In today’s turbulent economic environment, when every comment made by the US Federal Reserve is broken down by experts all around the world and has the potential to make or break the markets, many people are looking for places to invest their hard earned money that are not so dependent on whimsical fancies and perceived insights into the Federal Reserve’s thought processes. That is why now more than ever investors the world over are turning to investing in rare silver coins and rare gold coins as a way to both add value to and diversify their portfolios. This has occurred due to an increased interest in general precious metals trading that has been happening ever since the global Financial Crisis of 2008.
Last month, the US Federal Reserve announced that they would begin tapering their easing policies by reducing their monthly bond and mortgage backed security purchases from $85 billion to $75 billion starting this month. The quantitative easing policies were originally enacted to help attack the negative effects that the US national deficit and debt issues were having on the domestic economy. With this tapering policy in mind, many speculators believe that there will be an even larger increase in trading of commodities such as gold with a subsequent switch to investing in physical gold investments such as rare gold coins later on in the year.
Two of the things that have been responsible for the recent increase in the trade of gold commodities has been the historically low federal fund interest rate in the US and moderate gold prices around the globe. With the recent promotion of Janet Yellen to head of the US Federal Reserve, many Federal Reserve and economic experts believe that the US will likely see a slight to moderate rise in inflation. Traditionally, a rise in domestic inflation is followed by an increase in the spot price of gold. This is because gold is seen as inflation proof; as the dollar loses value during times of inflation, gold maintains its value and thus sees an increase in demand from investors. With Janet Yellen assuming the reigns of the US Federal Reserve, now is the time to invest in gold. One of the best and smartest ways to diversify and balance one’s investment portfolio through investing in gold commodities is to invest in rare gold coins.
There are a lot of different factors that go into the valuation of rare gold coins. Before one invests in rare gold coins, one must do a lot of research to make sure they are making the type of investment that they want to make. One of the most important things that a potential investor in rare gold coins should consider before making any significant purchase is the relative rarity of the coins that they are looking into buying. The rare gold coin exchange on low and medium grade rare coins generally retain their value. However, rare gold coins that are in rare mint condition have the ability to retrieve much higher prices than the average market price for their type of coins. They go beyond the tradition valuation based on the coin’s metal composition, weight, thickness, and diameter.
All national mints offer potential investors guidelines to all the different types of coins that have been produced throughout the history of the mint. It is a good idea for all investors that are new to the rare coin marketplace to bring any potential purchases to a professional numismatist, who will be able to accurately grade the coin’s rarity and offer up an estimation of the coin’s value. Even seasoned rare coin investors will bring their rare coins to professionals in order to get an updated valuation of their collections.