Buy Gold? Buy A Used Car Instead!
by eric • August 13, 2015
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Gold may not have the high rate of return that the casino called Wall Street offers … to insiders. But it is a really good way to store value – and that accounts for its popularity among people who may not get rich quick but tend to avoid becoming poor.
Used cars are another great way to transmute depreciating paper money into a durable asset that – like gold – is portable and fungible (i.e., easily converted into other things of value).
The government has inadvertently created a bull market for them, too.
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Unfortunately, I didn’t pay attention when my grandfather would fix what ever particular “$50″ wreck I was driving that week.
In the past, my strategy was to buy new on a three year loan and keep “paying” myself until it died. Eventually, I could pay cash for cars. Seemed to work for me.
Last car, with “zero down and zero interest”, my financial advisor convinced me to take the free money and leave the cash in my portfolio. I’ll drive it until the wheels fall off which means it should last about 9 years.
What I’ll do then I have no idea. What the economic climate will be I have no idea. But I’ll adapt since it’s obvious that the “only constant is change”.
For anyone who’s got some mechanical ability, old cars / trucks that you can still work on seems to be a profitabe niche.
When I drive to and from the Jersey shore, I see veritable series of “one car used car lot” (i.e., each house along the way with one, or maybe two, used cars for sale). As the season progresses, more “projects” roll out for sale. The peak is around “back to school season” when the sports cars seem to dominate the “lots”.
The USA has become the throw away consumer economy at its own peril. Perhaps this is the renaissance?
I think this is more a reflection on the value of Federal Reserve Notes and the bad behavior that it has “trained” the shepple to engage in.
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