Private Collectibles – Why do it now after a rough 2022!

Why should we own collectibles today?   Inflation is STILL a problem.  According to Markets Insider  https://markets.businessinsider.com/news/stocks/inflation-us-hasnt-turned-corner-yet-fed-rate-hikes-imf-2023-1 In the article, speaking to the Financial Times, Gita Gopinath, deputy managing director at the IMF fund, urged the Fed (US Federal Reserve) to continue hiking interest rates this year until there was a “very definite, durable decline in inflation” in wages as opposed to food or energy costs.  “If you see the indicators in the labor market, and if you look at very sticky components of inflation like services inflation, I think it’s clear that we haven’t turned the corner yet on inflation,” Gopinath said in the interview published Thursday. The IMF’s second-in-command said the fund’s advice is for the Fed to “stay the course” on its restrictive monetary policy. 

In 2022, the U.S. saw the highest real inflation in 40+ years. Now credit limits were pushed to high limits again (2022 year-end data not yet reported) and now the real estate market has cooled a bit too in areas of the U.S.  Is this reminiscent of the 2008-2009 housing market crash?  Back in 2009, the FED had to bail out Wall Street banks and we lost 401(k) and IRA monies..  Hard for some of us…50% or half the value of our retirement money! 

Could this happen again? The answer is no one can know tell it happens. But don’t worry, do not despair because you have a solution.  What is it?  Pretty simple. Just diversify your money now into a real asset that can act like insurance for our money.  Overall, the precious metal, gold was the best performing asset of 2022 compared to any financial market asset class. However, precious metals value is volatile BUT the old “collectible” low premium U.S. gold & silver coins did well to hold their value and grow in 2022.   On average, old gold U.S. Coins grew in value by 10% per year for the last 5 years and old silver U.S. coins grew in value by 20% per year.     Why is this?   Collectible gold and silver coins that were old currency in the U.S. are in high demand as they are no longer produced and are part of a limited population. 

Don’t try to guess the markets or worse yet, your nest egg ALL in cash is a bad idea since we already know real inflation losses are double digits. What does that mean?   I buy my eggs from a local grocery convenience store.  Remember $1.99 or even $2.99 per dozen?  Last week I walked into the same store and eggs were $4.99.  Cash loses value fast and your nest egg needs something that does better than cash in the bank.  

Purchase some collectibles for your monetary diversification.  Call us at 715-318-4653 or stop by to talk more about how you own cash ready, collectibles like gold and silver coins.

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