Fred Dashevsky

The Real World of Money

Fred Dashevsky is from Long Island New York. He attended University of New York at Albany and studied psychology, political science, and economics. Fred started in the coin business in 1984 in Northern New Jersey opening several offices in Southern California in the mid 80s. He returned to the east coast in 1989 and opened Hilton head office for SDL Inc. in 1991 with partner Andrew Gause. He has since opened his own business, U.S. Coin Capitol. Give him a call for your numismatic gold investments 800.878.2646

They’re blaming everything on Ukraine now.

Volatility in gold.  Was from growing inflation, now from juggling after the Ukraine invasion.

How will the stock market be impacted?  Have been significant changes in Federal Reserve system even before Ukraine.  Now underlying valuation becoming important again.  Fed will not be so accommodative.

Companies drove up their stock price, not by changes in valuation, but by purchasing their own stock.  Big companies got to borrow money for next to nothing.  That game is coming to an end with the increase in borrowing costs from higher projected interest rates.

Fed didn’t stop accommodating soon enough.  Money now pouring in from other countries.  Inflation rate now up to what it was in 1982.

50% drop in value of Russian ruble this week. 

We have weaponized money.  Instead of boots on the ground, we’re attacking country’s economies, e.g. by removing SWIFT.

Large increases in oil prices within days is a reflection of the speculation.

Don’t get overexcited by short term changes in metal prices.

Premium value for numismatic half-dollars over smaller denominations.  Whatever is out there is it.  Will be no increase in supply.

Gloria asks if she should sell silver dollars now or later.

The end result of creating money is prices go up.  The first result is increase in supply.

Gold and silver coins are a diversification tool.  Recommend 15% of assets as a minimum.

Fed has 9 trillion dollars of Treasuries on their balance sheet.  Fed will need to unload them eventually.  Massively high balance indicates lack of market for others wanting to buy US debt.  Shows a lack of confidence in the US government. 

Human nature for people to wait until gold and silver prices go up before they buy numismatics.

KMF asks if numismatics are like art in value?  Yes and no.  Are common rare coins and truly rare coins.

High likelihood of numismatics becoming much more valuable in the future.

Fed realizes they made money too cheap.  Now need to navigate between raising rates high enough to tame the inflation dragon and not so much as to choke the economy.  We’ll see a lot of volatility on a daily basis.  Stocks will rise now only if they are making a profit.

Leon asks:  When will silver make the big move?

DOW Jones index that tracks Russian receipts plunged 98% in 2 days.

Apple and Google payment systems block Russian transactions.  Devastating effect on Russian residents.

Patrick paid triple the usual cost to fill his propane tank this month.