Rare Coin Investing

Investing rare coins such as silver and gold can be very profitable but more importantly very exciting. Every silver and gold exchange matches professional numismatists and rare coin investors with the precious metals and high quality rare coins that meet their individual portfolio needs.

The modern market for rare coins is significantly different from what it was 40 years ago. A layer of security has been added for investors and collectors alike with the introduction of a wide variety of third party independent grading systems.

By making sure that every person can equally judge the condition and state of a rare coin, these professionals have helped make the playing field level. This allows even the most novice rare coin investor to understand the quality and value of rare coins. Aside from this, there are several advantages that an individual can obtain when they invest in rare coins from Monaco.

Helps Provide a Better Hedge against Inflation

The United States has not experienced high inflation for nearly 20 years, and it is a very distant memory for some people. However, many financial experts agree that the country is heading towards a higher inflation rate in the not-so distant future.

This is because the federal deficit is exploding, and the Consumer Price Index is rising. The long-term decline of the dollar’s value is persistent as the money supply is increasing. Inflation can have a significant effect on many investment options that are available today. However, many consider silver and gold rare coins to be one of the only investments that have the capability to perform better when inflation is steadily rising.

Tax-Deferred Appreciation

Rare coin investment also enjoys very good treatment from a tax standpoint. Investment in rare coins can steadily grow as tax deferred assets. A person who takes possession of gold or silver rare coins and retains them for a minimum of six months will be taxed at a much lower capital gains rate. Under certain circumstances, a silver or gold rare coin can qualify under U.S. section 1031 as a type of like-kind exchange. This allows investors greater flexibility for their portfolio to grow.

Portability
 
A lot of investors today believe that their portfolio should include portable assets. However, the definition that is intended to be applied here is assets with concentrated, significant wealth that can be transferred across international or state borders without registration, import or export duty and disclosure.

A significant number of portfolios are frequently dependent on assets that need some registration or disclosure for transportation. Nevertheless, prudent investors always seem to have a wide variety of options that are very portable so that they have assets with concentrated and significant wealth that are available to be utilized.

Moving gold and silver rare coins from one place to another can be as simple as transferring them in a person’s wallet. A single gold rare coin that is packaged in a third party plastic holder is about as thick as a pen, the size of a debit card and usually weighs less than three ounces. At the same time, it has a concentrated wealth in denominations that a person can select.

Privacy

Unlike the large majority of other types of major investments, silver or gold rare coins are not subject to Federal Disclosure Rules. There are no reporting requirements for either liquidation or purchase of the investment as long as the silver or gold rare coin that has been bought carries a minimum 15 percent premium on its metal content. This enables an investor to create either a silver or gold rare coin portfolio in complete privacy. There are few investment options that offer this.

Liquidity

With advent of the independent grading services such as PCGS and NGC, silver and gold rare coins are one of the most liquid collectibles available on the market today. Since 1963, this industry has benefitted from a dealer price sheet that is published for all vital U.S. coins.

No other type of collectable market contains a pricing structure that is published as accurately or as often as silver or gold rare coins. Many of these coins can be sold in a few days to a few hours if needed. Additionally, there are coin shows and major auctions every month that allow even more flexibility for changing investments into cash when the right time comes.

Transferability

Responsible protection plans and wealth planning frequently include significant preparation regarding the transfer of wealth from one generation to another. Coins are lightweight, small, value-concentrated bearer instruments that can easily be transported around the world to promote wealth transfer.

Diminishing Supply
 
Diminishing supply is another very important but subtle investment advantage. The number of quality rare gold and silver coins diminishes daily as a result of neglect, abuse, melting and demand. This brings a twofold advantage. Any increase in the demand for silver and gold rare coins makes price increases more likely. This is the only way that demand can be satisfied.

At the same time, a limited supply of silver and gold rare coins helps reduce the downside risk. As prices steadily decrease, production gluts do not depress prices any further. It also hinders price recovery. Additionally, rare silver and gold coins are driven off the market if the price is not right.
 
Affordability

An investment in rare silver and gold coins is more affordable than most people think. Although these coins have a high price tag that can reach up to $50,000 per piece, a person can actually start their collection with only $100. If they want the rarest and finest US collectible coins, they may have to spend a lot of money that can range from $500 up to $10,000. Still, this is much smaller than the usual amount that a person needs to invest in things like the real estate market.

Appreciation

Even with all the advantages of investing in rare silver and gold coins, a person should always remember that appreciation is the most important goal of any type of portfolio component. A person’s investment strategy should allow them to withstand any type of economic environment. Hard assets such as silver and gold rare coins are an important part of a well-rounded portfolio.

Maintaining appreciation throughout a portfolio is the most important financial planning goal. Achieving this requires portfolio assets that have different characteristics. This helps the investor to allow for appreciation in a number of areas to offset times when other forms of investment may be performing at a much lower level.

Resources

http://www.dgse.com/Education_Guide/guide-to-investing-in-rare-coins.aspx
http://www.finweb.com/investing/6-advantages-of-rare-collectible-coin-investments.html#axzz2a0aDD35y
http://fspinvest.co.za/articles/alternative-investment/four-fabulous-advantages-of-investing-in-collectible-coins-970.html

Rare Coin Investing
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