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The Importance Of Physical Assets

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United States
596 Posts
 Posted 10/01/2021  9:20 pm Show Profile   Check farrider11's eBay Listings Bookmark this topic Add farrider11 to your friends list Get a Link to this Message
I hope this does not come off as political, as it is not meant to be.

What everyone does here is collect physical assets as in gold and silver and rare coins.

At the rate the US is accumulating debt, the need for physical assets (In my opinion) is one of the best things someone can do.

I want to thank the folks that started this forum, and contribute to that end, along with the hobby.

I believe at this point in time, these are the best investments you can make, and pass along to your family.

This forum, helps in every way possible in providing GREAT information and opinions, based on facts.

Thanks again.

*** Moved by Staff to a more appropriate forum. ***
Nothing ventured, nothing gained.

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United States
5894 Posts
 Posted 10/01/2021  9:38 pm  Show Profile   Bookmark this reply Add ijn1944 to your friends list Get a Link to this Reply
Well, I have no gold, and only a modest amount of silver--the silver enjoyed for its numismatic qualities, not necessarily its cumulative weight. My heirs will get: 1) a pile of Danscos stuffed with a mix of interesting coins, 2) perhaps three dozen slabbed coins, and 3) around 2000 additional coins (mostly interesting) in 2x2s stored in boxes.
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 Posted 10/01/2021  10:14 pm  Show Profile   Bookmark this reply Add Coinfrog to your friends list Get a Link to this Reply
Fact is, including cash interest earned, no broadly and steadily invested asset has outperformed the stock market over the last hundred years.
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 Posted 10/01/2021  10:20 pm  Show Profile   Check farrider11's eBay Listings Bookmark this reply Add farrider11 to your friends list Get a Link to this Reply
I agree, but sooner or later,someone else has to pay the bill for printing money that isn't worth anything. I believe the term is fiat currency. I could be wrong.

Fiat money is a currency (a medium of exchange) established as money, often by government regulation.

Fiat money does not have intrinsic value and does not have use value. It has value only because a government maintains its value, or because parties engaging in exchange agree on its value.

It was introduced as an alternative to commodity money (a medium which has its own intrinsic value) and representative money (money which represents something with intrinsic value).

Representative money is similar to fiat money, but it represents a claim on a commodity (which can be redeemed to a greater or lesser extent)
Nothing ventured, nothing gained.

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Edited by farrider11
10/01/2021 10:42 pm
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Australia
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 Posted 10/01/2021  11:28 pm  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
A professional investment advisor a long time ago told me:
"As a general rule of thumb, about 5% of your investments should be in an area that you personally understand, such as
artworks, stamps, coins, bullion or antiques. (excluding your home)

The biggest single physical investment that most people make is the home that they own and live in. Just before we married, I sold a substantial coin collection as deposit to get into our first mortgage. Paid that off in 7 years at a time when inflation was running at around 10% annually.

He gave this advice when we were young marrieds. This led him onto the best advice of all.
He said:
"Kiss your wife sweetly every night before you go to sleep and make sure that she she knows she is loved".
He said that I should adopt this as a mantra, if I want to or not.
He admitted that the biggest losses of all are made in divorce. He was speaking from experience.

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 Posted 10/01/2021  11:29 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
In the scheme of things my coins and currency are less than 1% of my total assets. I do have a few bullion coins but the vast majority of my collection is numismatist value. But I don't look at physical assets (precious metals) as an investment. I look it as item that are pretty and a hedge on inflation. In the 30 plus year I've had money on the stock market I've only lost value less than 11 times (quarterly, I only track balances quarterly and since I didn't sell I really lost nothing) and I'm way ahead compared to my initial investments.

If physical assets are what you want, go right ahead I'll keep my low cost index funds.
Edited by hfjacinto
10/01/2021 11:37 pm
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 Posted 10/01/2021  11:34 pm  Show Profile   Bookmark this reply Add kbbpll to your friends list Get a Link to this Reply
Gold is fiat money. It's value is only what we give it. It has no intrinsic value either. Other than a few industrial applications, it's useless. It's pretty, easily worked into jewelry, and that's about it. You can't eat it, drink it, wear it or get shelter from it. In it's pure form you can't even make a useful tool out of it. Yes, it can be exchanged for useful "physical assets", but ultimately it has as much value as a paper dollar - the value we assign to it. As "real money" it might as well be cowrie shells. These are my thoughts every time the topic of "fiat" versus "real" money comes up. But I'm very simplistic.
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 Posted 10/02/2021  12:24 am  Show Profile   Check farrider11's eBay Listings Bookmark this reply Add farrider11 to your friends list Get a Link to this Reply
Everyone makes good points. The post was to provke thoughts and discussion. I respect everyone's point of view, and am interested in seeing it. Thanks for the replies :)
Nothing ventured, nothing gained.

