5 Questions & Answers - Part 1

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Many investment professionals believe the current US and World economies are still mired in stagnation with low or zero growth. The Central Banks of the US, the European Union and Asia continue to be concerned and confused as to economic direction and solutions for the this lack of growth. Investors are caught in the middle and are left with difficult decisions to find places to invest that meet their needs for safety and returns above the current bank savings rates of 1%, or less. 

 

Q: How can an investor get relative safety with a hedge against inflation (when it does re-occur) and still get growth? 

A:  One option with historically significant returns are tangible assets.  Although tangible asset classes include precious metals, there are a number of different classes.

 

Q: What are Tangible Asset Classes?

A: Definition: A tangible asset is an asset that has a physical form. Tangible assets include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory. Nonphysical assets, such as patents, trademarks, copyrights, goodwill and brand recognition, are all examples of intangible assets.

Surprisingly, tangible assets or “hard assets” known as collectables are large world markets that trade in the billions of dollars. Bloomberg estimates the following collectable market sizes for 2016

Collectible and Related Market Descriptions’ by Size

Jewelry Market - $150 Billion

Global Art Market - $75 Billion

Diamonds Market - $72 Billion

Paintings Market - $64 Billion

Classic Car Market - $50 Billion

 Watch Market - $40 Billion

Antiques Market - $16 Billion

Rare Coins & Medals - $7 Billion

Rare Clock Market - $5 Billion

Lunch Box Market - $100 Million

Wine Market - $100 Million