Even with the huge downturn in the economy, and the escalation in popularity of investing in gold, silver and rare coinage, it is quite possible to locate rare coins still in circulation. For those lucky enough to purchase them at the right price, there is a lot of profit to be generated from investing in precious coins.
With the fluctuating volatile stock market and bond market, many investors turn to investing in precious coins to seek the most beneficial solution for their investment portfolio. However, it is critically important to select the best coin dealers with a high reputation of selling quality product at a reasonable price. Understanding where to buy and sell precious coins can make any portfolio increase in value.
Protect against Inflation
A numismatic (rare) coin can help investors protect their savings against inflation and economic uncertainty in the financial markets. Many speculators and collectors enjoy acquiring rare coins in an effort to diversify their investment strategy. Through careful selection of coins, investors can acquire tangible hard assets that will significantly increase in their worth over time, no matter what is happening in the economy.
Many financial investment advisors recommend their clientele diversify up to 20% of their portfolio with hard (tangible) assets, including investing in precious rare coins. Historically, they have consistently generated long-term price increases during nearly every period of economic stagnation and growth. Investors choose to invest in rare coins because of the security and peace of mind they provide.
Performance That Is Time-Tested
All throughout history, many collections of rare coins have generated substantial profits in the long-term for their investment owners. When stacked up against other investment options, collecting coins has generated substantial profits. Using a financial worth measurement from the early 1970s until the early 2000s, the S&P 500 index, when calculated with its reinvested dividends, appreciated at an average of 12%. In relationship to the Index, the rare coin market and an annual increase of 13.4%. This resulted without any of the fluctuating volatility experienced in the stock market.
Overall, the fluctuating spot prices of gold, silver and other precious metals have very little to do with the continuing rise in value of rare coins. The value of the coin is mostly determined by its aesthetically appealing condition and rarity, and not so much the content of its precious metal. On average, coins of low mintage that are displayed in high pristine condition will continually produce the highest premium prices, and greatest worth.
Investing in Precious Coins
For any investor interested in buying precious coins, it is important to have every purchase certified and authenticated through independent grading firms to ensure its worth and quality. Successful investors always ascertain hard empirical data to gain full knowledge on the coin’s grade or specific issues. It will also help determine scarcity of each particular rare coin.
Even though past performance is never any guarantee of results in the future, the historical value of investing in precious coins has always proven to be on the increase. Rare coins produce impressive returns in the long-term.