After enjoying a big breakfast on a sunny morning, Zane Blackwood was at home, planning his company's next big steps. He had decided to expand his company, but he had to be careful. He had to figure out how to start, which companies to buy, and how to do it all. He knew that money alone couldn't solve every problem.
"Good morning, boss!" It was Zane's personal lawyer, David copper, coming for a visit.
"Please wait in the living room downstairs," Zane called from upstairs. "I'll be down in a few minutes. I just have to finish something up."
When the boss spoke, what could the lawyer do? He waited.
Before long, Zane took a quick shower, got dressed, and went downstairs to meet him.
"Good morning, Attorney Copper," Zane said with a friendly smile. "I hope you're bringing me good news."
Zane sat on the sofa and asked his maid to bring him a cup of coffee. He also ordered one for Copper, since he had been waiting so patiently.
"Boss, it is indeed good news," Copper said with a smile. But then he looked at his cup. "Boss, no offense... but you're a billionaire. Could you maybe get some better coffee for your guests? This instant stuff from Nestlé is... well, it's not very good."
Hearing this, Zane burst out laughing. He wasn't embarrassed at all. "Hey, you got me!" he laughed. "It's not that I'm stingy, I just really don't care for that super-fancy coffee. I don't see what's so great about coffee beans that cost hundreds of dollars. To be honest, I think this instant coffee works just fine!"
After speaking, Zane took another happy sip from his own cup. He wasn't lying. He really did have simple tastes.
Copper shook his head, smiling. "Well, I won't argue with you there, boss. But you were right, I do have good news. It's about the money from your company, Gale Capital."
"Oh? How much is it?" Zane asked, leaning forward.
Copper continued, "You moved one billion dollars from your overseas account. My legal team and the finance company worked really hard. We moved the money through a few different states, and it's all safely in your U.S. account now. After all the paperwork, we paid a total of $260 million in taxes."
Even though Zane was prepared for it, hearing that he'd paid $260 million in taxes still made him wince.
"Ouch!" Zane groaned. "Darn it. The U.S. government didn't do anything, and they still took a huge chunk of my money."
Copper explained, "Boss, we did a good job. The normal tax would have been 35%. We got it down to 26%. If we had tried to pay any less, they would have taken us to court."
Zane nodded. He knew Copper was right. He wasn't really being stingy. Nobody likes paying taxes, especially when it's that much money. Making money was one thing; giving it away was another!
...
One billion dollars, minus the $260 million for taxes, left Zane with $740 million in cash.
"Finally," he thought, a huge smile on his face. "Now I can really do something big!"
As soon as the money was ready, Zane called his assistant, Alexander. He told him to get all the bosses from his bank, California Standard Bank, together for a meeting that afternoon.
At the bank meeting, Zane got straight to the point.
"Everyone, the reason for this meeting is simple," he said. "I'm putting $400 million in cash into this bank. I want to use $20 million of it to upgrade all our bank branches and build new ones in other cities. I want to use the other $380 million to buy gold for me. And remember, I don't want 'gold futures.' I want the real, physical gold. It will be a backup for our bank and a long-term investment."
When he finished, all the bank bosses just stared at him. They were puzzled and confused. Some of them even thought Zane was being reckless. Why buy gold?
"How much money can we make from gold?" one boss muttered to another.
"Exactly," the other one whispered back. "The boss is still too young. Hasn't he seen the price of gold lately? It's been going down for years. This is a bad idea."
Their voices were low, but Zane heard every word.
He just smiled to himself. It's okay, he thought. They don't know what's coming.
...
This was Zane's advantage. He knew the future.
The bank bosses were right about the past. The price of gold had been falling for almost 20 years. From 1980 to 1999, the price had dropped from $850 to $251. So, of course, they were worried.
But, Zane knew what was going to happen next.
He knew that the internet "bubble" was about to pop. When it did, everyone would get scared. And when people get scared, they start buying gold because it feels safe.
Zane knew that from 1999 to 2011, the price of gold would skyrocket. It would go from $251 all the way up to $1,912.
"If I don't invest in gold now, when will I?" Zane thought.
He would make more than seven times his money back. It was a perfect, safe, and super-profitable investment. How could he pass that up?
"I have other plans for the rest of my money," he thought, "or I'd buy even more gold."
Plus, putting all this money into his own bank would make it much easier and cheaper to buy other companies in the future. It was a very smart plan.
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