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Right now the economy is shifting, but don’t let that worry you, because the economy is always shifting.
There is a lot of talk about interest rates going up. Interest rates fluctuate over time, and that is a normal part of market volatility. Increased rates make it more expensive for first-time home-buyers and people seeking car loans to borrow money.
The theory is that higher interest rates will discourage buying and promote saving. The less money there is in circulation, the lower the prices of individual items will be. The reason the prices go down is that each seller has more items to sell. In other words, sellers have a greater supply of inventory because demand for the inventory has diminished.
When the Wall Street gurus talk about a Bear Market or a Bull Market they are talking about the way the market is shifting. A Bear Market indicates a decrease in stock prices. A Bull Market indicates an increase in stock prices.
If you are looking to buy stocks, try and buy reliable stocks near the end of a Bear Market period. If you are looking to sell stocks, try and sell at the top of a Bull Market when you will fetch the highest price.
One way to hedge your bets against the shifting economy is to invest in things that steadily grow in value over time. Metal futures are a comparatively safe intangible stock-like investment. They are non-tangible notes with a value that is dependent on how much the experts believe the metals will be used in the future.
For something more secure, look for something non-perishable and tangible that becomes more valuable over time. For example, metal coins. Coins are physical, non-perishable, tangible good and you can invest in them.
The five following types of coins have seen great increases in value over the past decade, and as real estate loses value and markets fluctuate during 2023, you can watch your coins gain more value.
Mint Condition Proofs
Each year, nations set aside a number of coins that were produced by a special double-strike procedure. These coins were more difficult to make, they have a finer appearance, and fewer were minted than the for-circulation coins. Some proof coins have a different composition than their non-proof brethren, for example, the circulation coins might be minted on Copper-Nickle planchets but the proof coins are minted on Silver planchets. For all these reasons, proof coins are more valuable than non-proof coins. Proof coins also go up in value each year because some of them slip into circulation, and that decreases the number of “perfect” Proof coins that exist.
A coin is rare if there are not many surviving examples or if there were very few of that specific type and variety of coin minted. Finding rare coins is a treasure hunt. If you have a coin dealer you trust, they can help you grow your rare coin collection. On your own, you can research coin rarities and look for specific varieties of your favorite coins. Finding rare coins takes time but coin clubs can help you connect with other people who are looking for their favorites too. A trusted coin dealer and a network of collectors can make it fun to learn and search for even the rarest coins.
Bullion is bulk metal, typically silver or gold. Bullion coins are not legal tender. They are made for people looking for physical investments as opposed to digital investments like stocks, bonds, crypto, and NFTs. The Crypto crash has shown just how unreliable intangibles can be. Coins are physical. They can’t vanish into nothing.
Like investment jewelry, investment coins can derive their value from their composition. A diamond is valuable because it is a diamond, and its color and clarity can add to or diminish the diamond’s value. A gold coin is valuable because it is a gold coin, and its rarity and condition can add to or diminish the coin’s value. Like proof coins, there are fewer gold coins produced than circulation coins. Like rare coins, the most valuable gold coins are hard to find, but looking for gold coins is hunting for treasure.
If you are just starting to invest, it is likely that your time and money are limited. Silver coins are the best way to start your coin investment journey. Unlike proof coins, there are many made-for-circulation silver coins. Unlike rare coins, silver coins require less study and numismatic knowledge. Unlike bullion coins, silver coins are plentiful and sometimes you can find silver in circulation. Unlike gold coins, silver coins are entry-level and affordable. Silver coins are the new investor’s best friend.
We hope this post helps your portfolio grow and that it helps you find security in a shifting economic landscape.
See you next time on Pendant and Ring.