Many investors are seeking ways to invest that are not directly tied to the ups and downs of the economy, the way stocks and bonds are. Some are buying rare coins as an alternative way to build wealth. Many of these investors actively invest in stocks, yet have learned diversity is the true key to building riches. Paper investments are not known for holding their value which is why many financers are turning to tangible investments, like bullion and rare coins.
Blanchard says that investors should prepare their portfolios for a resurgence in rare coin investing. Blanchard thinks we are on the verge of an economic recovery that will be led by China and India, along with other emerging fast growing markets. This recovery will be a boon to inflation that is currently being fueled by the FED’s stimulus practices. Since rare coins generally rise in value when they are held, this investment can become an important part of your portfolio as the dollar declines and inflation increases, along with the eventual stock market correction.
Kaginsadvisors.com states there are distinct advantages to investing in rare coins, such as low risk and a high yield. There are other benefits too, and include privacy, tax benefits, diversity, easy storage, a hedge against high inflation, is a liquid asset, not government regulated, and coin collections can be transferred to others hassle free.
Rare coin collecting or coin buying transactions are private. Only you have knowledge how much, or little you have invested into rare coins. Some investments leave a paper trail; this is not the case with rare coins. In addition, rare coins give financial portfolios needed diversity. Simply investing in paper stocks and hoping for the best is not a prudent investing technique.
Coins are easy to store and move and each rare coin is encased in slabs which protects the coins. In addition, there are no duty requirements if you want to take your collection outside of the United States. This is not the case with some other investment types. Rare coins are truly an international investment.
The FED has postponed the coming onslaught of inflation by keeping interest rates low while they stimulate the economy. There will come a time when interest rates must rise, and since the economy is flooded with dollars higher inflation levels are expected. Since rare coins contain precious metals they do offer a hedge against this problem. Moreover, rare coin appreciation has risen higher than current inflation levels and this is likely to continue.
Emergencies in life happen and there are times when fast cash is needed to avert a personal financial crisis. It can take days to sell a stock or bond and be compensated. However, rare coins are in high demand and can easily be turned into fast cash, typically within 24 to 48 hours. Another key advantage to investing in rare coins is the market is free from government regulation and interference. Real estate has titles, and bullion and diamond markets can be artificially manipulated. Rare coin values are determined by rarity, grade and market demand, pure and simple. If the coin is rare, in good physical shape and the demand is high enough profits are reaped. Indeed, rare coin collecting is the definitive free market way to invest.
Finally, rare coins might just be the ultimate way to invest. The market is free of government regulation, is private, and rare coins appreciate in value the longer they are held. Moreover, they are highly liquid and can easily be stored and internationally transported. Since rare coins hold precious metal content they also offer a hedge against inflation.