U.S. Gold Reserve: Cash4Gold's Offer Price $240 bn
Source: Commodity Online (6/29/09)
"Cash4Gold. . .announced an offer to purchase the U.S. national gold reserve for $240 billion."
Cash4Gold stated in a press release that it learned of the federal government's plan to turn the nation's gold into cash after the Onion News Network broke the story at the Radio and Television Correspondents' Association Dinner in Washington last week. President Obama and scores of other political and media leaders were on-hand as The Onion aired a video news segment announcing the emergency economic plan aimed at helping the United States pay off its debts.
Appearing on The Onion to explain the government's plan to work with Cash4Gold, Deputy Treasury Secretary Edward Kuehnel estimated the value of the pure gold bars that comprise the U.S. federal gold reserve at $200 billion. Cash4Gold's unprecedented $240 billion offer reflects the full melt value of the U.S. stockpile, plus an added 20%. Melt value refers to the value of actual precious metal contained in an item that a refinery can extract and recycle, and does not account for the decorative, artistic, historic, or sentimental value of a given item.
As part of a current promotion called Gold Rush, Cash4Gold is paying an additional 20% on all items received before July 4. A transaction concluded with the U.S. government would put Cash4Gold 240,000% above its advertised goal of purchasing $100 million in gold by the July 4 Independence Day holiday.
Treasury Secretary Timothy Geithner devised the plan to sell the federal gold reserve after viewing one of Cash4Gold's commercials on television, according to the Onion.
"It would not only be a privilege," said Cash4Gold CEO Jeff Aronson "but a once-in-a-lifetime opportunity for Cash4Gold to do its patriotic duty by helping bolster the U.S. economy."
Cash4Gold expects that it would need to mobilize every one of the 300-plus employees at its new, highly secure processing facility to handle a shipment of this size. The postage and insurance rates involved in such a transaction would provide an additional economic stimulus above and beyond the cash received by the government for the gold.