A tangible good, in other words a good that can be touched, is a real fountain of youth when dealing with the legitimate worries of an investor confronted by an economic crisis, whatever its origin, be it real estate, health, banking or societal – often a mixture of these. There is nothing more reassuring than having a tangible good that allows you to stand, as it were, on something solid. Of course, times change and tangible goods are changing too. In financial terms, they are called tangible assets. Real estate was a very secure tangible asset until the subprime crisis. Today, a serious investor will tend to be wary of speculative real estate, even of an investment in his own home. The scenes of despair in 2007 and 2008, when we were looking, speechless, at these families being dragged away from their homes during the subprime crisis, leave a sad memory in our minds; the memory of all those who lived through this devastating experience. But also in the minds of those who dread having to face such an experience one day.
Which tangible assets can we rely on during a crisis?
It is very important to have a tangible asset to rely on. But that doesn't solve the issue. For what tangible asset is most likely to protect our savings, a life's savings, an inherited wealth or the money of a company sold at a good price?
That's the whole question, because not all tangible assets are equal. Morals evolve, mentalities change, rules and laws are modified. It is also difficult to find one's way around all the options advertised as the ultimate remedy.
However, when we take a closer look, we notice there are few solutions today that offer a real guarantee, a real bulwark against insecurity. Let's take a look at these possibilities together.
Let's go back to investing in stone
Buying your own place to live is obviously an interesting solution, since it is indeed a tangible good. You can indeed reach out and touch your house walls. It is a good thing, and it is reassuring.
However, this acquisition must be compatible with your income. Let's not forget that as long as your property is mortgaged, it belongs, in fact, to the bank. Therefore, it is best to make sure that you have the means to fulfill your financial obligations at all times.
Thus, we should not be at the mercy of a difficulty, such as unemployment, an increase in mortgage rates with a salary that is too low compared to the expenses, a divorce, or any other difficulty in life that makes this effort too great.
As for an investment in real estate for a property that you want to rent out for a profit, there again, it is better to have a strong enough backbone to handle the cost!
We should never forget that as long as a property is mortgaged, it belongs to the bank and that the sense of security felt when purchasing it does not always withstand a devastating crisis.
Gold is also a very tangible good in the sense that it too can be touched. But for an investor, it can be a source of concern. Indeed, the price of gold varies, and when you invest your money, you are also looking for peace of mind.
In addition to its extreme volatility, especially in times of crisis, gold poses a problem of transportation and storage. Therefore, buying gold rarely gives you the opportunity to sleep soundly. On top of that, its storage in a vault at the bank can be problematic in the event of a crisis that puts the banking system in trouble.
So, while it is true that gold is a very concrete reality, it does not offer an absolute guarantee or security.
Purchasing works of art
Purchasing works of art, on the other hand, is an excellent idea. Indeed, there are artworks for almost every budget. The problem, in this case, is to find the artwork that you will be able to buy and profit from without trouble. But you may not be an art connoisseur! And, if you are, you may forget the initial objective of profitability and let yourself be carried away by passion.
This is where the Art Trading & Finance team can be of great help to you. Its two founders, one of whom is Michel Santi, are financiers with unquestionable expertise. After having created and managed a small SME with forty employees in Geneva, Michel Santi, his partner and their team have both a passion for art and the eye of a finance expert.
A double financial and artistic expertise at your service
It is indeed important to know how to appreciate a painting but also to be able to read its financial potential in numerical charts. These analyses, as well as ATF's knowledge, provide the perspective and the insight needed to combine financial and artistic skills in a relevant way.
A work of art is obviously a tangible good, which can also be touched, hung on the wall, lent to a museum or placed in a repository.
It is also a social and tangible proof of your very concrete success. In addition, you can also experience the joy of preserving your estate and making it grow.
Not to mention the fact that, through your acquisition, you are joining the growing number of investors who are doing good in the world. By making this investment, you are contributing to the development of art throughout the world.
While today we can see the ill effects of globalization, art is an activity whose borderless expansion is a wonderful thing.
Naturally, before purchasing a work of art, it is important that you are convinced by the professionalism of Art Trading & Finance, ATF. We hope that the success of its founders, the notoriety of Michel Santi as well as his avant-garde thinking will make you want to contact us to see for yourself the congruence of an approach built with logic and coherence.
Whether it is on the artistic, financial or logistical level, you will be able to see that a businessman who is both visionary and pragmatic can take a big thorn out of your side at a time when stock market values are nothing more than a speculative bubble ready to burst at any moment.
This way, a tangible good becomes a reassuring reality, spreading its beneficial effects on your assets. While the "world before" is losing its grip, you are consolidating your assets for the greater good of humanity.
We are looking forward to advising you, if you wish to contact us.
It will be our greatest pleasure to answer you.
Your team at ATF