Considering an Investment in Rare Coins

Investment Opportunities

The opportunities for successful investing in quality numismatic items are as great today as at any time in the past. Inexperienced buyers can now easily purchase coins that have already been graded and authenticated by third-party services to assure their quality, without having to interpret complex grading standards themselves. Furthermore, the fact that rare coins make sound investments is no secret. The impressive performance of rare coins has been featured numerous times in the Wall Street Journal, Barron’s, Money Magazine, and other reputable financial publications. The following section elaborates on the specific reasons why rare coins make superior investments.

  1. Rare Coins Demonstrate Top Investment Performance

Throughout history, rare coin collections have produced substantial long-term profits for their owners. Many investors today are finding stock market performance to be too volatile, and at times, downright depressing. Diversification into other investments like rare coins may be the answer. And for those who have already invested in rare coins, now may be the time to take a more aggressive position.

  1. The Demand for Rare Coins Exceeds their Supply

The demand for rare coins considerably exceeds their supply. By definition, there are relatively few rare coins in existence.

Although there is currently a great demand for rare coins, some investors ask whether that demand is likely to be present 20 years from now. Fortunately, the viability of the future numismatic market looks strong. In short, the demand for rare coins is not expected to go away anytime soon.

  1. Rare Coins have Great Liquidity

With the advent of the independent coin grading services like PCGS and NGC, rare coins have become the most liquid collectables of all. On a typical trading day, thousands of certified rare coins are bought and sold “sight-unseen” on electronic numismatic exchanges, and thousands more are sold directly to collectors and investors at coins shops and public auctions. Since certified coins sell faster than uncertified coins,

  1. Rare Coins are Affordable to all Investors

Compared to other collectables such as rare oil paintings, or investments like real estate, many rare coins are very affordable. Despite their record of consistent price gains and the multi-million dollar collections often sold at auctions, rare coin portfolios with outstanding track records and promising futures are available in a wide range of investment levels. Quality coins with strong investment potential can be purchased for as little as one hundred dollars or less. At the same time, there are more than enough six and seven-figure specimens to keep even the investor with the deepest pockets very busy.

  1. Rare Coins are a Private Investment

Rare coins are one of the few remaining investments that can be accumulated privately. Since coins are highly liquid and easily transportable, coins are attractive to investors who do not care to tell the rest of the world what they own. No one will know what your numismatic portfolio is worth, or that it even exists in the first place.

  1. Rare Coins are a Great Portfolio Diversifier

All investment professionals agree that an investment portfolio should be diversified. Many financial advisors recommend that investors place 20-30% of their discretionary funds in tangible assets to achieve a properly diversified portfolio. Rare coins stand out as the ultimate portfolio diversifier. For one, they have proven to be an excellent hedge against the effects of inflation. Although renowned for their performance in periods of high inflation, rare coins have generated strong long-term price gains in virtually every period of economic growth over the past thirty years.

  1. Rare Coins have Historic Beauty

At the very least, rare coins are beautiful works of art. Rare coins are direct links to a rich heritage and are as timeless as history itself. Rare coins acquaint investors with historical figures and events, no matter how far removed by time. The satisfaction of actually owning a piece of history from a bygone era makes investing in rare coins truly unique. This is undoubtedly something that a monthly statement from your bank account can never offer.

Investing in rare coins could help protect and grow your wealth

Investment Opportunities

Investing in rare coins is a passion that compels people to travel all over the world for shows, conventions, auctions and to secure private sales.  It is a heritage asset market that continues to break records at auction.Warm Autumn Investments specialises in providing unique investment opportunities, focused specifically on the Commemorative 90

Warm Autumn Investments specialises in providing unique investment opportunities, focused specifically on the Commemorative 90th Birthday Nelson Mandela Coin.

We put our expertise at your disposal to offer you entry into this market as a potential store of wealth for the future.

