Did you know flowers were once currency?
In the 1600’s tulips were used as currency in Holland, with some species value being a year’s wages for a bulb. They were used to buy and sell goods in place of money and yes people would even buy houses with them.
Seems rather speculative to spend so much on a flower. What a gamble on something like nature, that has the ability to do its own thing including mutate which made for a rarer and thus more expensive flower.
For those of us who enjoy gardening and caring for plants, you may be able to relate somewhat to the joy flowers can bring?
During that period of time when we were at home more in Melbourne, I experienced something similar in the form of a rare pink philodendron that I purchased albeit for a premium, but what makes this plant more valuable is the pink mutation. The goal is a fully pink leaf.
What has this got to do with investing? It is supply and demand because the financial markets work in a similar way. People buy into the future of something (mostly upside). The more people want something, the more they will pay and the higher the price will go.
The downside of this is also human emotion. What happened when the tulips in Holland fell out of favor, the tulip market crashed. Nothing inherently changed about them, perhaps the market was flooded and the appeal was diluted. We have seem similar market crashes and some of us have learned to hang on for the ride and not panic sell, because this forces prices down. I used to trade the market every day and I saw this display of human emotion especially during the Global Financial Crisis when people sold their portfolio of shares in a panic, because they didn’t want to lose everything, or so they thought.
The drivers are the fear of missing out and the fear of losing everything. So people pay up and sell down. My clients and I have discussions when there are big movements in the market and we have a long term plan, that keeps us in good stead.
I like the idea of people growing their own plants and food. Bartering is a wonderful thing and the exchange of fruit/vegetables/plants creates community and engagement with people in the world around you.
Perhaps gardening is something you are willing to take the risk on but not your investments. Having a financial planner to talk to when you feel uncertain and need advice can ease your mind. Some like myself may talk to you about your plants and flowers.
I now have a collection of pink princess philodendron (Philodendron erubescens) plants that I might need to start trading.
General Advice Warning: The information in this post has been prepared for general information purposes only and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this post, consult a professional financial advisor like myself to consider whether it is suitable and appropriate for you and your personal needs and circumstances