HARD ASSETS REQUIRE SOME KNOWLEDGE

 

The thing about buying hard assets is that there is a tremendous advantage to buying things you understand.  If you want to take a punt on Doge Coins, or BioPharmaCon, or WikiSmmSnap all you need to to do is know a guy who read something on facebook by someone who really knows his stuff and then throw some money at it, and hope.

Hard Assets are real things with a real Historical track record of holding and increasing in value over time.

The first thing you need to know is how your hard asset of choice has performed over the last hundred or five hundred or two thousand years.

Then you need to know why.  Why do people value that gold coin that was the first one ever minted in the history of humanity?  What's so important about Julius Caesar anyway?  Why do people think Da Vinci is such a great painter?  What's so great about an Aston Martin?  Why is the Gutenberg Bible such an important object in the history of human thought and achievement?  Is it any better than the Geneva Bible or the Lenneberg Codex?  If you're thinking of buying one you really ought to know.

If you don't understand why something is cherished you just might buy into a fad rather than an historical investment.  Or you might vastly overpay for something that no better than a lesser known but equally as important and sought after version of the same asset type.

Then you need to know How Many?  What if there were thousands of Gutenberg Bibles on the market today?  As amazing as it might be, would it hold the same value?  The number created, the number available, and the number that might become available are all important factors in understanding your market of interest.

All of this makes Hard Asset Investment vastly more fun - because you must be the expert, if you want to do it successfully.  You can't subscribe to someone else's Newsletter to hear about what's hot and what's not in the world of 15th century lithographs.  You really should understand that world yourself before you buy one.  Unless you're so rich it just doesn't matter. Like the 3000 billionaires in the world.

But unless they inherited their billions they probably are able to learn about their areas of interest.

Finally, to successfully invest in Hard Assets your knowledge should lead you towards currently underappreciated Hard Assets.  Things that are so historically important and beautiful and well crafted that you know will eventually be more appreciated than there are at this current time.  You can always momentum trade in any market, but even in a vast bull market momentum trading can eventually get you into trouble.

The more you learn, the more you appreciate.  The more you appreciate the more your Hard Asset collection appreciates.