A lot of attention has been paid to the physical gold market of late, but little is being said about certified rare coins. Posted by James Randolph on May 23, 2011
It is hard to beat a sound investment in certified rare coins.
May 23, 2011 – A lot of attention has been paid to the physical gold market of late, but little is being said about certified rare coins. While mainstream pundits are reluctantly beginning to concede the wisdom of gold investment, few are willing to take the next logical step and recommend collectibles. Yet in the midst of unprecedented global uncertainty and minute investor participation, certified gold coins present exceptional investment opportunity.
The argument, of course, is the time-worn complaint about the higher premiums exacted when buying certified rare coins. But consider the unique nature of all collectibles, for which I’ll use buttons as an example. Yes buttons.
My great aunt was a lifelong button collector and by the time of her death she had amassed one of the largest collections in America that was worth a small fortune. Button collecting had not gained much in popularity over the years, but neither had it diminished. At a minimum each collectible button retained its intrinsic value and therefore the price rose to keep pace with inflation. More often, however, age and attrition combined to drive the price even higher.
For the truly avid collector, such as my great aunt, the gains (if that were her purpose, which of course it was not) can be astronomical. She would sort through huge jars of buttons she bought for a pittance at a rummage sale, often finding some rare gem worth several hundred times what she had paid.
While collecting certified rare coins has the same potential, few investors have the inclination or the time to pursue it. But the drivers of the so-called rarity premium are almost entirely on a continual upside. Growth in interest steadily expands with the population, diminishing the finite supply of coins. Growing investor interest, fueled by fears of gold confiscation, drives up demand even further. And because collectors are distributed throughout every nation around the world, only a global calamity could disrupt the trend.
The only thing holding investors back from the extremely lucrative potential of collectibles in general is that to be truly successful requires a level of expertise that very few possess and that takes years to acquire. But that is not the case with PCGS certified coins. PCGS is an unbiased third party rating firm that puts the expertise of world renowned numismatists at the disposal of the individual investor, assuring the authenticity and quality of every coin purchased.
Someday, to the dismay of “pure” collectors, the investment community will catch on to the double growth potential of collectible gold coins, and in time they will introduce a volatility that is virtually nonexistent today. For now, however, it is hard to beat a sound investment in certified rare coins.
Senior Staff Writer – Certified Gold Exchange