Rare coin outlook

The forthcoming Congressional debate over the debt ceiling in January 2014, coincides with the confirmation of Janet Yellen as the U.S. Federal Reserve Chair. The result of a series of easing policies designed to gain control over the national debt, the near future outlook for the economy is raised spending and larger budget deficits. This will have an effect on the precious metals trade, including the exchange of rare coins.

The prediction that Yellen’s entrance as the Reserve Chair will initiation of a tapering strategy of inflation in as debt investment easing strategies subside, will usher in a new cycle of higher prices and expansion of the money supply. While economists suggest that a rise in interest rates in the second half of 2014 could have a negative effect on gold market performance, experts also point to other factors continuing the stabilization effect offered by gold and precious metals trading into the future.

Investment analysts indicate that gold and precious metals values in near future cycles will likely be prefaced by speculation activity, followed by a shift to hard asset investments. Precious metals pricing is guided by gold prices, and in particular the London gold exchange intra-day pricing report. Oil prices also impact precious metals prices in correspondence with gold pricing on the commodity market. If interest rates rise, a shift away from precious metals may been seen in the domestic market, yet this is not predicted globally.

Global Demand for Rare Coins
The demand for gold and precious metals has seen an accelerated pace in the past several years. Emerging markets in Asia and Southeast Asia have generated increased demand for gold and other precious metals. Use of silver and platinum in technological manufacturing components is a major driver in sales of those two precious metals to the emerging economic giants in the region. What has come out of this trend in mass importation of silver and platinum to Asia and Southeast Asia, is a synonymous demand for rare coin trading.

The precious metals trade in rare coin assets is not surprising given the economic, policy and political forces constraining investment by individual investors in those countries. This is especially the case for the growing middle class investor, who is seeking portable, risk-free options in physical gold and precious metal investment. Coins, bars and bullion are highly sought after for their rarity, intrinsic value and consolidated value in a portable form. Safe-haven investments for individual investors looking for surety and guaranteed value, rare coin trading is forecast to drive fabricated precious metals demand.

Investing in Rare Coins
Mintage of coins is quite clearly varied in terms of date, type, condition and rarity. Grading of rare coins for offer on the fabricated precious metals and collectors markets serves as the assessment rating in determination of a coin’s value. If a coin is rare, wealth retention is highest. Investors in economies where inflation is high, and currency undergoing devaluation, may offer more for a rare coin than in other markets. Buying physical gold, silver and platinum in fabricated form is a safe method of ensuring that initial liquidity is sustained.

For investors in North America, coins from the national mints serve as convertible and tax-free investment vehicles. Unlike other investment options, rare coinage is exempt from audit reporting. By transferring other portfolio assets to a rare or antique coin investment, taxpayers are alleviated of monies that would otherwise be owed to the government. Although tax exemption has undergone some amendment in U.S. states historically, the reinstatement of tax-free status for rare coin investments has been preempted by federal law.

Investors interested in investing in tangible rare coin assets can find out more by visiting one of the many expos offering auction and showcase of rare coin collections. Dealers specializing in rare coinage can offer important insights into mintage, grade and trading value. Quality rare coins continue to retrieve high priced returns at auction. Much like fine art, the most rare hold exceptional consolidated value that can be once again liquidated at time of sale.

The popularity of auction houses shows that the expansion of the rare coin market is on the horizon. The demand from international bidders for high-end, U.S. rare coin mintage illustrates the long-term vestiture independent investors are making in the rare coin market. Sometimes investors also get a deal.

If an unusual coin is not graded as high as it could be by an evaluating numismatist, a buyer can literally walk in a bid lower than consolidated value if comparable valuation is not adequately sourced. Bas-relief bronze casts are an example of this deviation in pricing, as they tend to be unique, and originally designed for die preparation for casting of a series of minted coins.

Rare Coin Asset Portfolios
The demand for hard asset investments such as coins, bars and bullion exhibits the longevity of precious metals as a safe-haven opportunity. The silver market in India has been especially strong in promoting rare coin asset sales in silver. The market for silver bars and silver coins saw some decline in 2012, but recuperated with accelerated growth in 2013 in response to economic instability and national tax reforms.

The protection of new wealth in silver rare coinage is turning out to be a solution for many investors worried about portfolio liquidity. While illiquid assets do not always demand an excessive sale over purchase price, they hold value in a market where investors are also seeing a devolution in exchange currency. The prediction for 2014 is that rare coins will continue to be a robust investment both in the U.S. and abroad. Investors all share the same concerns, as the economy continues to ebb and flow against market and national policy transformations.

There is nothing more stable than a precious metal asset. Due to the fact that other assets can be transferred to investment physical precious metals, it is likely that U.S. government predictions that investor response in the latter half of the forthcoming year will be realized. The fact that the economy is also seeing higher industrial demand for precious metals, amid a climate of investor preference for hard assets and particularly coin and bar purchases are strong indicators that the rare coin market is on the upswing.

Expectations that silver prices will rise above the average $33 an ounce seen in 2013, are tempered by foreseen interest rate increases. At the present time projections of silver’s $31 per ounce price in 2014 advance the suggestion that silver trading will be hot. With prices lower than the past year, rare silver coins will be in great demand. Even if silver lost some of its sovereign backing during the Euro-zone crisis, the increased importation of the precious metal in Asia and Southeast Asia has created equilibrium across the market.

Safe-haven assets such as U.S.Treasury coinage will still attract a large investor pool of interest in the next year. Diversification of silver and platinum over gold is also an indicator that more of the same will be seen in emerging economies as investors strive to add balance to their portfolios. In spite of the lack of free-play and exposure that rare coins offer in comparison with exchange traded funds (ETFs), mining stocks, mutual funds, options and futures, the rule that safe-haven investments are mechanistic in uncertain times holds true.

Rare coins are a great hard asset investment for any portfolio. For information about how you can become a rare coin investor, contact Monacorarecoins.com.

Rare coin outlook
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