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 investing on ultra low production number cars. (See the Tangibles section, near the end of this column.)
Clint Siegner at Activist Post: Preparing to Barter and Trade With Precious Metals Is NOT a Loony Idea
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Most experts agree: USD/CHF Forecast Poll
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Economy and Finance:
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Television interview: ‘Dr. Doom’ Marc Faber: There’s no all-clear signal in the markets
Over at MarketWatch: Americans now have the highest credit-card debt in U.S. history. And overall consumer debt now totals an astronomical $12 trillion. About $9 trillion of that is in house mortgages.
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And at DollarCollapse.com: Really Bad Ideas, Part 3: Government Debt Isn’t Actually Debt
Tangibles Investing (Low production number cars):
I have a consulting client, who works in a high income profession. For privacy reasons he shall remain nameless. He has chosen a very unusual tangible investing strategy. He loves sports cars. And he has some extra space in the new oversize shop building at his retreat/ranch where he lives year-round. Last year he did some measuring, and found that he has room for 17 sports cars.
Rather than buying classic cars that have already gone up in value, he is focusing on recent or current-year production big block “sport” variants (SS, GT, et cetera.) of Detroit production cars. He will buy, for example, the largest-engine variant of a sport model that is already a fairly scarce car. His goal is to obtain rare variants of which less than 1,000 were made, and each with less than 500 miles on the odometer.
If you include paint colors variations, he will probably end up with cars for which there were less than 500 produced. For example, he owns an example of one of the cars mentioned in this article: Eight of the Rarest New Cars on the Road. And, given the unusual factory paint color of his example, it makes it one of less that 150 produced. That is considered an “ultra low number” car.
Once he buys each car, he follows his own particular spin on standard storage procedures. He simply idles it with a hefty dose of Sta-Bil mixed into NON-ethanol blend premium gas in the fuel tank, parks it in his shop, chocks the wheels, releases the parking brake, disconnects and removes the battery. Then he drapes the car with a car cover. He told me that he only buys hard top models because convertible tops tend to deteriorate in storage. In our talk he emphasized that outgassing batteries will induce rust inside the engine compartment. Therefore they are stored in a separate room. These are individually labelled, and all trickle charged.
His budgeted goal is to buy 3 or 4 such cars per year, for the next five years. Then he plans to leave them garaged for at least 10 years. He tells me that even if only one quarter of these cars become truly collectible or a “future classic”, his overall investment will far outpace the Dow Stocks (At least considering their current unsustainable trajectory.)
By the way, his “daily driver” is a low-production number continental European sports car from the early 2000s. But it never developed much of a collector following here in the States. He describes it as his “favorite investing mistake”, since he now enjoys racking up the miles on it. (The other cars in his collection get idled once in a while, but get almost zero miles added to their odometers.)
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
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. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!