What are you doing with your parked savings?

savingsratejune09Government reports have us substantially increasing our savings rate right now. Is that true? Probably. I don’t know about you but when parts of our financial system began collapsing back in Oct 08, I started pulling back and we are into this for what, 8 or 9 months now? So the question is- Where do you have your money parked? I’m talking about money set aside as savings.

Safety is one thing and overcautiousness is another. Now it is time to evaluate our investment options. Do you go back in the stock market? I don’t think we are out of the woods yet. Our banks are under tremendous strain from non-performing loans right now. One of our largest banks is on the verge of failing as we speak. Unemployment is going to continue to inch up at least for 6 more months. I could go on, but better stop here otherwise, I’ll get labeled as “gloom and doom.”

INVESTMENT OPTIONS

savingsA  financial advis0r is going to recommend diversifying your investment portfolio. Depending on your age and cash needs, some money is put in moderate to high risk investments, while other portions are more conservative investments.

The stock market is out for most folks because of its volatility right now, so what about CD’s (certificates of deposit)? Have you checked the rates lately? They are terrible. I’d only put short-term money in a CD right now.

Knives as Investments

voylesauction42dec08Let me ask, have you thought about stocking a portion of your savings into knives? No, I’m not talking about running out and buying $5000 of Spyderco or Benchmade over the counter knives. Instead, I’m talking about doing your homework and seeking out objective opinions from knowledgeable collectors and dealers as to which knives will hold up in tough times and likely increase over time. I’m not talking about a quick flip either.

Many folks caution us against buying knives as investments. I’ve read those opinions since I started collecting. Sure there is an element of risk associated with buying knives when seeking a return on those dollars, but I didn’t say bet your farm.

Another reason knives need looked at really hard right now is the increased likelihood that over the next year high quality knives will come into circulation as collectors reallocate their collections or sell-off knives that are outside the heart of their collection.

While my suggestion here is subject to pot shots, putting a portion of your mid-to-long term money in collectible knives just makes sense to me. If anyone is able to have a feel for which knives, makers or patterns “ought” to be the right choice- it is us. It’s not like someone told you to buy ink pens or glass bottles. After all, we are knife collectors.

Additional readings on the subject:

20 Investments: CollectiblesInvestment Grade Blades (Part 1)- Tactical diversity in your art portfolio.

Photo Credit: Bruce Voyles Auctions

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5 CommentsLeave a comment

  1. Scott,I am buying knives as a investment!!, Here are my reasons: I am having a blast doing it, I am supporting the folks that make knives,I am passing down a piece of american craftsmanship to my offspring, and I comfortable with the risk. I have no confidence in the stock market. I buy U.S. Bonds, Real estate,and american made knives. Good Luck My Friend. P.S. please keep this journal going.

  2. Thanks for the reference link for Investment Grade Blades. I think getting beyond stocks is a great idea for investments. Knives, guns, furniture, paintings, sculpture, all can be great additions to your portfolio. “IF” you do your homework as stated above.

    My father has been collecting knives for years, many have gone up quite a bit in value. My recent acquisition of a custom chef’s knife (Artemis) by Jay Fisher inspired the article referenced above.

    Part I discusses Jay Fisher, Master of his trade, and his work being world renowned appreciation in value is as close to guaranteed as it gets, but the initial purchase price is obviously much higher. Part II will introduce Stacy Navinger – and discuss the concept of purchasing knives from up and coming or new names to the knife making trade.

    Part II will be out hopefully later this week. Stacy is determined to join the ranks of the Masters, if you are seriously considering investments the knives he makes now will be from the initiation of his career. I’m planning to pick up a few of them this year for our collection.

    In regards to profit taking – IE more knives coming on the market, that is the same as any investment, real estate, stocks, bonds, etc. There are stages of the cycle where there are more sellers than buyers – that’s OK it gives buying opportunities.

    Knives are a long term investment – if the market is rich with sales then hold yours until it is not.

    Then there are those in my case with Artemis – collectors hate when knives are used. I’m planning to put my Jay Fisher Chef’s knife to work – as it was designed to be the ultimate chef’s knife, and I have no intentions of ever selling it. Some day you may find it as part of my estate sale!

    The Birth of Artemis (Part I) is in our last newsletter. This two part article reviews the commissioning process from the idea, through finding the right artist, to the final delivery.

    http://www.artisansofthevalley.com/docs/Artisans_Quarterly_Review_Vol2_Issue2_2009.pdf

    Part II will be released by the early August and will finish the detailed documentary of the creation of this knife. We’ll post the release of the next issue on our website and on our blog: http://www.artisansofthevalley.com

    Thanks again!

    Eric M. Saperstein
    Master Craftsman
    Artisans of the Valley
    http://www.artisansofthevalley.com

  3. Good article Scott! And, I can’t argue with either of the comments already made. Back when times were a bit better, I invested heavily in knives, but did it leisurely and at a rate I could afford at the time. I was also very fortunate that ebay was VERY young at the time and hadn’t been discovered by collectors just yet and I was able to pick up many very rare pieces being liquidated from estates at pennies on the dollar. Those days are gone and I am one of the lucky ones. My knives sit quietly and don’t consume groceries, utilities or even toilet paper.

    Today’s knife investor must watch every penny, not take foolish chances (nobody wants to buy your mistakes), and above all be knowledgeable and patient.

    While it IS a whole new ballgame for knife investing, it CAN be done.

  4. Photo credit for the use of my photo of the 4 handmades from a past J. Bruce Voyles Auction catalog would be nice.

  5. http://www.artisansofthevalley.com/blog/index.php/2009/08/investment-grade-blades-part-2/

    Part II of Investment Grade Blades (Referenced in this article) is now available on our blog site.

    Thanks again for the reference and the link back!

    Eric M. Saperstein
    Master Craftsman
    Artisans of the Valley
    http://www.artisansofthevalley.com


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