Do you know what your car sounds like without a catalytic converter? Hopefully not but, unless you’re careful, you might find out. A recent rash of converter theft and the subsequent surge in platinum business at local recyclers is more evidence that Jason Hartman may be onto something with his idea of Packaged Commodities. You remember the gist? The parts of an investment such as a car or house are worth more than the sum of the whole.
A few years ago, when copper prices were soaring, we heard stories of thieves breaking into construction sites to strip electrical wires from the walls for the copper content. These days it’s platinum that’s soaring and where do you find the stuff? One place is in the catalytic converter in your car. So if you come back from working out at the gym, crank the key in your automobile, and it sounds like a Harley-Davidson rumbled to life beneath you, there’s a chance you got hit by a converter thief. His next stop will be the recycler and then probably a meth dealer.
We’re not here to comment on poor life choices made by recidivist criminals but to point out that the concept behind Packaged Commodities investing is valid. The sum of the parts is greater than the whole, thus the attractiveness of a catalytic converter containing platinum to a criminal. Houses are attractive to investors for the same reason. No, not to strip the materials from the walls but to realize that it is a consistently appreciating asset. Much more reliable than stocks or bonds.
And you might want to park closer to the gym entrance next time.
The Creating Wealth Team
Flickr / richardmasoner
