Advantages of Investing in Rare Coins
Throughout history, many rare coin collections have produced substantial long-term profits for their owners. This is particularly true for coin collectors of this century. For instance, Harold Bareford reportedly purchased a collection of U.S. gold coins for $13,832 in the early 1950's that was resold at auction in 1978 for $1.2 million. A more substantial collector, Louis Eliasberg, built a collection that cost approximately $300,000. In 1982, it brought $12.4 million at auction.
This rare coin investment performance has been well documented by sources as diverse as The Wall Street Journal, Consumer Reports and a host of industry periodicals and guide sheets. These reports have proven that carefully selected portfolios of rare coins have had a high rate of long-term appreciation.
Of course, past performance is no guarantee of future results, and investments in rare coins do involve risk. While the market performance of different coins varies substantially and no representation can be made that an individual investor's portfolio will enjoy results similar to those that have been documented in the various independent reports and surveys, those reports and surveys illustrate the impressive returns that carefully selected rare U.S. coins can produce.
Rare U.S. gold coins are an ideal investment for the prudent investor. Many financial advisers recommend that investors place 10% to 20% of their discretionary funds in tangible assets to maintain a properly diversified investment portfolio. Rare U.S. coins have proven to be an excellent hedge against the effects of inflation. Although renowned for their performance in periods of high inflation, rare U.S. coins have generated strong long-term price gains in virtually every period of economic growth over the past thirty years. They can also be very useful in reducing the overall volatility of an investment portfolio because, on average, they tend to move in the opposite direction of paper investment vehicles. Thus, rare U.S. coins can provide investors with security and peace of mind.
With the advent of the independent coin grading services, Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC), rare U.S. coins have become the most liquid collectibles of all.
On a typical trading day, thousands of certified rare U.S. coins are bought and sold--sight-unseen--on an electronic numismatic exchange. At any given time, thousands of coin dealers nationwide can provide buy or sell quotes for virtually any rare U.S. coin.
This degree of liquidity is possible because of independent grading by NGC and PCGS. No other collectible can offer such outstanding liquidity.
In addition, there are other liquidation options such as selling directly to a dealer and public auctions. Blanchard and Company, Inc. can facilitate any auction for rare coins at favorable rates.
Rare coins are one of the few remaining investments that can be accumulated privately. Because coins are highly liquid and easily transportable - and because an investor can take physical possession of his holdings - coins are attractive to investors who do not care to let the rest of the world know what they own.
Unlike paper investments, rare U.S. coins have real tangible value that you can feel each time you hold one in your hand. Therefore, they offer two ways to build wealth. Carefully selected coins truly offer the best of bullion and numismatics in one investment. They contain the intrinsic security of bullion and can also offer profit potential regardless of the performance of precious metal spot prices. Still, precious metal content is only a relatively small factor in determining the value of many rare U.S. coins whose value is almost solely based on condition, demand and rarity.
Premium quality rare coins are still affordable to the private investor. Despite their record of consistent price gains and the million dollar collections often sold at auctions, rare coin portfolios with outstanding track records and promising futures are available in a wide range of investment levels.
Compared to other collectibles such as Old Masters paintings and investments such as real estate, rare U.S. coins are very affordable.
Rare U.S. coins are a part of our history--direct links to America's rich heritage--and as timeless and valuable as history itself. For two centuries, U.S. coins have been symbols of American stability, as well as reflections of national pride. Throughout our nation's history, coins have spotlighted our national heroes, paid tribute to our great achievements and commemorated significant events. These truly historic works of art honor past sacrifices made in the name of freedom. Rare U.S. coins acquaint investors with historical figures and events, no matter how far removed by time. The satisfaction of actually owning a piece of history from a bygone era makes investing in rare U.S. coins truly unique. Each coin has traveled a different path through history, and as a result, each is a unique embodiment of the hopes and dreams of our founding fathers.