In the news of late, there has been a great deal of speculation as to just how the economy is set to unfold in the coming months. No matter where you turn, few are saying that we will soon get out of this economic downturn. They are looking at things like the aftermath of the global pandemic and then Russia’s invasion of Ukraine.
With all the uncertainty, are you wondering what assets would be safe to invest in without knowing what lies ahead? While this is far from financial advice, you might be interested in these assets that some people believe will hold their value well, even in a recession.
Cryptocurrency vs. Paper Currency
Let’s look at the United States currency as an example. We are no longer on a gold or silver standard, so the paper currency in a major recession or depression could be worth a lot less than it is today. The commonly accepted ‘value’ they have is that the notes are backed by financial assets the Federal Reserve Banks pledge as collateral, but the true value of those assets are hotly debated.
Some believe that Bitcoin or cryptocurrencies hold more value than traditional paper currencies. While there is much to be debated on this subject too, it’s ultimately up to the individual to decide what’s right for their financial future.
Gold, Silver, and Precious Metals
While the prices of precious metals will fluctuate to some extent, the overall graph continues to show an upward curve. To get a better picture of this, consider the price of gold per troy ounce was $274.50 in the year 2000. Today, in 2022 the price is $1815.59. In the past 22 years, we have been through what is now called the Great Recession and then 2+ years of a global pandemic. Look at this graph to see how the price of gold rose significantly during the uncertainty of Covid 19.
Collectibles and Sports Memorabilia
The key to finding assets that will hold their value during uncertain times is to realize that there will always be people with money who will accumulate things such as works of art, sports memorabilia, and collectibles. Boutique designer knives for example are not mass produced and are more sought after than your standard variety. All aspects of production of KRUDO Knives’ designs are overseen by Louis Krudo — relentlessly, meticulously, verging on OCD, mixed with odd hours and lots of hot coffee.
When it comes to sports memorabilia, fans are willing to invest millions in collectibles such as the jersey Michael Jordan wore in the 1998 championships. It just sold recently for $10.1 million. Now, that’s an investment based on an intelligent understanding of how sports memorabilia can gain value.
Munitions, Weapons, and Militaria
Consider military and assorted collectible munitions such as Pat Garrett’s Colt revolver that killed Billy the Kid. It sold for $6 million, the highest price ever fetched at auction.
Knives, guns, militaria, and even first-generation planes hold value beyond what you can imagine because there will always be collectors with the money to buy them and a passion for their collection.
It is imperative that you learn to buy from a point of intelligence rather than from the heart. It is one thing to love the assets you are investing in but if they will not steadily gain in value, you’d be making a poor investment.