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Canada
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 Posted 10/02/2021  12:31 am  Show Profile   Check Pacificoin's eBay Listings Bookmark this reply Add Pacificoin to your friends list Get a Link to this Reply
First and foremost , a completely paid off house is paramount .
Then zero consumer debt .
Everything else falls into place after that .
Then invest invest invest in SOLID companies that pay
Dividends .
Never have more than 5 per cent in PM s and don't think of
Numismatic coins as an investment.
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 Posted 10/02/2021  01:14 am  Show Profile   Bookmark this reply Add hokiefan_82 to your friends list Get a Link to this Reply
@Pacificoin - I couldn't have said it better myself
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 Posted 10/02/2021  02:35 am  Show Profile   Check jacrispies's eBay Listings Bookmark this reply Add jacrispies to your friends list Get a Link to this Reply
I would too like to thank the forum creators and the people who keep this wealth of knowledge flowing everyday.

As a young lad myself, time is in my favor, so I try to buy my coins and precious metal smart. With the little funds that I have to spend on coins and precious metals, I try to think of the long term. I enjoy doing research what coins are undervalued and also have good long term potential.

I have been trying to collect a little bit of everything in these first few years of my journey. Everything from a Dansco Type Set to a 500 morgan/peace dollar goal. I have been dialed in to a Capped Bust half dollar date run, and I am assuming this will take at least a couple of years to assemble a nice, original set.

One of the best parts of having physical assets and a coin collecting hobby is that it bring many enjoyable social experiences. I am currently building a collection with my grandfather, and we like to visit coin shows and share our latest purchases over text and facetime. I am excited to be a grandfather myself one day, and to share the neat coins and history that comes with the hobby.
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 Posted 10/02/2021  04:34 am  Show Profile   Bookmark this reply Add John1 to your friends list Get a Link to this Reply
Correct me if I am wrong,but hasn't U.S. money been "fiat money" since 1964?
John1
( I'm no pro, it's just my humble opinion )
Searched 6.5 +/- Million Cents Since 1971
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 Posted 10/02/2021  05:22 am  Show Profile   Check jacrispies's eBay Listings Bookmark this reply Add jacrispies to your friends list Get a Link to this Reply

Quote:
Correct me if I am wrong,but hasn't U.S. money been "fiat money" since 1964?

Even though the exclusion of silver coinage and silver certificates from circulation meant the dollar was no longer redeemable with silver in 1964, U.S. currency was still under the gold standard. On August 15, 1971, President Nixon officially removed the dollar from the gold standard. Meaning up until that point, there was one dollar in gold possesed by the government for every paper dollar in circulation, even though they couldn't be redeemed for each other. So, under the definition of "fiat money" the United States dollar have been fiat money since August 1971.
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 Posted 10/02/2021  07:58 am  Show Profile   Bookmark this reply Add John1 to your friends list Get a Link to this Reply
Thanks,good to know.
John1
( I'm no pro, it's just my humble opinion )
Searched 6.5 +/- Million Cents Since 1971
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Taiwan
345 Posts
 Posted 10/02/2021  09:25 am  Show Profile   Bookmark this reply Add Everest to your friends list Get a Link to this Reply
" Gold is Fiat money" Gold is a commodity. Fiat money is a government issued currency not backed by a commodity such as gold.
I totally agree with Pacificoin but in my neck of the woods (Asia) gold plays a prominent position in most peoples savings.

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 Posted 10/02/2021  3:06 pm  Show Profile   Check farrider11's eBay Listings Bookmark this reply Add farrider11 to your friends list Get a Link to this Reply
Beyond Watergate, I think the worse choice Nixon made was taking us off the gold standard, it allows for unlimited money printing, and debt. Thats why I think it is a good idea to have tangable assets like houses, and coins and precious metals. Even if you dont agree, it cant hurt anything to have it as a hedge.
Nothing ventured, nothing gained.

My Set Registry



Edited by farrider11
10/02/2021 3:06 pm
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