HARD ASSETS NOW: THE PITCH:

 

Okay, you're probably not new to this, but what are the basic arguments for Hard Assets as the core of the your portfolio rather than a small hedge?

1) Hard Assets have no counterparty risk.

2) Every other investment has counterparty risk.

3) Hard Assets will never have counterparty risl.

4) Every other investment will always have counterparty risk

Think about that in an era when cash itself will inevitably go digital so every investment (including and especially crypto) can and will be tracked, taxed, hacked, confistcated, and subject to complete and utter collapse.  One bad trade.  One poorly managed bank,  One dishonest exchange,  One terrorist attack, One surprising declaration of war, One Virus,  One bad election result, Can all cause a ripple through the financial world  that destroys  the value of collateralized assets.

Except Hard Assets.  Because they are not collateralized.

The next major reason to own Hard Assets:

1A) Expertise.  You can and should own hard assets in an area where you have developed expertise.  Then you rely on your own expertise.  Are you an athlete?  Buy Athletic Memorabilia.  Are you a dancer?  Buy Dance Memorabilia.  A History Buff?  Buy coins or medals or rare books.  An Artist or Art Historian: Buy Art.  A Musician?  Buy instruments of musical memorabilia.  Buy what you know.

No matter how much you know about stocks and bonds, unless you are a full time trader for Goldman Sachs, somebody knows much more than you do.  (yeah, that means you - all you clever day traders with fool proof technical systems)   Not so with your particular area of expertise.  Most everyone has one.  For God's sake if all you do is smoke pot, collect celebrity roach clips.  They'll be worth somehting to somebody.  Your better of than getting ripped off investing in stuff you really don't understand at all.

The next major reason to own Hard Assets

1C) In an era of a MEGA DEBT BUBBLE; the only way for governments to survive is to inflate away the debt.  That means debauch the currency.  That means every Hard Asset will rise in proportion to the debauching of the currency.

This is incontroveritble, ineluctable math.

Finally: 

1D) FOMO

Almost all invresting at some point is driven by Fear of Missing Out.  This has not even remotely begun in the hard asset universe.  Right now we are in the stage when Hard Asset Investing is bgeinning to reach a broader consciousness.  You see it on TV  You see it a the auction houses.  You see it with financialized funds organized to buy wine or art or coins.

But it is in its infancy.  When FOMO takes over, look out.