O/T Looking for "under the mattress" type investment

[mosta]

good thread. I'd be scared of gold for fear that people's mystical attraction to shiny gold metal might disappear and then the it would drop to commodity value, which I believe is much much lower. I'd like to hear more about diamonds. And what are "bearer bonds" (is that just in the movies)? Aren't there any unregistered paper instruments?

[Broken Glass Can]

In terms of collectables, you don't really need to know all that much if you just follow a few rules:

1) Only buy valuable and rare items (Whether a stamp or a comic book, if it is worth $1000 now, it will hold its value and likely increase)

2) Make sure you buy them without a huge dealer markup (An auction for example) and that they are actively traded (so you can find a buyer when you want one)

[meow_meow]

So, if I understand all of your post correctly, you are looking to invest in something tangible - metal, gems, etc..., but which doesn't require a lot of specialized knowledge. Further, you would like it to be at least moderately easy to liquidate and you want a reasonable shot at an ROI greater than inflation over the next 10-20 years.
Does that about sum it up?

That's a pretty tall order. Actually making money in any kind of collectable (art, stamps, cards, elvis toenail clippings, etc..) does require study and specialized knowledge. I imagine that this goes for gemstones as well.

I'm curious as to why market instruments are so unappealing to you, as the enormous array of options is guaranteed to fit any risk profile...

If you are looking for something that will have a good chance of maintaining value no matter what happens, or that you could stash or take with you if you need to leave everything behind, then I hate to say it but gold is the way to go. Good value to weight ratio, people will always value it, despite the dearth of industrial uses.

If you are looking to make good returns with a minimum of risk, then you really can't do better than the stock market, especially if you aren't willing to devote a lot of time and effort in specialized knowledge.

[steaknshake925]

u might want to look into sports arbitrage. bet on both sides of a game at different sportsbooks when their odds are off alot. these arb opportunities dont come very often but usually ROI is 2-10% per game. i'm researchin this stuff now and will probly be gettin into it when i have a big enough bankroll, doesnt seem to take alot of specialized knowledge. so, thats probly something interesting to consider.

[crazy canuck]

u might want to look into sports arbitrage. bet on both sides of a game at different sportsbooks when their odds are off alot. these arb opportunities dont come very often but usually ROI is 2-10% per game. i'm researchin this stuff now and will probly be gettin into it when i have a big enough bankroll, doesnt seem to take alot of specialized knowledge. so, thats probly something interesting to consider.



The sportsbook usually have caps on the maximum amount you can bet, so you can't really make 2%-10% guaranteed on any amount. Not to mention that sporstbooks sometimes keep your money, so it is not risk free. Also, you have to be fast so it is a time consuming endeavour.

Be careful too, most of the alert providers suck. Here is a good review:

sports arb review

If you don't already know here is a review for sports books too:

sports book review

Cool thread by the way.

[Terry]

Ah. Surprised to see this thread pop up again.

[ QUOTE ]
I'm curious as to why market instruments are so unappealing to you

[/ QUOTE ]

I’m retired and have all the paper I want or need. I’m looking for some further diversification – an “end of the world” / “economic collapse” / “fast getaway” fund, I guess.

[ QUOTE ]
look into sports arbitrage.

[/ QUOTE ]

That’s a full time job. Not only that, it requires competing with some very large and very well funded organizations.

It sure looks to me like gold is the answer. Now if I could convince the poker sites to pay in Krugerrands ... hmmm ... think of the Neteller fees they could save. [img]/images/graemlins/wink.gif[/img]

[mosta]

[ QUOTE ]

I'm curious as to why market instruments are so unappealing to you, as the enormous array of options is guaranteed to fit any risk profile...


[/ QUOTE ]

because most paper instruments are registered and therefore traceable. the desideratum is something anonymous, international, liquid, portable, largely indestructable (at least that it doesn't physically deteriorate), value retaining, and ideally inflation surpassing. I sitll want to know if "bearer bond" is something they made up for movies.

[flub]

So you're just looking to hide wealth from the IRS right?

What is the bid/ask for these gold places? I'd go to a gold brokers instead of a jewelry shop or buying some oddball coins.

But I'd rather have my money in cash then gold. Inflation is very low and combined with the bid/ask spread and tendancy of gold to lose value instead of gain, cash would likely do as well if not better.

Or convert to Yen. Their currency has room to appreciate vs the dollar and they've been experiencing deflation for the last 5 years or so.

Or pay your taxes...

-f

[PrincipalSkinner]

I have recently discovered that some rural banks in the Philippines are offering 20% annual interest, and the deposits are insured by the Philippine govt's FDIC. The obvious question is "what can they be doing with my money that they can afford to pay me 20%?"

Here is part of an email just received from a bank rep regarding this question:

" . . .One question you raised or your friends might have asked was about how the 20% interest yeilding is being managed by these rural banks... I mean Im refering the example of rural banks that xxxxxx Company owns. Well... the answer concerns about how the outlet of funds are being brought for business by these rural banks.
1. These banks are into micro lending to government employees especially teachers and military personnel through salary deduction charging 36% per annum.
2. It also lends to financing companies in Hongkong and Macao especially for OFWs charging 54% per annum.
3. It also engages in credit card transactions which has 42% interest per annum.
4. These banks also transacts government rediscounting at 60% per annum.
5. It is also ofering jewelry loans at 48% per annum.
6. And lastly, banks are transacting commercial papers by lending to multi-national companies especially those with trust fund difficiencies on a multi-million peso loans charged with 20% interest per transaction. . ."

I am currently getting someone reliable in the Philippines to do on-the-spot research. If it looks solid, I'll probably do it. If you want to know more send me a pm and I'll keep you posted as I find out more.

[RobertHunter]

Buy tickets to large sporting events like the Super Bowl,Indy 500 etc... and re-sell them.You have to buy them in advance so your money would be tied up 1 year or more.And yes, nice pieces of Tanzanite(dark blue with red flashes and over 1 carat) are going up very rapidly.