The real cost of inflation and why luxury watches might be the shrewdest investment

The real cost of inflation and why luxury watches might be the shrewdest investment

I don't pretend to be an authority on global finance. Likewise i've never really approached the idea of collecting watches as anything more than a passion pursuit. However recently I've begun to notice (along with people far more qualified that me) that inflation is creeping ever higher and sooner or later the Bank of England will be forced to do something about it. With a great many commentators forecasting a significant rise in inflation (maybe even to double figures!)  and with a post pandemic world demanding greater investment and spending, the good people of the Monetary Policy Committee (who control our interest rates) find themselves in a tricky position. 

Ordinarily the response to higher inflation would be an increase in interest rates to cool an overheating economy. But with the country emerging from the greatest financial shock in 300 years that policy is almost nigh on impossible. Which means interest rates will have to remain low for many quarters to come.  The result will almost certainly be much higher inflation than the Bank of England would ordinarily like. The other consequence is that money, in it's purest form will become worth less and less. Your money that is.

I'm not pretending that investing in vintage watches is the panacea of all investment opportunities but the fact remains that in times of financial turmoil (I think the current situation counts as such!) the smart investor will often move money in commodities such as gold and other investible luxuries.

All of which is a long way of saying that my guaranteed full value future part exchange scheme is now becoming something more than a way to just protect your money for the longterm, it could actually be a way to almost lock in an increase in the real value of your money. 

Of course not everyone wants to invest in that way, but even if you are sitting on the fence about taking the plunge for that much admired timepiece, now might be the very best time to take that step. There is no such thing as a guaranteed yield, but sometimes the economic outlook points you to an obvious conclusion. I think that time might be now. 

And don't forget, looking at a beautiful timepiece that is also safe guarding your cash is a much nicer experience that just looking a bank balance that is depreciating by the day!




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