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Gold Coins Create Outstanding Performance
Performance
Rare coins have produced exceptional long-term performance for their owners. This track record stems from the basic fundamental factors which drive the rare coin market. Nobody is minting any more rare coins. In fact, the last rare gold coin emerged from the mint in 1933. As a result, supplies of rare coins are constantly and inevitably diminishing as coins are taken off the market for inclusion in closely-held family collections and long-term portfolios. Demand, on the other hand, has been on an upward trajectory for many years. This simple set of circumstances explains why rare coins increase in value over the long haul.
Professional Coin Grading Service (PCGS), one of the world’s two largest coin grading and certification firms, which has been in business since 1986, maintains indices to track the performance of the rare coin market. In fact, According to PCGS, one of two premier coin grading companies in the world, mint state rare coins have outperformed bullion close to 4 to 1 since 1971.
Gold Privacy
Many Americans who value their privacy also acquire U.S. rare coins due to their status as a collectible that allows purchase and sale of them without 1099-B reporting to the IRS by the coin broker/dealer. In fact, no reporting forms are required during any part of the transaction. These transactions are confidential and virtually paperless.
In today’s litigation-happy atmosphere and instantaneous transmission of personal data of all sorts via the World Wide Web, it is comforting to know that rare coins afford their owners an unsurpassed level of true privacy with which to protect their wealth.
Gold Confiscation Protection
During the last gold confiscation in 1933 under Franklin D. Roosevelt, gold bullion was confiscated by the federal government but rare coins were not. As collectibles, rare gold coins do not fall within the provisions allowing confiscation and in fact are specifically exempted by language in the executive order (click here to read the executive order). Many experts believe that future confiscation of gold bullion is a likely possibility, and that rare or numismatic coins will be again excluded.
Gold Portfolio Diversification
Many financial experts advise that portfolios contain 10% to 20% in tangible assets to maintain effective diversification. Because rare coins do not typically move in the same direction as traditional paper assets, they can play a useful role in virtually every investment portfolio.
Successful diversification can only be achieved if a portfolio includes a combination of holdings that do not typically move in the same direction at the same time. Rare gold coins are not positively correlated over the long-term to paper assets, such as stocks, bonds and the US dollar. This makes them an effective diversifying element to include in your overall financial plan.
Liquidity of Gold Coins
PCGS- and NGC-certified coins are among the most liquid collectibles of any type in the entire world because they trade sight-unseen between dealers worldwide on a daily basis.
Coins of varying levels of scarcity trade electronically on an exchange that functions much like the NASDAQ. Moreover, literally thousands of coin dealers from coast to coast buy and sell coins each and every day, so there is a ready, physical, face-to-face market in place to provide owners of rare coins a means by which they can sell or trade their coins in every major city and town in America. In addition, hundreds of millions of dollars worth of coins and other numismatic items change hands year-round at numerous coin shows on a circuit that reaches just about every corner of our nation at some point during the course of the year.
Intrinsic Value of Gold Coins
Rare gold coins provide the added benefit of intrinsic value. While stock certificates and debentures have historically, from time to time, been rendered worthless, rare gold coins can never fall to zero because they will always be worth at least as much as the value of the gold that they contain.
Transportability of Gold Coins
Rare coins can be the perfect vehicle to concentrate a great deal of wealth into diminutive dimensions. With rare coins, you can readily put hundreds of thousands of dollars of value in a package smaller than the average paperback book! This feature of rare coins makes it possible for coin owners to move their wealth without unwanted attention. In this regard, rare coins compare very favorably to other collectible investments, from classic cars to sculptures and paintings, none of which is as portable as rare coins.
Affordability of Gold Coins
As compared to many categories of investments, such as real estate, as well as certain other collectibles, rare coins are generally within the financial wherewithal of most Americans. While there have been instances in which rare coins have sold for seven figures, attractive and promising collections and portfolios can still realistically be begun with less than five thousand dollars.
Beauty You Can See and History You Can Feel
Rare coins offer one last benefit that most other asset categories cannot match: collector value due to their artistic appeal and historical importance. This is important even for those coin owners who do not personally wish to become collectors simply because it is this collector value that attracts many buyers to take coins off the market to be held in collections with no intent to liquidate.
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