I can’t count the number of times a client, friend or family member has asked me if they should be investing in gold. Stop and consider.

Our nation’s economy has nosedived from heights where it hadn’t been before and in doing so a a new industry has formed—the "Buy Gold Now" pitchmen. They can be found in every media proclaiming the "SKY IS FALLING!" and your economic lifeline is gold. Not only do they try to scare you into buying gold, but to buy it today before the price soars upward and you miss the boat. What would the price of gold be if noone was listening or acting on their message?

Maybe you weren’t around in 1980. It was a wild time economically in this country. It was a time of the modern gold rush. Everyone had to have gold as a hedge against rampant inflation, which the pitchmen and pundits claimed would last far into the future. The price of gold soared from around $30/oz to a dizzying high of $850. Fortunately for our country and citizens inflation was corralled by changes in our monetary policies and gold prices fell to around $250/oz in 2001.

David Moratta says, [gold] "lost 69 percent of its value over a 21 year period for a consistent annualized loss of 5.5 percent. It didn’t return to $850 until 2008, 28 years later. That $850 in 1980 had the same buying power as $2,249 in today’s dollars. Gold trading at $850 an ounce then was like gold trading at $1,000 more than its current price (around $1,300/oz). Those people who purchased gold in 1980 have lost over half their buying power during a 30-year investment."

Gold can be a hedge against inflation. "On average it stays constant, but only on average", says Moratta. Over the past 40 years gold prices have sometime swung wildly.

If history is any precursor, will you be satisfied with an investment that grew less than 50 percent since 1980 while inflation rose 165 percent or more?

Remember, it may be pretty to look at and lovely to behold, but gold can leave you feeling mighty cold.

Add a comment

Most were excited when we found out tax tables were changing….that meant more money in the paychecks!!

The IRS is now estimating 15.4 million taxpayers could unexpectedly owe taxes for 2009 as a result of the tax table changes.

Add a comment


Here is a great tip for business owners with websites: Always own your web site domain! Never allow an outside service (such as IT service) to register your company’s web domain in their name. This was a lesson we learned the hard way.

Add a comment


We are excited to launch the new website for Small Business Specialists! Our interactive blog and forum will allow business owners to:

  • Stay up to date with tax & accounting tips and deadlines.
  • Interact with others in the business community by sharing your tips, thoughts, and experiences
  • Download frequently used forms & brochures
  • Follow SBS on Twitter and Facebook starting in January 2010

If you are a current client and would like to add your logo and website to our client page, email the logo and web address to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  We hope you find this website to be a valuable tool. Your feedback is important to us so please, drop us a line.

Add a comment


Did you know? You can create your very own SBSVB.com account! Sign up now to interact on the Message Boards, post comments on the Blog, and get access to members-only content!

Create My Account

Client Testimonials

Inter Coastal Steel Erection of Virginia, Inc.

"SBS has truly simplified my life by simplifying my business. I run a crew of 15 men. My time is much better spent on the jobsites than behind a desk. SBS takes care of all the administrative and accounting aspects of my business. I focus my energy and attention on the field where the profit is to be made."

Van Crain
Inter Coastal Steel Erection of Virginia, Inc.