The benefits of investing in rare coins:

  • Rare coins are a strong, tangible, heritage asset
  • They are not correlated to other mainstream assets
  • Largely unaffected by volatility and downturns in other markets
  • Rare coins have been collected and used as a store of wealth for centuries

You don’t have to be an expert to invest in rare coins; because that is what we are here for. With just a few clicks you can own a slice of history and potentially grow your capital. Speak to one of our experienced Portfolio Managers for a completely free, no-obligation consultation to discuss your options. Follow the Contact Us link on our website, complete the form, and we will be in touch within 24 hours.

Short History of Coin Grading

History

The rarity and condition are key the factors to establish the value of a coin. Rarity is easy to establish, as there is widespread agreement on the rarity of most coins. To evaluate the condition of the coin it is more challenging. In the early years of coin collecting, three general terms were used to describe a coin’s grade:

  • Good: Details were visible but circulation had worn the surface
  • Fine: Details were less worn from circulation and a bit of the mint lustre showed
  • Uncirculated: Details were sharp and there was a lustre approaching the state of the coin at the mint, prior to general circulation

In the late 1800s and early 1900s, the collector market grew rapidly, and the need for a more precise coin grading standard became apparent. Not all the coins were the same. Some coins were simply finer than others, and some coins showed more lustre and far fewer marks than others. The terms like ‘gem uncirculated’ and ‘very fine’ began to be used. The more precise grading descriptions meant more precise pricing for the growing collector market.

In 1948, a well-known numismatist by the name of Dr William Sheldon developed the Sheldon Scale of coin grading.  He gives a more precise meaning to subjective terms such as FineVery FineExtremely Fine. His scale runs from one to 70.

The biggest challenge in any coin grading system was minimising the subjective factor.  Two different experts could examine the same specimen and arrive at different opinions of the grade because the standards up to that time have been                                                     mostly subjective. 

By using the consensus grading approach (3 experts independently review the coin) using published, objective criteria, the early grading services were able to establish a reputation for reliability and objectivity in grading that was up to this time unknown.

Coin grading services are a relatively new phenomenon, having started in the 1980s as a response to the need for buyers and sellers to agree on common measures of a coin’s value. In an effort to bring more confidence to investors in rare coins, official grading was created. Grading services certify the authenticity and rate the quality of individual coins. Today most grading companies will seal coins in a labelled, air-tight plastic holder, ensuring the coin is protected from deterioration. This process is known as coin slabbing.

The best way to start investing in rare coins

Investment Opportunities

Investment into rare coins can start as a hobby and become a very smart way of creating an investment. When investing in rare coins, it can provide a significant medium to long-term benefit. The value of a coin is related to the difficulty to obtain a coin and the demand is generated for that specific coin. Generally, the rarer the coin, the greater the value. The world’s rarest coin is the South African “Single 9” that was minted in 1899.

Nelson Mandela coins are a welcome addition to any coin enthusiast’s collection. All Nelson Mandela coins were produced by the South African Mint.
For a Nelson Mandela Coin to have value, the following requirements are needed:
1. Coin must be uncirculated, Mint State or Proof (Untouched)
2. Graded by International grading companies (Only NGC or PCGS)
3. Certificate of Purchase with the name of the purchaser.

These are the different options when purchasing PROOF Nelson Mandela Coins. Be aware that Proof coins are different from Mint State Coins.

Warm Autumn Investments’ aim is to help you grow your rare coin. Remember, as per the date of this blog, no Capital Gains Tax or other taxes are payable on resale of Mandela coins, as well as No Estate duties are payable.

If you have a specific interest in making a large investment in the Commemorative 90th Birthday Nelson Mandela R5 coins, contact us by following the link on our webpage.

We are excited to announce that World Coin News confirmed that the rare R5 Nelson Mandela coins are the fastest appreciating rare coins in the world!

Investors’ Tip

Warm Autumn Investments, like any other organisation, cannot guarantee a floating investment. A floating investment is one that moves up and down in accordance with the general conditions of the market. Like rare coins, shares, property etc.

 We advise all investor in this regard to use common sense.

How long should I invest for?

