who just made 12 grand buying and selling gold coins on eBay last month.
Care to explain how you were able to do that so easily with gold tanking.With the live.com/paypal CashBack, as did many others.
I'm not sure how you make 12 grand 200 dollars at a time with an offer that may not even pay off.
Sounds like it may be bs
jdopple said:mikeywl said:jdopple said:VerbalK said:I guess i'm an idiot "spectator" who just made 12 grand buying and selling gold coins on eBay last month.
Care to explain how you were able to do that so easily with gold tanking.With the live.com/paypal CashBack, as did many others.
I'm not sure how you make 12 grand 200 dollars at a time with an offer that may not even pay off.
Sounds like it may be bs
May be?????? Huh? I think we can rest assured that it is!
"Few people seem to take into account that, being a commodity, gold can lose value over time as well."
The fallacy is that gold a NOT a commodity. The total amount of gold never decreases or fluctuates but rather increases at a very slow rate over time. One cannot say the same about oil, soybeans or even real estate. Gold is closer to the US dollar (a currency) except that the amount of US dollars increases at a very fast rate over time. In fact, it seems that the US dollar is more of a commodity to be consumed rather than saved (or "hoarded" for those who do not believe saving is a positive thing). Like oil, we 'manufacture it' and 'consume it' (spend it). Like oil, it is worthless unless it is consumed (spent). Saving US dollars is like saving soybeans, as time passes its value is lost and it becomes worthless unless consumed (it spoils). Hence we need consumption to make the US economy run because the main commodity is the US dollar and it spoils quickly. If everyone started to save (like now), then that will surely start a recession. Hence we will probably see another "economic stimulus" check and we might as well just take tax payers money and give to the corporations and skip the middleman (those receiving the checks). This ensures the checks are spent and keeps the economy going.
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