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.
- 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.
- 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.
- 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,
- 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.
- 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.
- 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.
- 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.