[meteorite-list] Opinion of Current Trends in Meteorite Prices

From: Walter Branch <waltbranch_at_meteoritecentral.com>
Date: Thu Apr 22 09:48:56 2004
Message-ID: <003101c13747$6b5ac100$2053fc9e_at_cc516468a>

Hello Everyone,

Meteorites as investments? No way!

Lets compare meteorites with a more traditional investment vehicle, stocks.

Meteorites are an unproven investment. Indeed, I would not even classify
meteorites as investments as they more properly belong in the realm of
"speculation." Unlike stocks, meteorites have not "weathered" through
several business cycles (rising and falling and recovering cycles). I made
money in the US stock market today because I sold short. I could have also
made money by buying and holding until the market rises. The market goes
up; the market goes down, etc. We have irrational exuberance for many years
then we are on the verge of a recession. Both markets present the investor
with the opportunity to make money

I have collected stamps off and on for 30 years. The retail prices of
stamps were relatively stable for a long time, then speculators got into the
"market" in the late 70s and early 80s and the prices shot up as fast as a
meteor descends through the earth's atmosphere (okay, maybe not that fast
but you get the point). When the speculators sold and moved on, retail
prices dutifully obeyed the law of gravity and plummeted. Retail prices in
general have not yet recovered. Of course, there are exceptions.

Sound familiar? Is the analogy on sound footing? You decide.

Other points to consider. The liquidity of meteorites cannot match stocks.
I can sell any of my stocks tomorrow in a matter of seconds and have the
proceeds delivered to me in three days. Also, with meteorites you can't
sell short (and thus make money in a falling market - like today). Finally,
with meteorites the collector's emotions come in to play with "pride of
ownership" issues and thus may interfere with buying and selling decisions
(not good for objects that are supposed to be investments). I do not
"collect" stocks. Similarly, the real estate investor does not "collect"
real estate. It even sounds funny, doesn't it?

In sum, I would suggest that one collect meteorites out of pure enjoyment,
admiration, pride of ownership and respect for what they are - messengers
from beyond our little world. I collect meteorites for fun and I buy and
sell stocks to make money and ner the twain shall meet!

On the other hand, I have a beautiful 3+ gram slice of Zagami with fusion
crust. If anyone offers me 5k/gram for it, it will immediately go from
being a collectable to an investment but short of that, it remains a
collectable :-)

Happy Collecting!

-Walter

-----------------------------------------------
Walter Branch, Ph.D.
Branch Meteorites
322 Stephenson Ave., Suite B
Savannah, GA 31405 USA
www.branchmeteorites.com
----- Original Message -----
From: "Tracy Latimer" <tracyl_at_lib.state.hi.us>
To: "Bob King" <lakewind_at_infi.net>
Cc: "Martin Horejsi" <martinh_at_isu.edu>;
<meteorite-list_at_meteoritecentral.com>
Sent: Thursday, September 06, 2001 9:55 PM
Subject: Re: [meteorite-list] Opinion of Current Trends in Meteorite Prices


> I reiterate: Don't collect meteorites just because you expect them to make
> a load of money. If you also love them for themselves (scientifically,
> beauty, the "neato" factor, whatever) you will never be disappointed in
> your collection. I know my meteorites are the niftiest nonmoving thing in
> our house.
>
> Tracy Latimer
>
> On Thu, 6 Sep 2001, Bob King wrote:
>
> > Dear Martin,
> > Your last comment was beautifully put and so very true for many of
> > us collectors on the list and off.
> > Bob
> >
> > > Tracy kindly wrote:
> > > Collecting meteorites is like collecting comic books... or oriental
> > > > rugs... or any other collectible."
> >
> > >
> > > If one wants to think of meteorites as an investment, that is fine.
But they
> > > are not a monetary investment, but rather an investment in knowledge
and
> > > imagination.
> > >
> > > Cheers,
> > > Martin
> >
> >
> >
> > Check out the new Meteorite Central logo wear at
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> >
>
>
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Received on Thu 06 Sep 2001 10:47:21 PM PDT