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Ask the Expert
Damon Geller |
Certified coins, which are also referred to as numismatic or semi-numismatic coins, can be extremely profitable investment vehicles. Certified Coins can increase your opportunity for profit at the same time they can reduce volatility. Unlike the gold bullion markets that are designed for short term profit taking, the certified markets have offered long term steady growth and stability - with a decreased amount of short term volatility. The reason for this is simple: In certified coins, there are generally more buyers than sellers, so the market is generally more stable and can appreciate more consistently over time.
One of the BEST reasons to use certified coins as your long term investment vehicle is that Gold is currently trading close to Historic market Highs, and certified coins are well below their historic highs. Their upside profit potential is very large while their downside risk remains quite small as gold keeps challenging market highs.
A recent study, which was originally done for the Joint Committee on Taxation of the House and Senate, showed that U.S. rare coins were a better hedge than gold and produced better investment returns.
That study, updated through 2007, provides a comparison of the performance of gold and gold rare coins. Conducted by Raymond E. Lombra, Professor of Economics at Penn State, the study served as the investment basis for legislation that was passed by Congress and which provided for the inclusion of gold in Individual Retirement Accounts. The conclusions over the 28-year period covered by the Lombra Report were amazing:
- Rare coins were a better inflation hedge than gold.
- Rare coins were a better hedge than gold against falling prices for stocks and bonds.
- Rare coins produced significant profits even during periods when the price of gold was falling. For example, from 1988-1990, rare coins went up more than 100%; the price of gold fell from $500 to $360.
- The average annual return on rare coins was more than 200% greater than the return on gold.
- The return on rare coins in their best year was approximately 100% greater than the return on gold in its best year.
- The return on rare coins in their best three years was approximately 100% greater than the return on gold was in its best three years.
Privacy:
Rare coins are one of the few remaining investments that can be accumulated privately and confidentially . They are one of the lease visible forms of wealth. While financial banks and brokerages require the extensive disclosure of client information to government agencies, certified coins are absolutely free from this kind of scrutiny.
Wholesale Direct Metals is not required to issue any 1099B forms or file any other items when you buy or sell a pre-1933 certified coin or numismatic coin.
Diversification:
Rare U.S. coins can be an ideal vehicle 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.
Liquidity:
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 the Dealer Trading Network. At any given time, thousands of coin dealers nationwide can provide buy or sell quotes for virtually any rare U.S. coin. This network forms the backbone of the coin market.
This degree of liquidity is possible because of independent grading by NGC and PCGS. No other collectible can offer such outstanding liquidity.
Choose from Gold & Silver Numismatic Coins:
St. Gaudens Gold/Double Eagle
Liberty Head Gold/Liberty Eagle
Indian Head Gold
British Sovereign
Swiss 20 Franc
Peace Silver Dollar
Morgan Silver Dollar
Junk Silver Bags
Gold Proof Eagle
Silver Proof Eagle
Gold & Silver questions or pricing info?
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Damon Geller answers your serious investment concerns: How can I protect myself against the falling dollar? Will the skyrocketing national debt doom my investments? How can I protect my investments against stock volatility?
What’s the best way for me to diversify and protect my wealth? Is it too late to profit from the gold boom? Concerned about gold & silver? Get immediate answers: I’m worried that gold & silver are too risky of an investment I think I can find a better performing investment I don’t understand numismatic coin investing versus bullion |










