In a pandemic, food, alcohol and guns retain the best value
Loans secured by food, alcohol and guns hold up better than debts related to other commodities, as buyers increasingly turn to these products amid coronavirus social distancing restrictions .
Food and beverage suppliers such as supermarkets, drugstores and mass discounters have mostly remained open during the pandemic, meaning the value of what they sell has not been affected much, according to the liquidation company SB360 Capital Partners.
As for firearms, troubled times are good for sales.
“In the past, we have seen that uncertainty and times of heightened fear and / or impending political upheaval have been beneficial to firearms sales and the demand for ammunition,” said Alex Sutton, head of research within the valuation and asset liquidation company Gordon Brothers Group. LLC. “The coronavirus has certainly made them both endure. “
The pandemic has shaken assumptions about asset values and forced valuation experts such as liquidators and asset lenders to reconsider some of the conventional wisdom on lending based on estimated liquidation values of assets and their associated values. potential risks. Their activities depend on identifying which elements will be most affected and when their values are expected to stabilize.