In the current economic environment, you would think that selling a painting would be difficult, notes Cekerevac. He says that the rich are looking for ways to trade their paper money for something that’s concrete, whether it’s gold, jewelry or art.
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New York, NY (PRWEB) June 14, 2012
In a recent Investment Contrarians article, editor Sasha Cekerevac states that real inflation is being understated by the government. Higher real inflation means that paper money is becoming worth less every day. Cekerevac believes the trend out of paper money—the U.S. dollar—is evident by investors pouring money into art, because the rich understand that the U.S. dollar will eventually trade at its true value: zero.
“…with Europe falling apart, unemployment still very high in the U.S.—why would people be throwing money into art?” asks Cekerevac. “Because they would rather have a painting than paper money.”
We just recently saw the sale of Edvard Munch’s “The Scream;” it sold for a record of almost $120 million.
In the current economic environment, you would think that selling a painting would be difficult, notes Cekerevac. He says that the rich are looking for ways to trade their paper money for something that’s concrete, whether it’s gold, jewelry or art. Cekerevac thinks we should pay attention to this trend.
The next night, more art went on sale and more records were broken. Looking at the total sales for the evening, $380 million in art was sold, as compared to an estimate of only $330 million.
Cekerevac feels that the super-rich wanting to trade their paper money for a hard asset is a strong sign of the U.S. dollar not worth the paper it’s printed on.
The editor believes that real inflation is destroying middle- and lower-income America. The average American is worse off today than they were 15 years ago or even 40 years ago.
This can also be seen as a theft perpetrated on savers, those who buy bonds and depend on stable income, according to Cekerevac. Savers in bonds are now losing money to real inflation every year.
“Society cannot continue to function when Middle America and savers are handcuffed to a future that will guarantee their standard of living will decline every year for the next several decades,” concludes Cekerevac.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.