Investment Opportunities

As with most good investments, rare coin investors should be investing for the medium to long term. This means that rare coin investments should be held between 3 – 5 years. Almost any good investment throughout the world today takes some time to build growth momentum. One should take the same investment attitude with the opportunity Warm Autumn Investments presents through its investment opportunity in the Commemorative 90th Birthday Nelson Mandela R5. A rare coin will always increase in value over the long term. It stands to reason that a rare coin will become rarer with the passage of time; all the more so if it is made even more unique through being a commemorative coin, in memory of a global legend.

There are times when the market moves at a fast pace and profit opportunities present themselves in less than a year, but this is not the norm.

The greatest profits made in investments around the world are generally done over the long term. To put it simply, if you find a really great investment, stick with it as long as the overall trend is upward. It will pay you to hold onto the investment. Every single investment in the world follows a path that includes peaks and valleys. In other words, there will be times when an investment’s value increases and there are times when it may lose value.

What does this all mean for serious investors?

Investment Opportunities

If you’re looking for a sound investment opportunity, Warm Autumn Investments has the opportunity for you. Rare coins present an intriguing alternative investment opportunity for investors interested in adding to their investment portfolio. Rare coins investment offers investors the opportunity for appealing returns, attracting many investors to the rare coin market.

Because the rare coins market is limited to supply, the increase of investors within this market will lead to a rise in price over the long term – serving for a good return on your investment.

Here are a few reasons why you should consider investing in rare South African coins:

  • The value of rare South African coins is often underestimated. Vintage coins made from pure metals are especially valuable, and a very good investment when considering investing in rare South African coins.
  • By taking the investment opportunity that rare coins have to offer, you will be growing your tangible assets.
  • The value of many rare South African coins exceeds their melt value (as the precious metal content is very small) and can be influenced by factors such as the age, scarcity, quality, preservation, supply and demand, historical significance and official grading of the coins.
  • As a growing option for alternative investments, rare South African coins benefit from low correlation with other investments, sometimes offering more liquidity than other investments e.g. real estate.
  • Most rare coins offer an attractive long-term (50+ years) return on investment, but can also present satisfying short-term returns.

Who was the legend?

History

On 10 May 1994, he was inaugurated as South Africa’s first democratically elected President. On his 80th birthday in 1998 he married Graça Machel, his third wife.

True to his promise, Mandela stepped down in 1999 after one term as President. He continued to work with the Nelson Mandela Children’s Fund he set up in 1995 and established the Nelson Mandela Foundation and The Mandela Rhodes Foundation.

In April 2007 his grandson, Mandla Mandela, was installed as head of the Mvezo Traditional Council at a ceremony at the Mvezo Great Place.

Nelson Mandela never wavered in his devotion to democracy, equality and learning. Despite terrible provocation, he never answered racism with racism. His life is an inspiration to all who are oppressed and deprived, and to all who are opposed to oppression and deprivation.

He died at his home in Johannesburg on 5 December 2013.

Reference

Nelson Mandela’s father died in 1930 when Mandela was 12 and his mother died in 1968 when he was in prison. While the autobiography Long Walk to Freedom says his father died when he was nine, historical evidence shows it must have been later, most likely 1930. In fact, the original Long Walk to Freedom manuscript (written on Robben Island) states the year as 1930, when he was 12.

Happy Birthday Madiba!

Events

The Nelson Mandela 90th Birthday Tribute was held in Hyde Park, London on 27 June 2008 to commemorate Nelson Mandela‘s ninetieth birthday (18 July). The concert formed part of the 46664 concert series to promote awareness of the HIV/AIDS pandemic and came twenty years after the 1988 Nelson Mandela 70th Birthday Tribute Concert at Wembley, held while Mandela was still in prison.

The three-and-a-half-hour concert was attended by 46,664 people. General admission tickets were available for £65. It was broadcast on the internet and Virgin Radio with highlights on ITV1. The hosts were Will Smith and his wife Jada, and June Sarpong, with other celebrities including Quincy JonesPeter GabrielStephen FryLewis Hamilton and Geri Halliwell introducing artists.

Mandela came onstage himself during the concert, where he made a short speech – to great applause.

In honour of his 90th birthday, Nelson Mandela mints the first South African coin featuring his portrait.