Current Advantages of Rare Coin Investments
Ability to Acquire Rare Coins during Period of Market Lows
The rare coin market at the present time is at a historical low. Recession (1990-1993), record unemployment,
massive losses in S&L scandals, the losses in the "tech-wreck" of 2000-2001, real estate speculation, low
interest rates and a lack of strong inflation all have affected the tangible asset market, which includes
rare coins. Some high quality rare coins can be purchased for 40-50% of their previous market highs. The
more common coins in some cases are selling at 20-25% of their previous highs. Other tangible areas have
experienced the same declines (classic automobiles, rare stamps, art) however, rare coins are the most
liquid and negotiable of all tangibles, with a longer, better documented, performance record. Coins will
not have to return to their previous highs to achieve stellar results.
Certified U.S. Rare Coins are the Easiest Tangibles to Verify
With the advent of certification by PCGS, the buyer now has the same ability as the professional dealer or
experienced collector to determine the exact condition, as well as the price, of his rare coin. Prior to 1986,
the purchaser had to place his full trust in the dealer as to the quality of the coin he was buying. The quality, of
course, determined the price. Today, the tamper
proof case contains the exact information on the coin contained within. The Certified Coin Dealer Newsletter is
the source for the weekly wholesale price. The procedure is as simple as looking up the price of a stock. Certified
coins guarantee the buyer that the coin is genuine and not altered or counterfeit. It is important to understand
that the wholesale price shown in the CCDN is the average "sight-unseen" price offered by dealers and does not
reflect any premiums for rarity or extraordinary quality.
Rare Coins Provide Tax Advantages
Since rare coins are strictly a growth vehicle and do not provide income. Taxes on the growth are deferred
until the coins are sold and capital gains are realized. Unlike raw land, which has a similar characteristic
of growth, no property taxes are required to be paid during the holding period.
Rare Coins are a Discreet and Private Transaction
Trading in rare coins is not specifically regulated by any agency of the government in the U.S. or in Canada.
No title or registration is required. Rare coins may be bought and sold with the privacy of a consumer purchase.
Rare Coins Provide Excellent Portfolio Diversification
Due to the ever-changing economic conditions, not one particular asset will fully serve the needs of a portfolio
objective. Diversification and proper asset allocation will provide a strategy to cope with various investment
climates. Coins have demonstrated strong performance in periods of high inflation, and due to the large collector
base, perform well during periods of economic recovery.