Maybe you have been to Atlantic City. Maybe you have been to Las Vegas. Maybe have been to Detroit. Right now Atlantic City in Detroit don’t look anything like Las Vegas, even though Las Vegas took its own share of hits during and after the 2008 financial crisis. This blog article will deal more specifically with Atlantic City however, because even though Las Vegas and Detroit have their own epic tales, Atlantic City as a long and storied past that we as Americans, and investors, and investors in America can learn from. Is this the “after the gold rush” part of Atlantic City’s story? Atlantic City got an early start, and experienced boom and bust along the way, but what will become of the Atlantic City that still stands, somewhat, today?

What Does “After The Gold Rush” Mean? Disaster.

The term “after the gold rush” is kind of an old one, but one that may apply to today’s Atlantic City. You see a gold rush was not necessarily a good thing for a town or territory. Before the gold rush life is normal and people seem happy. When the gold rush begins thousands and thousands and thousands of outsiders rush in seeking quick fortune and instant success and have very little concern for the area and what life was like before the gold rush.

Often Times Mining Leaves Destruction In It’s Wake After The Gold Rush. What Will Atlantic City Look Like After The Gold Rush?

In fact those that appear for the gold rush are often miners, and as we know miners strip up land and mountains and rivers and prairies and they did really big holes that collapse called mines. After the gold rush all that is left is scarred lands, broken dreams, and the financial and political and Geo-related problems that those who participated in the gold rush left behind.

While Atlantic City was never a mining town, plenty of people went to Atlantic City seeking riches and golden success. Some found success, and some found gold, and some found disaster, but that is the story of Atlantic City. Atlantic City is located on the New Jersey coast, and believe it or not, was conceived and somewhat built around the idea of the Monopoly board game.

When Atlantic City began its modest start, it was train tracks that set the city on its way. Railroads built lines into what would become Atlantic City, with the thought of using the new railroad lines to tie Philadelphia together with other large American cities.

If you are going to build a railroad, then you need a place for people that are riding that railroad to stay. The Camden and Atlantic Railroad built a marvelous resort in Atlantic City called the United States Hotel. When this hotel was completed its rooms numbered more than 600, and there were 14 acres of developed land that belong to this hotel. One can say that this is perhaps the beginning of what would become Atlantic City.

At The Time It Was Completed, The United States Hotel Was The Largest In The Country.

As people ventured to Atlantic City, amenities and the hotels and supplied them grew. Indoor plumbing once the norm. Air-conditioning could be had. Since Atlantic City had become sort of a playground for politicians and their rich friends, nearly anything could be had. Card games happened. The drinking of alcoholic beverages was common, even during the years of prohibition. Prostitution happened, and crime happened, but Atlantic City grew.

How To Comeback After The Gold Rush, The First Time? Legalized Gambling.

Fast forward a few decades, and perhaps now we are beginning to see the after the gold rush affects play out Atlantic City. With the invention of the automobile and the plane, and Miami and the Bahamas becoming more popular tourist destinations, Atlantic City began to lose its grip as an American travel to hot-spot. The girls and the beach and the legal booze were not enough anymore. Atlantic City had to reinvent itself, or start paying the after the gold rush Piper. In a bid to reinvent itself, Atlantic City eventually voted to allow casino gambling in 1976. The after the gold rush doldrums were staved off, and the after the gold rush can was kicked down the road, which is where we find it today.

“Boardwalk Empire” Chronicles Early Atlantic City. Steve Buscemi Played The Character Of Nucky Thompson. Nucky Ran Part Of The Boardwalk, During The Boom Times.

As casinos went up, jobs and gamblers came to Atlantic City. Boxing came to Atlantic City. Donald Trump came to Atlantic City. Everybody was coming to Atlantic City. Until nobody was coming to Atlantic City. The truth is wealth and cities both run in cycles. What is there today will probably not be there 20 years from now, or if it is it may not be recognizable.

Perhaps one of the more telling recent stories of Atlantic City is the story of the Revel casino.the Revel casino was a partnership in which Morgan Stanley held 90%. Does the name Morgan Stanley ring a bell? You may be investing with them. Morgan Stanley bought 20 acres of prime land in Atlantic City in 2006 to begin the $2 billion project, four years later they pulled out. Governor Chris Christie offered more than $260 million in tax credits to help the casino open and operate. The casino finally opened in May 2012.

The Revel Hotel And Casino Was A Huge Complex That Occupies 20 Acres.

The Revel was a flop. Ten months later the casino was revalued from $2.2 billion to $450 million. Buyers were sought but not found. The Revel Casino closed it’s doors in September of 2014. I bring this up because all of the bright minds and money managers at Morgan Stanley did not see the after the gold rush writing on the wall, and they poured billions into a failed venture, when there were already failing ventures up and down the boardwalk.

The Revel Casino Complex Went Bust. $2 Billion Turned Into $400+ Million, Which Turned Into A Chained Up Loss.

Sometimes in order to avoid a bust or after the gold rush situation, you need to go your own way and make your own path. Owning gold and silver is one way to start down that financial path. If you would like to discuss owning gold and silver, ITM Trading is here to be of service.