Wall Street investor put his money in collectibles

Talk about getting out of the market, Antique Week reports in the April 13th edition, on an investor who got out in time. Then he turned around and jumped into collectibles as his investment of choice.

Ralph DeLuca said, “I didn’t like what I was seeing.”

So, he cashed in well before it was common knowledge things were out of kilter. He added that he wanted to deal in more tangible items.

1933 King King Poster- sold for $345,000

1933 King Kong Poster- sold for $345,000

Now to knife collectors what he jumped into might be considered an odd place to stash millions. Yet he had a hunch and followed it. He could have ended up in any area of collectibles, but he chose vintage posters. Yeap, posters.

Last month, he paid a new world record for an original 1931 Universal studio poster of Dracula, staring Bela Lugosi. The price? A cool $310,000. And at the same auction he paid $107,000 for a 1932 poster.

Mr. DeLuca now owns over a 1,000 entertainment posters, but he also buys other types too. He remains confident that all quality antiques, sporting items, firearms and collectibles are good investments.

“If you collect for a hobby, buy what you want. But if you collect for an investment, look for the best. I look for the rarest and the best.”                                                                                                                                                                         David DeLuca

I don’t know if we want somebody like this guy cornering the knife collector market or not? All it would take is one or two guys like this to change our market dramatically. It would be fascinating to watch though, wouldn’t it?

Still Own Stock, Then Better Buy Knives: Recommendations from a knife collector

If you are one of the brave few who still own publicly traded stocks, then I recommend you sell and buy knives.

Granted it might be preferred to buy gold, but who can find it. The good thing about knives is they have intrinsic value. Stock, on the other hand, is only a certificate- a piece of paper, if you will.

After the last 8 trading days, the stock market has seen a 22% decline. And investors have only lost $8.4 trillion (Yes, that’s trillion, with a “T”) since the market’s peak one year ago (let’s don’t feel that badly though, when compared to a single day- July 9th, 1932, the market dropped 91% from its level three years earlier)…heck, blue-chip stocks are only down 40% from last October’s record so far).

So, what say you? I say if you still own stock, then you had better sell and then buy knives.

Here’s why and it is very simple:

  • Stocks are actually only a piece of paper
  • Most people don’t actually have their stocks in their possession anyway
  • Stocks’ intrinsic value is that of the paper and ink
  • However, they could be used for producing warmth by burning them, if you have enough; please don’t tell me you still have that many though.

On the other hand, knives-

  • Can open a can of beans, cut up green beans, skin a squirrel for dinner, dig a hole, clean your nails, cut your hair, defend yourself… just to name a few 
  • Aside from their intrinsic value, if push came to shove, they can be broken down into pieces (don’t know why one would want to do that though) 
  • Also, knives don’t eat, don’t use electricity or gas, don’t take up much space around the house, your wife (or husband) isn’t likely to want them, they are enjoyable to look at, they can be traded for a can of beans, and once the blades are sharpened down to nothing, they can be used as paper weights (stock certs can’t)
So here is my investment advice, “Buy Knives.”           

C Platts Jumbo Swellcenter toenail

C Platts Jumbo Swellcenter toenail

 Yes, I know they could lose their “collector value,” BUT they can always be used for what they were made for- to cut, dig and poke things.

I can just see me trying to cut up spaghetti with my Platts Jumbo Swellcenter toenail, can’t you? 
Source: Wall Street Journal’s Weekend Edition Oct. 11/12, 2008

Published in: on October 12, 2008 at 9:10 am  Leave a Comment  
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