Thursday, November 13, 2008

Was I right?

I said in comments to one of my Monday pieces, "Up to a certain limit, one can purchase index-linked certificates to preserve one's savings, but I'm trying to guess what rich people will do to get out of cash if currencies everywhere inflate - buy Van Goghs?"

And now Reuters reports that Sotheby's is still selling contemporary art at high prices.

The rich are getting their servants to load the packing-crates into the train while still telling us that we'll win the war. Perhaps they'll flee to Argentina.


hatfield girl said...

Paintings are good but most of us haven't the money, even to insure them. A new, highly efficient boiler (imported) fitted last month in London met some criteria: not too expensive, cuts on the heating bills, safe and warm for winters to come, and shortly choice in imported goods is going to fall as they stop being affordable, or perhaps even made at all if things get bad enough.

I wonder if the rich will stay in England; they tend to go for places where inequality brings bigger rewards or is more acceptable don't they?

Anonymous said...

" and warm for winters to come....." Assuming, of course, that the fuel is available or one can afford it.

Anonymous said...

Invest in productive assets - businesses that own their own property and produce actual physical stuff that people need - food, power, shelter, transport. Avoid any business in rented or leased premises, or that are involved in areas of discretionary spending ie a lot of retail businesses, or service providers.

Other good businesses would include car repair firms, gas plumbing and heating, electrical fitting (a lot of regulations now prohibit non trained people in these areas, so less competition esp. for Corgi gas installers). You wouldn't want to be dependent on imports from abroad as the £ could drop and make your product/service uncompetitive. In fact exporting could be good as lower £ equals more competive pricing, as long as your product was entirely UK sourced. High quality food and drink would fit the bill well, or specialist engineering products.

Sackerson said...

Hi HG - Fischer say inequality increases in the downwave.

Alec: burn bundles of money when hyperinflation hits? I'm already thinking of weighing the Daily Mail - I think the Saturday edition gives most paper per penny.

Sobers - thanks for these interesting and useful defensive investing tips.

James Higham said...

You could make a fortune as a guru, Sackers.

Anonymous said...

Sobers: " car repair firms..."

The Ford vehicle repair establishment in Oxted went into receivership at a moment's notice about a month ago costing the jobs of several hard working folk. Given the looming downturn in vehicle production and individual wealth, I think that henceforth (non-essential) car repairs and sevicing will be very low on the To Do list.

Steven_L said...

I might blow my savings next summer on a decent foreign holiday while I can still afford it.

In terms of speculation, if they decide to go down the inflation route and print money, commodites, if either the conspiracy theorists or the people who say they are all just stupid are correct, and they allow prolonged deflation, then I guess try and play the currency markets.

Anonymous said...

"Sotheby's is still selling contemporary art at high prices"

Hopefully they are becoming a little more discerning too.

Wolfie said...

Oddly enough a little bird tells me the American super-rich are making plans to live in mainland Europe.