The Rare Coin Outlook

Whether it’s stocks and bonds, gold bars, or rare coins, it’s impossible to know exactly what the future holds when investing money into virtually any mechanism. With that said, there are several indicators and trends that make it possible to craft a general outlook and guideline to an upcoming year’s investment climate and the real possibilities that will greet investors as they kick off a new year of both stored value and traditional investing. Rare coins are no exception to this rule, and there are some pretty exciting trends forecast for the upcoming year that cater directly to enthusiastic investors.

Before setting goals for next year and pursuing investments using 2013’s general guidelines, it might be worth considering anticipated developments in gold and silver, as well as opportunities in both domestic and foreign markets for coins of all types and bullion concentrations.

Silver Coins: A Promising 2014 Outlook Across the Board

Talk to virtually any analyst or big bank investor, and they’re likely to somehow guide the conversation toward their enthusiasm for silver during the upcoming year. It doesn’t matter if their investment preferences are in coins, cash, or stocks: Silver is a big deal this year. According to CPM Group, the metal that almost always trades at rock-bottom prices will likely start a major rebound this year that continues for up to a decade. Other investors recommend using caution, noting that they expect silver’s rise to be relatively bumpy until at least 2016.

No matter how long it takes, however, one thing remains true: In the long-term, silver looks to become a more valuable and higher-priced metal. That’s thanks to developments in the tech sector and a larger anticipated demand for silver in numerous applications through at least 2025. For rare coins, that means steadily increasing prices on those comprised primarily of silver bullion. For investors that have spent quite a bit of money on a silver portfolio, this could be the year that finally sees that initial investment pay off. Don’t sell these coins just yet.

All that Glitters: Gold Forecasts Revised Up for 2014

While silver might be the most promising precious metal in the long-term, gold remains king of the hill when it comes to per-ounce prices and the impact on rare coin investing. Though gold has been largely flat this year, numerous analysts do expect trading activity to pick up in the new year, with modest declines at first and an overall increase in value by the end of next December. That should cause most rare coin investors to exhale a sigh of relief. For some time, the promises of an economic recover in the United States loomed on the horizon as a potential investment damper, one that might reduce prices beyond a sustainable level.

Today, however, that looks like it might hold off for at least another year. Analysts had expected a stronger economic recovery in 2014, and had therefore reduced expectations for gold bullion throughout the upcoming year. After continued struggles in Europe an the federal government shutdown in the United States, however, growth slowed considerably and gold enjoyed virtually all of the benefits. This is the time to buy and hold gold coins, though this may be the last year for that strategy. Only time will tell.

Taking Over: Palladium Will Continue to Make Headlines in the Upcoming Year

Platinum is often considered the king of all metals, sold at an extreme premium on the consumer market and demanding of a certain premium in rare coins when bullion levels are highly concentrated. Or at least, that’s how things used to be. In 2013, the value of platinum has actually been eclipsed by its sister metal, palladium. That isn’t a freak occurrence, according to analysts at several major banks around the world.

Instead, they expect to see palladium continue to rise in value as it becomes more commonly used in industrial applications throughout the United States and around the world. It’s long been known that platinum is transitioning away from being one of the “industrial metals,” and this might simply be a result of the ongoing transition to a world where platinum is more of a consumer good than an industrial demand. For those investing in rare coins, platinum is expected to at least remain stable in value. Some investors may wish to divest their platinum coins, while others would be just as smart to hold on to them in case industrial buying changes at some point this year.

For Silver, Platinum, and Palladium, Keep an Eye on American Manufacturing

Astute investors have probably noticed that American manufacturing, while no means booming at levels seen in the mid-20th century, seems to have made something of a comeback. In recent months, numerous car manufacturers have committed to new factories while high-tech companies like Apple have moved some production to the United States from overseas. Such moves have a direct impact on the value of precious metals and they therefore directly impact rare coin prices as well.

If American manufacturing makes big moves this year, even the most optimistic analyst forecasts for precious metals and rare coins will be considered humble in retrospect. Silver’s growth is primarily projected as a result of changes in the American manufacturing landscape, but those changes are expected to take at least ten years. If American industrial growth moves ahead of schedule and demand increases for this metal and other “industrial metals,” rare coins will grow in value accordingly. Keep an eye out for stories in this particular niche and, if necessary, buy early before domestic developments drive coin prices considerably higher.

A Word of Caution: Don’t Forge to Use Trustworthy Investment Sites

Rare coin investing is understandably growing at a pretty rapid clip, and that’s because most Americans have learned the value of diversification when it comes to betting their finances and retirement prospects. That’s undoubtedly a good thing. Unfortunately, every trend like this comes with a series of scams and nefarious characters who are looking to profit off of those consumers who trust a bit too easily.

When investing in rare coins, the one thing to keep in mind is that there’s no federal regulatory agency overseeing the process. Instead, these processes are governed by professional guilds and societies that monitor the industry, certify trading sites, and protect consumers in a slightly different way. Groups like the Numismatic Guaranty Association and the American Numismatics Society have thousands of members and lend their seal of approval to websites like individually. Always check for these seals of approval before trusting any merchant to grade coins fairly, price them within market expectations, and provide long-term help and support for investments now and in the future.

Rewarding Prospects in 2014: A Great Year Lies Ahead for Rare Coin Investors

Rare coin investing has really taken off over the course of the last decade, propelled by a growing numismatic interest at large, and the challenges of the economy at home and abroad. This year, some major changes are afoot: Platinum may well take a permanent backseat to palladium, while silver may become the go-to metal for investors this year or by 2016. Gold may finally reach a point of stable growth, and consumers may settle into new patterns for years to come.

As with all outlooks, it’s important to use these anticipated trends merely as a guide. Remember to follow the latest economic news and developments, as these may more accurately predict prices, trends, and pitfalls, for investments made in 2014 and beyond.

The Rare Coin Outlook
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