What is the most viable form of investment in the current market? Real estate? Stocks? Hard assets? The answers are difficult to provide because there is just so much turmoil, but there is a “tried and true” method of protecting wealth during even the most problematic periods.
What is this method? It is the acquisition of rare coins as a hard asset, long or short-term vehicle, and as a safe harbor to protect wealth. While many would say that a straight investment in precious metals could fit the bill; that is not always the case.
Precious Metals and Rare Coins
While gold, silver, platinum, and palladium are indeed extremely prudent forms of investment because they are consistent “growers”, they don’t have the kinds of secondary value or built in insurances that rare coins do.
Let’s paint a portrait of a rare coins investment to show you what we mean:
An investor is worried about the amount of risk they have in their portfolio. With around 15% of their assets in gold coins, they are still very concerned that the various stocks, bonds, and other vehicles are going to cost them dearly. They decide to boost the percentage of precious metals to 25% and to use rare coins instead of plain bullion.
They do their research and pay a premium price for their coins. This makes some people laugh and tell them that they won’t see the same returns as those with the plain bullion coins.
Who made the right choice? Because the rare coins are not being made any longer, are desired by investors and collectors, and because they will tend to increase in value due to demands from all sides, the buyer of the rare coins finds that their portfolio increased in value at a much faster rate. The market price for precious metals may be competitive, but there are few things that could compare to something like a gold coin that is being actively sought after by thousands of collectors.
How to Begin
So, how does the novice coin buyer begin enhancing their assets and holdings? The very first step is to accept that a coin expert is a vital part of the process. Few novices are going to recognize a good coin investment from a dubious one, and few will even understand which coins have the greatest value. Thus, it is important to find a supplier that guarantees the qualities of the coins, and who can steer the buyer towards the best choices.
The next step is to identify objectives. While a guaranteed ROI is never possible with any type of investment, when a coin is rare, the demand for it can make its value very easy to determine. Choosing to sink capital into only a few coins with scarcity or rarity can often provide a very easily anticipated increase in portfolio value.
Speak with experts, get guarantees, and develop some plans before buying coins and you will certainly enjoy a tremendous amount of investing success.