Investors who deal with rare coins are always keeping tabs on factors that can affect the demand for their assets. The rare coin outlook entering 2014 is one that anticipates continued gains in prices. There are a couple of reasons for this expected increase.
The biggest reason is the economic uncertainty looming over Europe. European Union member nations are struggling to rein in debt while implementing crushing austerity programs on their populations. Greece has been at major odds over EU demands that are being met with hostile opposition among Greek citizens who have been adversely affected. Other nations are also struggling to contain the damage. Even Iceland appears to be coming back into the danger zone.
Outlook on Stocks
With the disappointing announcements by Cisco and Walmart, some economists have renewed fears that the economic contagion is spreading back across the Atlantic. They believe that the record highs reached by current stock indexes are not supported by the actual value of the stocks making up those components. They think the stocks are overheated. There is even greater consensus that stock markets are due for a correction that is sizable to draw a lot of liquidity out of the markets. In anticipation of this correction, many institutional investors have already taken profits and are moving into cash.
Outlook on Rare Coins
While a loss of liquidity is bad for stock markets, it is good for other investments. This is one of the driving forces behind an improved rare coin outlook as we move into 2014. Investors who tend to get bored with cash will start to look for other places to move their money. For independent investors, it represents an opportunity to invest in rare coins. The rare coin outlook for independent investors is excellent. This group of investors represents the class of buyer who has the time to dedicate to researching the guidelines for investing in rare coins. Additionally, they have the cash ready to invest.
Many of the larger coin dealers have experienced an increase in interest and orders from investors who are looking to trade their devaluing currency for hard assets that have a chance to increase in value over the long-term. They really want to find something to hold onto for a while, since the rest of their portfolio is so frequently traded. Rare coins can add that stability.
The rare coin outlook for 2014 is one that anticipates a steady push of new buyers into the trade. Additionally, many analysts expect that existing dealers will stock up now in anticipation of a future stock market correction. They want to get some exposure to the rare coin industry, and prefer to buy into it now before the prices rise due to an influx of new investors.
Getting started with a rare coin collection is easy. Mastering the collection of rare coins is another issue. It does take some getting used to, since the face value of the rarest coin says almost nothing about its value. Even its precious metal composition can be trumped by the novelty that rare status brings. Still, it helps to know that a rare coin does have actual value based on precious metals, which tend to increase their prices further.
If you are expecting the rare coin outlook to remain flat, now could still be an opportunity to get started with a few purchases. If you are like most analysts who anticipate a rise in rare coin values in 2014, you might want to lock in today at a lower price.
There is no guarantee that values will rise. So far though, much of the rare coin outlook for 2014 is based inversely on the performance of stocks, and the stock outlook is not so good for 2014.