Investments in real values – or how to make real money with real values…

Updated: Aug 3, 2019

People who want to invest their money into real values do it out of a specific reason. The confidence and trust in regular money have been severely damaged in the opinion of many people. The current world politics, which seem to be influenced only by populists, create an uncomfortable feeling for many people as soon as they think of their financial future.

Everyone who wants to build up financial reserves these days has to come up with some different ideas…Real values are one great possibility for this!

The demographic change is on our doorstep, and everyone knows that we should make private provisions. If we are going to a bank or an insurance company, we will get no interest for our money. On the one hand, we get no more interests, and on the other hand, we have inflation, which is eating up our savings. Therefore we can directly watch our money and especially the buying power of our money fading.

Therefore the starting position is more than insecure. The purchase of real values can be one solution to this situation. According to Wikipedia, real values are values of moveable property, land, and rights in the nature of land titles.

At Wikipedia this definition is so very brief that we want to go into the matter a bit further:

First of all, real values are rare items, since they cannot be multiplied arbitrarily.

On top of this material assets can exist in the form of so-called consumer goods.

What does all this mean concretely?

Real values are material goods, which are rare and which will not always be in endless supply. And they have practical utility for us.

Let us demonstrate this on a few concrete material goods:

- Real estates (e.g., condominiums, houses, factories, office buildings, etc.)

- Lands, like building plots, farmlands, grasslands and woods

- Cars, boats, airplanes, vintage cars

- Watches

- Diamonds and other gemstones

- Machines (starting at coffee machines until to a robot)

- Furniture, antiques, works of art, carpets

- Trains (even model trains)

- Jewelry (precious metal jewelry, but also costume jewelry)

- Precious metals (and metals in general)

- Wine, whisky, etc.

All these things have very different values for people and companies. For example, an acre is worth nothing for yourself, because you don’t even know what to do with it. Whereas for a farmer, the value depends on the harvest yield, which he could achieve.

Or you know it from the topic jewelry and watches. For one it can´t be expensive enough, for the other, a cheap plastic watch is good enough, because for him an expensive watch has got no value.

We, therefore, see that it makes a big difference between the price and the value of an item. The term “real value” describes indirectly, that there can be different views and preferences about one concrete, tangible asset. Thus this one tangible asset has got different values, which means that it does not necessarily have a fixed price.

If we consult the economy, we learn that a price has got various functions:

1. Informational function

2. Control function (in the form of):

- Allocation function

- Scaling function

-Financing function

The information function says that we can see at a high price, that the item is scarce or rare. As a general rule, the higher the price, the more rare or exclusive is the real value. E.g., we automatically have the information that the price of diamonds increases progressively with their size. And the reality shows as well that there exist more little diamonds than big ones. But the information can also be that the production of the real value is pretty expensive. Therefore new condominiums are more expensive than so-called existing apartments which e.g., might be 40 years old already.

The scaling function, which is a sub-function of the control function, is fascinating. Simply said, the scaling function means that the one who is willing to pay the higher price will get the real value. Therefore this function assumes that there is always going to be a person for who an item is so essential at this moment, that he will pay more for it than other persons. For example, someone who is very thirsty is willing to pay 4 USD for just one liter of water at a filling station. But another person who is not that thirsty might drive from the motorway to another place like a supermarket where the water bottles are cheaper.

We know this consumer behavior as well in the area of renting real estate. Someone who absolutely wants to have a concrete apartment (e.g., because of the proximity to the university) is ready to pay a higher rent than someone who just needs a cheap flat and doesn’t care about the distance to the university.

The great thing about this function is also reflected in the sale of real values. If people see different values in the same item within the purchase, the same principle applies to the sale. In fact, we can watch this in practice every day.

Exactly at this point, you can make money for yourself, because this function applies for all real values (jewelry, cars, real estate, antiques, etc.). If you get yourself informed and watch this market, you will see how different the values are in this area. Precious metals are dropping out of this function because they are traded on the stock exchange. Therefore nobody will pay way more than the market value for one gold bar.

Our advice:

Collect a lot of information about any real value. This can be, e.g., carpets, paintings, or even vases. Important is only your interest in this real value and the knowledge about it. This can be anything from the production, processing through different cultures until to possible restoration work. If you know more about the real value than others and watch the market for a long time, you will see that some persons see no value in an item, and others are willing to pay a high price for it.

You have to build a bridge between these two types of persons. Offer someone who wants to give away his real value a fair price and sell it to someone else who is willing to pay more for it. This can start with some small items and change step by step into a big warehouse.

If you set your priority into the love for your real value, making money comes by itself in the long term. And especially if you make yourself a name in this market. Well then think of a real value which you could fall in love with. You might be able to upgrade it with a bit of skilled craftsmanship and offer it on the internet. There are so many possibilities out there. So what are you waiting for? Let´s get started.

You can also invest in exquisite real values with the help of our app. Just take a look.

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