Over four years ago I met world-renowned numismatist, Steve Contursi, and within 30 minutes of conversation I handed him a check for $80,000. Like most people, you’re probably wondering if I’m suffering from some kind of mental illness. In order to perhaps convince you otherwise let me take you back in time.
Perhaps at no other time in modern history has there been so much confusion and uncertainty for the typical investor. In just the last 10 years there have been bubbles, crashes, recoveries, and run-ups in a number of markets. We have created billions of dollars via Quantitative Easing, kept interest rates at all-time lows, and managed to stave off inflation.
Don't buy into the fear in the news! Many of these fears are being misconstrue
The buzz right now among most investors and virtually every economic commentator is on interest rates. It seems that at this point it's not a matter of if – but when – the Fed will begin raising rates with the majority sensing it may happen sometime between September, 2015 and Q1 2016. The last time the Fed raised rates was nearly 10 years ago in June of 2006. So needless to say, it's been a while since we've seen this shift in policy, and at this point there are a lot of guesses on how the economy and various markets will react.
The Internet is full of apocalyptic stories about the US economy. If you believed everything you read you would think that the US dollar is about to be dethroned, our debt situation will get out of control, and hyperinflation will ensue. But as Adam Smith once said, "there is a great deal of ruin in a nation." What Smith meant is that economies can absorb quite a bit of punishment and keep on ticking. Here I'll explain how despite America's very real and serious problems, investors should be skeptical of get-rich-quick schemes suggesting that gold is a good hedge for the turmoil ahead.
Best collectible investment in 2014? Written By Robert Frank | CNBC (*Excerpt from article) Full Article: http://www.cnbc.com/id/102236877 Investing in high-end collectibles has been more lucrative than investing in stocks. Over the past 10 years, the Knight Frank Luxury Index (which tracks collectibles from cars and art to stamps, wine, coins and furniture) is up 182 percent while Dow Jones is up 62 percent.
One of the tenants of wise-investing – and indeed in one’s approach to life – is to “not put all your eggs in one basket.” The last few years give us a clear example of the dangers that exist when one’s portfolio is too heavily in concentrated in any one asset; look at the dramatic shift in prices seen in stocks, precious metals, and real estate! With the volatility and uncertainty currently displayed in many conventional investments, astute investors are actively looking for ways to protect themselves by diversifying their holdings and bringing in assets that offer non-correlation to their existing positions. “Non-correlating assets” has become the buzz term after the most recent recession. This is not a new concept, but after the financial crisis in 2007 investors have become cognizant of this. To many people the idea of investing in rare coins is a new concept, but it is, in fact, a time-tested method for preserving wealth generationally. Owning assets that are limited in supply and carry a high demand due to their intrinsic value is a strategy historically shown to protect and grow wealth. Many investors understand this strategy as they have seen it throughout their lives without realizing it. Imagine purchasing a Picasso, Monet, 1955 Ferrari, or downtown property in most urban areas 30 or 40 years ago! The new thing about investing in rare coins is that individuals now have a trusted ally in this space.
