This topic is prompted by a post I did over on the “off topic” board. I wrote there about an old wristwatch I found. It turned out to be quite valuable.
I think many participants here would agree with the following:
It’s not how many dollars you have, not the size of your nestegg measured in dollars, that matters. Instead, what’s important is the purchasing power of your nestegg.
The economy is picking up a bit. There is talk of inflation once again after some very good years in that regard under President Obama. In order to be a viable store of purchasing power, non-monetary options need IMO to possess high valuation density. To wit:
Gold, and other precious metals (e.g. platinum), occupy only a small amount of volume relative to their worth, facilitating storage. Also, precious metals do not “eat” (more on that in a moment).
Contrast that with, for example, expensive classic automobiles. Classic autos are relatively large and are subject to deterioration if not stored properly. They “eat” because it costs money for proper storage and maintenance. Ditto land and/or real estate. Those things “eat” because you must pay real estate taxes on them, a situation which could go on for years before time comes to cash in.
The wristwatch I found, OTOH, is small, valuable, and unless used regularly or abused is unlikely to fail. Other low maintenance, high valuation density items would include gems . . diamonds for example or even precious stones, e.g., emeralds.
OK, so I mentioned some of the obvious stuff. Do you have any more creative and innovative ideas for viable non-cash stores of purchasing power? The way things are going now we all might benefit from having a portion of our nest egg invested in such things.