For some of you reading this, you may have already heard from others about how rare coins are quite a stable type of investment. It’s a popular opinion for those who’ve started investing in rare coins – one which should give more than just a grain of truth to it. Before reading this, you may have already done your research about investing in rare coins, and while there are avid supporters of this type of investment, you may have also encountered mixed responses from others.
Nevertheless, this isn’t to say that investing in rare coins brings a one-way guaranteed form of investment. Fluctuations in their value can still happen. But, there’s no denying its advantageous stability. Rare coins aren’t reflective of the economy compared with bonds and stocks. It is only the beginning of the many advantages that investing in rare coins can bring.
If you need more convincing about how investing in rare coins is, in fact, beneficial, you’ve come to the right place. Here are nine reasons why you should do so, whether you’re buying coins online or physically:
- It Offers A Good Way To Diversify Your Assets
Investors who have been in the industry for so long now would tell you how important it is to diversify your asset portfolio. No matter how convincingly positive a particular type of investment is, they’re not perfect. So it’s advisable to diversify to give your investments a hedge against inflation and other problems and uncertainties in the economy.
Generally, investment professionals recommend having at least 20% of an individual’s asset portfolio solely dedicated to tangible assets. One of those assets is rare coins. This type of asset should form a foundational element of your asset portfolio.
- It Brings In Wealth Preservation
Owning rare coins is one of the tried-and-tested modes of wealth preservation. The reason behind this goes back to the simple rule of supply and demand. Here’s an illustration.
While quite scarce, there has always been a stable supply of rare coins. Coin mints of every country have always kept and produced a record of rare coins produced. With that, the demand has also been consistently high. Those who have started collecting rare coins always want a better collection than their competitors.
It’s because of that fact that an anticipated increase in non-collector global demand is present. Rare coins, for instance, meet the perfect asymmetry of low supply and high demand, thereby creating a positive outlook for further price appreciation.
Apart from this rule on supply and demand, wealthy families are the most aggressive in first realizing the power of investing in or collecting rare coins. For those wealthy families, the holding power is very strong. There’s very little to no need to liquidate or sell the rare coins for less than the amount they paid for them. It means you can successfully preserve your hard-earned capital for that higher ability to reach and realize the profit level you desire to have.
- Its Value Is Determined By So Many Different Factors
Third on this list is how the value of rare coins is influenced and shaped by so many different factors. A novice or new investor in rare coins should know that how it’s shaped by many different factors contributes significantly to the value of rare coins.
With that said, some of those factors include:
- Supply and dealer inventories;
- Collector demand;
- Cyclical timing; and
Those are only a few of the many, given the mix of interior and external factors that could influence its value. The point is that this varied mix of factors helps rare coins have strength, as their value isn’t solely dependent on only a very narrow mix of factors.
Likewise, having so many factors determine its value also means that the value of rare coins is consistently on the rise. There’s no denying how appreciation is one of the most significant advantages of investing in rare coins.
Therefore, the coin market is one of the less risky modes of investment for those interested. The consistent appreciation also gives rare coins that strong opportunity to minimize the risks brought on by outside factors in the supply-and-demand relationship.
- It’s Rare
As its name implies, rare coins are rare. This statement is another one that only proves the strength of rare coins. Different mints do come up with rare coins quite frequently. The supply is stable, but when the demand is high, it may not be enough to keep up with that demand. This fact keeps and preserves the rarity of those rare coins.
The fact of being able to keep and hold something rare is already an advantage in itself. You know you have something with you that not a lot of people do. If you decide to sell it one day, you can command a higher possible price for it.
- It Brings In Long-Term Portfolio Growth
The growth that rare coins bring isn’t just something within the short term. It’s also capable of bringing in long-term portfolio growth. This fact begins with rare coins’ ability to preserve wealth. Then, moving forward, rare coins have indisputable stability and consistent price appreciation. With this, the potential for long-term portfolio growth is stronger.
The long-term portfolio growth is an advantage to relish in, as it can contribute significantly to financial stability. This outlook should be more towards the distant future, rather than too near, for you to enjoy the maximum of the promised benefits of rare coins.
For instance, when you decide to sell your rare coins, it’s not just its growth in value that gives you a better opportunity to demand a higher price. It’s also the fact of its availability. Many buyers will be willing to pay for the price you put in because they like to grab the chance of its availability.
- It’s A Stable Investment Option
Rare coins form that type of investment with a very slim history of dramatic and unforeseen price shifts. Even many years back, rare coins have already been touted as a stable investment form. This fact has remained even to this day.
As a result, the rare coin market is steadily high in demand. Because investors take physical possession of their coins, there are no other destabilizing forces in other markets that affect the viability of rare coin investing.
- It Enables You To Hold A Piece Of History
Investing in rare coins means you have the physical coins with you. Those rare coins can commemorate so many different things and events. Essentially, when you have a collection of rare coins with you, what you have is a piece of history and a piece of art.
It’s not just the value of the rare coins that you get to enjoy. But, it’s a tangible piece, and it also becomes a good conversation starter at home. When you have guests, who are also interested in learning more about the coins you have on display, those coins can become a very good conversation starter.
Your rare coins are pieces of history that only you (and perhaps a few others) have. That, in itself, is a very special thought, especially if you’re an avid art or history collector.
- It’s Portable, And Very Private
This next advantage applies the most to individuals keen on investing in rare coins but also travel from one place to another quite frequently. One of the challenges of having so many valuable assets in bigger sizes is moving them. There’s a lot more to ensure that antique furniture, paintings, and other tangible investment assets need.
With rare coins, you have tiny pieces with you, like jewelry. This fact makes for more privacy and portability, particularly when you have to move your assets with you.
Moreover, the rare coin market is very self-regulated. A high premium is placed on privacy, which means that transactions are very private. The process of buying, investing in, and collecting rare coins is, therefore, very private and convenient.
- It’s Affordable
Lastly, rare coins are one of the most affordable types of investments, particularly for newbies, the ones who don’t have a lot to spend on investments yet. You can always start small, one coin at a time. This fact makes rare coins a very attractive opportunity even for the masses. You don’t have to feel constrained from being able to invest in rare coins simply because your ability to spend isn’t yet that high.
Nowadays, there seems to be an escalating demand for alternative investments. If there’s anything the past years have shown, it’s that one can never be too complacent. You never know what could happen to the market economy in weeks or months. There are many different forms of alternative investments you can opt for, one of the many being rare coins. While not yet a commonly-chosen type of investment, it’s certainly one that’s just as good and competitive as the other more favored choices. The list of benefits you’ve just read through should convince you why investing in rare coins is, in fact, a good choice.