How To Really Appreciate Your Money
Have you ever asked yourself, “What is my money worth?”
Well, it is worth exactly what you can trade it for.
Money is a medium of exchange. For instance you send us dollars and we, in turn, send you gold. Then you at some point in the future exchange your gold for either the going currency and/or for goods, services, and shelter.
Anything can be money as long as someone perceives the object to have value. So, if you have a Rembrandt, you can exchange it for a quite a nice house. There are millions of people worldwide who would eagerly accept that transaction. Or, a corporation can exchange some of its own stock for ownership in another company. You get the idea – money is an object with stored value that can be exchanged for the things of life.
However, money never sleeps. It is either:
1. Appreciating
or
2. Depreciating
These are the only real criteria to understand about any asset class – are they gaining or losing value as a trend over time.
The US Dollar has been steadily depreciating for 97 years (a 1913 dollar has 4¢ of purchasing power today). Annually, according to trusted and independent analysis, we are experiencing about a 9.4% inflation rate in the US.
Help!! We are forced to seek shelter from the persistently weakening dollar or we will gradually grow poorer each and every day. Fortunately, the market place has provided us some really good and choice alternatives:
There it is right there. That’s how to really appreciate your money power. Over a very long trend line gold and especially rare coins have massively outperformed stocks and dollars as investments and stores of value.
According to a recent Wall Street Journal article, “…many collectors also see high-end coins as a viable asset class at a time when they’re dismayed by stocks, bonds and other investments amid worries about the economy and the long-term direction of the dollar. Historically, high-end coins have fared well as an asset. The PCGS3000 Index of rare coins has returned an annualized 11.3% since January 1970. During that same period, the Dow Jones Industrial Average has gained about 6.5% annually.”
So in a nutshell, during this time period we find:
Rare Coins – 6000% Appreciation
Gold – 2500 % Appreciation
In fact US Dollars are one of your very worst investment choices. During the same time frame, that original $1000 in 1970 has dwindled to the equivalent of $181 in 2009.
The coins at the focus of today’s activity have generally held their value or are rising, either because of their gold value or because of their rarity. One example: A $20 U.S. Saint-Gaudens gold coin currently fetches a few hundred dollars over bullion prices in “mint-state 63.” A one-grade increase would push the value to more than $3,000, according to the Certified Coin Dealer Newsletter. A two-grade improvement would increase the value to about $17,000.
“Though I think of myself as a collector, I’m really an investor,” says 68-year-old Dale Friend, a retired lawyer in Lake Tahoe, Nev. “I’ve realized I have very little control over investments in stocks and real estate. But with coins I can know all there is to know about the investment I’m going to make.”
It is clearly prudent not only to hedge against the depreciation of the dollar but to position yourself for the best and steadiest appreciation possible. Gold and rare coins are real money with tremendous and growing value and purchasing power; and an investment strategy for today’s environment of extreme uncertainty must include these powerful asset classes.
And that’s the kind of money you can really appreciate.
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