Gold Rush, Cash to Follow For Phelps

As the Olympics come to an end, Michael Phelps has another gold rush headed his way.  This time – the gold is worth mega bucks, and he’ll be able to turn it into cold, hard cash.

After setting a new gold standard in Beijing, the advertising industry has taken notice of Michael Phelps.  Not since Tiger Woods, has the sports marketing industry become so enamored with an individual athletes.

Last week’s USA Today interviewed several professionals in the sports marketing and advertising profession to get the industry’s feedback.  Apparently, Phelps is looking at a variety of opportunities including endorsement deals, TV commercials, licensing, and public speaking gigs.  Phelps mother, Debbie, is also being approached about a book and was already dubbed the official “Baby Mom” of the Games by Johnson & Johnson.

The eight gold medal win could be worth up to $50 million.  Phelps currently has sponsorships with Visa, AT&T and Speedo that will more than likely carry over to the 2012 London Olympic Games, where Phelps has already stated he will be swimming again.

Be a winner!  Go for the gold!  Check out the prices we pay for your gold at www.cash4gold.com.

 

Gold - Better Cash Than The Dollar?

This week, Amateur Economics wrote a blog entry this week about our favorite topic – Gold! The blog compares the continual decline of the dollar in conjunction with the cost of gold.

According to AE, the dollar has lost 81% of value since 1971. Measured against gold, the dollar has lost 95% of value.

Until August 15, 1971, a US dollar represented backing of 1/35 ounce of gold. By 1973, following the Nixon administration, the dollar’s value had sunk to 1/64 of an ounce of gold.

The blog asks the question in today’s shaky economic situation, “Can gold lose dollar value even as the dollar itself loses purchasing poser?”. AE says yes, and that we have the Fed to thank for this – due to the stock market bubble bursting followed by the collapse of the real estate market. As a result of all of this economic meltdown, gold and the dollar could “simultaneously weaken”.

Consumers have flooded to gold as economic uncertainty has increased. The last peak of gold was on March 17 for $1,011 an ounce. The ‘lows’ recently have reached about $835 and could possibly go lower, however economists believe that we have not seen the peak of gold as measured against its 1981 price adjusted for inflation.

AE goes on to describe that the two factors that help the price of gold are (1) inflation and (2) war. To read the entire article, click here.