Is it time to buy tangible assets?

[Paul G]

Is it time to buy tangible assets?

Stock market is tanking. The so called experts say the year is going to be flat, with high inflation in the near future. Foreign countries are devaluing the dollar. Federal debt is at an all time record that is unsustainable.

Auction week here in Scottsdale is over. Collector car prices are up across the board. Is that a sign that there is no more money to be made in stocks? Liquid assets like cash either? Are people with money moving in to other things that can retain value during high inflation periods?

What should small guys like us be doing right now?

[AKcharger]

Good question. I'd say home/land would be safe. Gold silver, while intuitively looks appealing it's dropped in price WHILE inflation and nat'l debt has gone up...So it's not a sure thing either 

[Mike DC]

The so called experts say the year is going to be flat, with high inflation in the near future. Foreign countries are devaluing the dollar. Federal debt is at an all time record that is unsustainable.

The inflation is driving the borrowing higher.  Borrowed dollars have been losing value for the last few decades just like earned dollars have. 

(Not to claim that this is sustainable - it isn't.)

 

[twodko]

I would think.....hope? Land/homes would still be a steadfast investment if they could be had for reasonable money and in a location conducive to a reasonably profitable turnover if needed. 

I've always thought having a cache of small value gold and silver coins are good to have on hand........not in a safety deposit box either. I say small coins for real world exchange for whatever goods etc my be required. Can't hurt to have backup......on several levels.
Certainly a much better idea before values went stoopid. 

[Ghoste]

How come all of the monetary experts aren't billionaires?

[Chad L. Magee]

How come all of the monetary experts aren't billionaires?

Usually because the monetary experts play it "safe" and not gain much at a time, rather than risk it all and potentially lose fast.  They tend to be diversified in their investments, so that if one thing starts to fall, not all of their eggs get squashed.  They are also in it for the big picture, not just a fast gain or two.  Granted, the billionaires sometimes have knowledge about things that everyone else does not have, so they can move faster on the money (and with larger amounts) than we can even dream of.  This information comes from a friend who does commodities and money market trading for some of the big boys....

Real estate investing can be problematic, as their are upkeeps that can cost you if you do not pay attention to them.  Location is a big deal and that can ruin your investment if you choose wrong.  Careful on this one, weigh the risks....

As for investing, precious metals are nice, but rare American coins are typically better choices than bullion.  The market is quite hot on them right now, especially early (1790-1850 era) coppers and gold.  *But, do not let my opinion sway you to fully invest in them, I am not an expert in finicial matters by any means.  It is better to see the raw data and determine the route to invest for yourself in mind.*...

In the end, our currency will lose value (buying power), just as any other currency has done over time.  The key is to be prepared for when it happens....

[chargerboy69]

I would think.....hope? Land/homes would still be a steadfast investment if they could be had for reasonable money and in a location conducive to a reasonably profitable turnover if needed. 

I've always thought having a cache of small value gold and silver coins are good to have on hand........not in a safety deposit box either. I say small coins for real world exchange for whatever goods etc my be required. Can't hurt to have backup......on several levels.
Certainly a much better idea before values went stoopid. 

I agree with Tom.

Even a small collection of gold and silver rings or bars. A Liberty safe at home would be a good investment.

Of course there is food, water, gun and ammo storage for the zombie apocalypse. . . . or stupid world leaders who run the worlds economy into the crapper. Seriously though, I am a firm believer in food storage. Especially after the winter we have had here and people run to the grocery store and the shelves are empty.  What happens if the government halts government handout programs, that would be fun.  

[twodko]

I've always tried to keep a sizable surplus of staple goods, water and other "items" to be as self sufficient as possible regardless of the need. I just thinks its a smart thing to do.

Mr. McGee offers some salient observations as well. My thoughts about small gold and silver coins, 1/20th and ¼ ounce, are that they can be used in times where basic raw exchanges for goods or services are the order of the day. In times of societal upheaval no one will give any credence to how rare a coin is. The intrinsic value of a precious metal coin will be what the metal is, its weight and the value put upon it during such times. Livestock, medical skills, metal/woodworking skills, farming/food storage skills et al used as bartering mediums, understood and commonly accepted forms of payment or exchange would become common currency.   (no pun intended )

[polywideblock]

be careful what you say someone will accuse you of being a "preper"   

[twodko]

 

[ws23rt]

The world is coming to an end this time for sure

Ok everyone pull back----peak out the window----now wait.

[68X426]

be careful what you say someone will accuse you of being a "preper"   

Tom is a pepper ? 

[Mike DC]

       

Prepping for an apocalyptic scary future is more fun than prepping for a poor, boring (and realistic) future.  

If things ever do get bad enough for prepping to pay off, it will come only after years of huge obvious warning signs.  People griping that milk costs a dollar too much is not a food shortage.

[68X426]

My reply is simple: fish hooks, tomato seeds and ammo. 

Along with friends who have skills and sound minds, my redneck neighborhood will survive.

[twodko]

O' course I'm a Pepper! Just not as Pepper as I once was.

[ITSA426]

I'm having trouble with the opening statement that "the stock market is tanking".  The few stocks that I own are doing very well and the overall numbers seem to be up.  So far as buying tangible assets, I buy things because I want them and if they appreciate in value that's fine.  Life's too short to worry about dying with the most of anything. 

