In the wide spectrum of different Investment strategies available in the market today there is one standout that combines pure collecting /historical interest with analytical and rational decision making. That vehicle is Rare United States Numismatics (Coins). For hundreds of years there have been a small amount of dedicated collectors that have profited and enjoyed the market for Rare Coins, that small cadre of white gloved, bespeckled numismatists have given way to the high profile, computer literate collector/investor of today. Instead of an in-depth historical review of the Rare Coin business I think a touch on the major points of the market are more in order. Several things have driven the Rare Coin Market into a global behemoth that gets front page news when the big rarities sell. Several factors are working in favor of rare coins, they are:
- Performance: Rare Coins have outperformed and are more profitable than nearly any other Investment with a proven track record of outstanding achievement since 1911. The recent surge in Gold Bullion prices has only served to enhance that by energizing the base of buyers for coins; semi-numismatic to fully Rare Numismatic pieces.
- Supply: Supply is fixed. Availability is limited to the original issue minus attrition due to the ravages of time, economics and political machinations leading to recalls or meltdowns. In other words, “they’re not making them anymore”.
- Demand: Related to performance, the demand for Rare Coins is at an all time high, with huge room for growth. This has been a steadily developing market, enhanced by liquidity and certification of the product.
- Liquidity: As mentioned above, this is related to both demand, supply and performance. There are thousand of coin dealers and hundred of auctions that are willing to buy coins. One look at the phenomenal growth in e-bay, coin shows and auctions prove that.
- Storage: Coins are easy and inexpensive to store and transport, they do not require special treatment. The other side of this point is…
- Privacy: Coins are a private asset that is not over- regulated. Numismatic purchases are confidential. There are no buy/sell reporting requirements as there are in bullion transactions or other investments.
- Tax advantage: Rare Coin profits are not taxed yearly as other investments are. Tax’s are due only after you collect your profits.
- Safety: Being a top rated investment, Rare Coins are a great place to invest. Though this offers you no protection from the immutable laws of economics it does give you a great opportunity to take part in a hard money investment with proven rewards.
With the booming market and access to more information that any one person could absorb there are a few decisions an interested investor needs to make. Do I feel comfortable in this arena and, more importantly, do the people I am dealing with have knowledge and the right attitude to service me. Keep in mind; this is a very knowledge intensive business. Find the right dealers and develop a relationship. Your success depends on it.
David W. Hunt
Inland Empire Numismatics