Anyone in Russia? Now might be a good time to book a trip....
How to Legally Steal $35,000 from Vladimir Putin
http://www.zerohedge.com/news/2016-07-15...imir-putin
The Russian ruble has become so cheap, however, that some of its coins are basically worthless.
The 1 kopek coin, for example, is the smallest denomination Russian coin that’s worth 1/100th of a ruble.
At current exchange rates that’s $0.00015, or about 0.015 cents! It’s nothing.
And yet each kopek coin is comprised of 1.5 grams worth of copper, nickel, and steel; and the melt value of these metals is worth a hell of a lot more than 0.015 cents.
In fact Russian coin dealers have estimated that the metal value of this coin is worth more than THIRTY FIVE TIMES its face value.
That’s quite a return on investment.
So theoretically $1,000 worth of these coins could be worth more than $35,000 in profit because of the metal value.
Now, I’m not suggesting you book a flight to Russia to scoop up and melt down all the coins you can find.
But it’s worth pointing out that these sorts of anomalies don’t come around too often. And when they do, it’s important to pay attention.
Jim Rogers is one of many legendary investors who has been buying in Russia. Templeton’s Mark Mobius has called Russia the “bargain of the century.”
He may be right. Russia is incredibly cheap.
That’s not to say it can’t get cheaper. Or that it can’t stay cheap for a while.
There has to be a catalyst in order for all the pent-up value to be realized.
But that seems to be happening now. Slowly. Russia is mending fences with Europe. Oil prices have climbed 40% from their lows. Capital is returning. It’s getting better.
18th century British banking mogul Baron Rothschild is often quoted as saying “Buy when there’s blood in the streets [even when that blood is your own].”
That may be too hardcore for most investors.
I prefer to buy when assets are still ultra-cheap, but there are obvious signs that things have turned around.
That time seems to be now.