Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on collectible knives. (See the Tangibles section, near the end of this column.)
Precious Metals:
First, there is this monthly newsletter: Sprott Precious Metals Report – June 2017 (PDF)
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Next, is some commentary by Steve St. Angelo: When This Massive Bubble Pops… What Will Happen To The Precious Metals?
Commodities:
Next, OilPrice.com reports: Goldman Slashes 3-Month Oil Price Forecast By $7.50
Stocks:
Adam Hamilton: Stock Markets Hyper-Risky
Forex:
On to the foreign exchange (Forex) news, there’s this at Reuter’s: Brightening economy sets euro up for strongest quarter since debt crisis
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Post-Draghi surge drives euro to one-year high
Economy and Finance:
Brandon Smith: The Federal Reserve Is A Saboteur – And The “Experts” Are Oblivious
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Over at Zero Hedge: Global Debt Hits A New Record High Of $217 Trillion; 327% Of GDP
Tangibles Investing (Collectible Knives):
I generally shy away from “commemorative” and “collectible” items that are often foolishly touted as investments. Often, these are anti-investments, since they start to lose value immediately. Whether you buy Hummel figurines or “Special Edition” Winchesters, odds are that in the long run you will lose money. But one exception seems to be custom-made or limited production knives from the most well-respected knife makers. A few names always stand out, such as: Jimmy Lile, Peter Martin, Joseph Pardue, Allen Elishewitz, Chris Reeve, Greger Forselius, Doc Hagen, Frank Niro, Garth Hinmarch, and of course Randall. Keep in mind that some knife makers have a regional following. Here in the American Redoubt, for example, knives made by Rudy Ruana are particularly sought-after.
A key caveat is that liquidity is low for most collectibles. Why? Because there are only a limited number of potential buyers. This is in contrast to valuables that are commodities, such as silver and gold. With those, there are always lots of potential buyers. (Hence, higher liquidity.) You can liquidate a cache of bullion or slabbed low-grade numismatic coins in just one day at a coin show, or even by phone. But selling off a high grade knife collection could take many months.
One advantage of investing in knives is that you can re-sell them into most States with no restrictions. However, some States have restrictions on double-edged fighting knives (classified as “dirks or daggers”), and often on automatic knives.
One proviso: Always, always, save the original boxes, paperwork, and receipts for any collectible item that you buy. In some cases losing a box is like throwing away 20% of the value of the item. This is true almost across the board, in the antiques and collectibles arena. (In the antique toy world, the condition of the factory box often accounts for more than half of the value of the toy!) In the knife world, having an original sheath is also often a key issue. A Randall knife with an original H.H. Heiser-made sheath brings a huge premium.
Just as in the art collecting world, it is best to “buy on weakness.” (Not yours, the seller’s!) Do your homework, find estate and divorce sales, and then swoop in with cash. The darkest depth in an economic recession is always a good time to buy collectibles. As always, thorough research pays off. Be a smart buyer. And, as with any other art form, be prepared to “buy and hold” for the long term, to ride out any dips in the market.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. As a result, SurvivalBlog often “gets the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
Tangibles Investing:
There are options to investing in tangibles other than gold, silver or high end collectibles. Useful, vintage and antique hand tools, can be found for pennies on the dollar and there is a huge market for them. Cast iron cookware is another good example.
The “Prepper” connection is obvious for many of these tools and most are not that hard to refurbish.
Choose something you enjoy, specialize in it, and you could enjoy a very profitable hobby right now as well as some good long term investments!
Thanks for the great article!
I have always loved quality knives. I tend to buy knives made in Seki Japan- especially old SOG brand knives, military knives and vintage knives made in the USA. I often felt guilty buying “another stupid knife”, but I just loved looking at them and hefting a well made tool. A few years ago I got injured and had to sell most of my collection. I took great photos, and put in my time composing detailed descriptions. Of course, I ended every description with, ” Please see my other auctions of fine vintage and collectable knives.” Thus, every auction led the searchers to my other auctions. I chose Ebay to auction the collection. I think because I listed over thirty auctions at once and because I started every auction at one penny with no reserve, the listings gained attention like an avalanche. I more than doubled my money on most of the sales. These were quality pieces that I had acquired over several years, but I was sure glad that I had invested in those “stupid knives”. Since that sell off, I have again enjoyed replacing many of those knives and see them as part of my investments that I get to hold and enjoy.