GOLD, SILVER, ART AND ANTIQUES
by Roy Mackey
Gold...
A lot of people do not know this but the rich often invest in gold, silver, art and antiques. Apparently they do this even more during tough economic times. There are a couple of reasons for this. First they all go up in value eventually and are easy to move around. If the economy dives in your neck of the woods it is hard to move your properties to another part of the country. With gold, silver, art and antiques you just pack them up and move on. Though gold silver and antique prices seem to climb steadily art has the potential to sky rocket in price and often does. This makes art as an investment very exciting. If you were to buy works from fifty different artists and only one hit the big time that could make you enough profit to pay for all your other investments and then some. After all if you look at what works you coulda bought from Warhol or Pablo a few years back compared to now you would understand this.
One of the biggest advantages to these is the fact they are way easier to store than land or houses. This makes them easy to take with you if your country of choice starts to cave in. After all once something like a housing market starts to slide it is pretty hard to get out of it then. You can easily get sucked down the drain with a sliding market like that. There is another advantage to gold silver art and antiques. That is the fact that they are usually bought by the rich and as we all know the rich always have money unlike the working class. The working class spend a lot of their money buying depreciating consumables like TV's, electronics, cars trucks boats etc. Nothing wrong with that after all it is what keeps the world going around. But if the economy dives a bit then they have no money and thus cannot buy your real estate, cars, trucks boats, TV's etc. It is times like these though that the rich will buy up your gold silver art and antiques. They are way more stable and can help weather your wealth through any economic storm. It is also one reason why the rich are rich.
Think about it if you go out and buy a new boat for fifty thousand dollars. First you have to earn way more money than that since the government taxes you on the money you make. So if you factor in that the boat actually costs you more than fifty thousand in pretax dollars. Then if you borrow the money to buy that then you have to add on the interest to what the boat costs also. Those two can put the price you pay for the boat way over fifty thousand. Then you add on storage or moorage fees and it gets worse. Finally though after adding all those fees you still buy the boat and drag it off the lot. The second you do that you have already lost ten or twenty percent as it immediately becomes a used boat. A year later and it depreciates even more. Thus your "fifty thousand" dollar boat is now worth even less which really hurts because in reality you paid even more than fifty thousand dollars in the first place.
Now if you repeat this performance with your car, tv, house, and other doo dads we buy it starts to become more obvious why you aint rich!! How could you be if everything you buy turns into dust within a few years. It is a bit of a vicious treadmill that eats your finances. The rich know this which is why they make sure they only buy stuff that is going to increase in value... at least up until they get rich or well on the way. If you think back to ten years ago where is all the stuff you bought or had back then. If you even still have it what is it worth now? My guess most is gone to the landfill, wore out or you sold off for way less than you paid. Now you might say your house has gone way up in value and depending on where you live that may be the case. But even with your house if you add up what you paid in interest, repairs, taxes and other fees it makes your profit not quite as rosy as it seems on the surface. A good book I read on this years ago was "Your Money or Your Life" I found this a pretty simple book with eye opening points.
Now if you were to buy gold silver art and antiques back then first you would still have them as not many people throw those things in the landfill. On top of that they could very well be worth hugely more than you paid for them. Imagine if you did that with most things you bought. After all a small leak can sink a big ship.
The nice thing about art is you get the ongoing pleasure of displaying and enjoying it the whole time you have it. Good art can inspire and enrich your life in many ways not to mention it's investment potential. Thus if you want to learn more about buying art click this link below.
Silver...
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