The rare coin outlook for the upcoming future is often dependent on trends that run from one to five years. Some trends can actually be very long-term of upwards to 40 years or longer. This is often a result of the different reasons for investing in certified rare coins. The rare coin outlook is usually formulated on the commonality of gold bullion performance.
Many investors use the advantage of investing in rare gold coins to diversify a portfolio over the long term. This is usually because rare gold coins have a tendency to retain their worth and can even increase in value during economic downturns or inflation. Collecting rare coins serves as unique way to balance portfolio losses during uncertain times.
Rare Coins Raise in Value More Than Fall
There are specific times when investing in rare coins has had its major ups and downs. From the 1970s to the 1980s, there was a dramatic rise in the price of rare coin investments that fell somewhat in the two years that followed. However, over the next decade, investments both rose and fell, finally peaking at the end of 1989. Since then, there has been huge rises in the investment prices of many rare coins with only a few downward fluctuations in the short term.
Overall, in the last 40 years, there were 27 years of significant rise. The standard index is based on an investment of $1000 worth of rare coinage, purchased in 1970. Today, that investment would be worth somewhere around $35,000 in today’s market. As an example, the PCGS Morgan along with the Peace Dollar Index indicates that a $1000 investment in 1970 stands at $15,000 today, which is still a significant profit.
The Rare Coin Outlook
All indicators from Numismatic News shows that there is typically a 50% weakening after a significant rise, although this is usually due to profit taking. Once all those profits have been taken, the price usually quickly rebounds. Many analysts believe that there will be a significant drop in the gold spot price, and quite possibly in silver in the coming years. However, there is no apparent price drop in rare collectible coins.
Some indicators suggest that there will be a fivefold increase in the price of rare coins, which will not happen in gold bullion. This means that should gold finally reach its $2000 mark, the price of rare coins could go significantly higher.
Lately, there has been a huge demand for historical coins. These rare coins are becoming exceedingly difficult to find. Whether investors are choosing to purchase these coins to increase their personal wealth or diversify their portfolio, they are seen as a high demand commodity and worthy of any strategy when obtaining the coins. The only downside is that these coins often cannot be purchased in large quantities, serving to be a better hobby strategy than one built for maximizing a retirement account.
For any investor interested in diversifying a portfolio with rare coins, the upcoming rare coin outlook looks promising. It works well in any investment strategy especially those that seek to find physical hard assets to hold.