[Paul G]

I'm having trouble with the opening statement that "the stock market is tanking".  The few stocks that I own are doing very well and the overall numbers seem to be up.  So far as buying tangible assets, I buy things because I want them and if they appreciate in value that's fine.  Life's too short to worry about dying with the most of anything. 

last week was a bad week for the stock market. Over a 300 point drop for the week. http://www.nbcnews.com/business/stocks-slide-again-one-day-after-triple-digit-dow-drop-2D11988419

Dow down another 189 points today.

You cant judge the market by just one week. But the winds of change are blowing. Read the articles. Sure, in any market you will have stocks that go up in a down market and vice versa. Overall, for those of us that have a retirement account to protect, and really any one who has money you have invested regardless of the type of investment, be it classic cars, real property, or cabbage patch dolls, is what this topic is about.

Maybe the answer to the question is to buy more Dodge Charger's.     

[twodko]

Agreed.

Just before the "tech bubble" burst I moved my entire 401k into cash because my portfolio was getting mauled. Best thing I have ever done. I haven't lost a dime since. I pulled the pin and retired from my primary career in 2004. Granted I earn less than $2.00 a month in interest but my nest egg is secure.......as much as that means these days. I don't sweat the market anymore. More importantly I'm comfortable and have zero debt beyond a small mortgage. The big plus is I own a Charger!!!!!!! 2nd gen of course.  

[chargerboy69]

I'm having trouble with the opening statement that "the stock market is tanking".  The few stocks that I own are doing very well and the overall numbers seem to be up.  So far as buying tangible assets, I buy things because I want them and if they appreciate in value that's fine.  Life's too short to worry about dying with the most of anything.  

last week was a bad week for the stock market. Over a 300 point drop for the week. http://www.nbcnews.com/business/stocks-slide-again-one-day-after-triple-digit-dow-drop-2D11988419

Dow down another 189 points today.

 

It is dropping because the Fed announced they are cutting back on the printing press.

The markets numbers are as fake as a porn stars titties.  The one and only reason the numbers are as high as they are is the Fed has been pumping trillions into it for years.  Sooner or later the spigot will need to be shut off. . . .  Thats when the fun begins.

[ITSA426]

Most of the investment stocks I have I've held for more than 15 years.  They have done well and can sink a long ways before they'll be worth less than I paid for them.  I'm not a particular fan of securities and bought them with the same attitude I use for lottery tickets.  It's money I can afford to lose.  I think the question is about buying tangible assets as investments.  Although I may have told my wife that my Chargers are investments, I didn't really buy them with the idea that they are part of my retirement plan.  I think muscle car values will drop off as the generation that grew up with them dies off.  Die cast car collections, guns, art, and most other collectibles may or may not appreciate in value.  Precious metals go up and down, and I know people who have lost their butts buying and selling gold. 

The only way I know to really find out what your assets are worth is to sell them and count up the cash.  That's how we measure the value of investments.  Like Tom, I think a better retirement plan is to live debt free and cash heavy.  Of course it's very hard to get a return on cash that keeps pace with inflation.

I'm not trying to rock the boat here, just getting in my two cents worth.

[Chad L. Magee]

Dr. Magee offers some salient observations as well. My thoughts about small gold and silver coins, 1/20th and ¼ ounce, are that they can be used in times where basic raw exchanges for goods or services are the order of the day. In times of societal upheaval no one will give any credence to how rare a coin is. The intrinsic value of a precious metal coin will be what the metal is, its weight and the value put upon it during such times. Livestock, medical skills, metal/woodworking skills, farming/food storage skills et al used as bartering mediums, understood and commonly accepted forms of payment or exchange would become common currency.   (no pun intended )

It is true what you said if the situation becomes very dire.  However, rare coins can give you an advantage if the situation does not get that bad overall.  The trick is to buy rare/valuable coins on the cheap.  One trick I learned as a coin collector is to look in dealer's silver junk boxes for deals at little or no premium over silver scrap value.  I still have a real 1916 D winged liberty "Mercury" dime in AG-G condition that I cherry picked out for the price of fifty cents back in the early 1990s, not to mention a couple of 1921s for the same price.  Check the current values to see what I mean.  The silver value for them is around $1.50 or so right now.  (I have them put away in a very secure bank, as well as hidden more in various locations out of state just in case something hits the fan on a large scale disaster.)  Rare coins can give a premium value over scrap, something that most bullion forms do not do.  The key is to be smart in your investing and learn exactly why/where/how to cherrypick the right ones on the cheap....

[ITSA426]

I agree Chad.  In stocks I think the principle is "buy low - sell high"  and I'm sure that goes with anything.  If buying something as an investment, like coins, the investor should be as educated as possible before wading in.  Other times it just takes dumb luck.  The stock market has so many variables that it seems a poor investment vehicle if security is important.  Cars, antiques and art would also be better investments if the buyer is informed, and aware that he might lose all or part of the investment.  I still prefer cash, but the problem is cash doesn't appreciate very well by itself.

[twodko]

All true.

[Indygenerallee]

Rare coins won't put food on the table when other folks have no money to buy the said rare coins.... buy AMMO!!! and make sure your rifles are clean!! 

[Paul G]

For me, mutual funds are the best bet. I have lost enough money in common stock to build me a big block, seriously. I dont play that game anymore. I moved the lions share of my 401K in to a fixed income fund 2 years ago. The market went up 30% since then, my K went up 3%, but I can sleep at night knowing it is safe.

Problem I foresee is inflation rearing it's ugly head. With all the money that has been printed in the last 3 years inflation is coming. No way around that fact. Money sitting in cash earning 3% will loose value, wont keep up with the coming inflation rates. What to do? 

Back in the 70's when inflation was in the double digits interest rates were high as well. CD's were paying double digits. Will it be the same way in the near future?