In today’s market, a well diversified portfolio has to include a variety of investments to protect your assets and to insure growth: Jim Cramer of “Mad Money” advocates 5 areas into which your portfolio should be invested that includes foreign assets, high yield stocks, secular growth, speculative areas, and of course gold. In his message, Cramer mentions coins, but he doesn’t mention where you should be invested specifically and it would be easy to misinterpret his message to simply mean bullion, but that’s not true.
The highest profit margin in precious metals has been in rare numismatic pieces. While gold has done several hundred percent over the last decade, many rare coins have done even more than that. Simple bullion has the bonus of liquidity, but one of the few downsides is that even as rare as gold is, the US Mint, the Perth Mint, and many other institutions produce a large amount of gold product every year – product that may look beautiful, but currently isn’t worth much more than the spot price! If you understand the difference between bullion and numismatic pieces, you’re effectively opening your portfolio up to two markets: the collector market and the investor market.
The collector market is much like the antiques market with a major exception: with antiques, owning one pretty much guarantees a lock on an entire portion of the market. Owning a rare Monet painting or an original piece of sheet music by Bach and you’re probably the only one with that piece. With rare coins, you have that kind of control AND you can end up controlling sets of coins. Key dates of issue with low mintage can drive the demand on these coins by collectors who need that one last piece to complete a set. By purchasing these rare coins, you not only end up controlling the value of your investment but also the value of several other people’s, allowing you significantly more flexibility in choosing when to take a profit.
With the investor market, you have the ability to look at previous historical trends within the numismatic community to forecast potential profits to be had. Keep in mind, many of these coins are actually getting rarer due to the fact that they aren’t in production any longer and many of them get removed from the market annually due to accidental cleanings or improper handling – a fact that hurts the owner of that particular coin, but may increase the value of that series of coins for everyone else who owns one!
At Global Monetary Reserve, we believe that a well-rounded and well diversified portfolio not only includes bullion, but also numismatic coins. We’ve seen the profits our clients have reaped from the beautiful coins we’ve recommended and we’ve been happy to help customers take a profit when the time was right for them. Call us today at 866.358.0920 and ask to speak to your account representative about how adding in numismatic rarity can secure your profit potential.