14 Reasons to Purchase Rare Coins

INVESTING YOUR MONEY . . . IN MONEY

Concentrate on popular‚ rare‚ historically significant quality coins as part of an overall investment plan in good times and bad…and history suggests that the rewards are great. There are numerous reasons why the demand for rare coins is growing among collectors and investors alike. Here are fourteen of the most fundamental:

FUNDAMENTAL REASON #1: DIVERSIFICATION

Investment professionals recommend ten to twenty percent (and sometimes higher) of an investment portfolio be devoted to tangible assets in order to maintain diversification‚ reduce overall risk and create a hedge against inflation. Rare coin investing‚ and owning hard assets‚ should be one of the foundational elements of any portfolio.

FUNDAMENTAL REASON #2: STABILITY

There is little history of dramatic sudden price shifts with truly rare and popular rare coins. This is partially due to the huge collector base…an estimated 35‚000‚000 and new ones entering the market all the time…who create a steady‚ consistent demand for the coin market. And‚ since a collector/investor takes physical possession of his or her coins‚ there are none of the destabilizing forces that exist in other markets.

FUNDAMENTAL REASON #3: RARITY

It is estimated that only 2% of all the rare U.S. coins ever minted still exist. This existing supply is consistently being reduced as collectors/investors buy more‚ hold them longer and take them off the market. By the year 2015‚ experts believe that there will be some 100‚000‚000 coin collectors/investors worldwide‚ or nearly three times the number that exist today. Since there will be no more new coins available for these new collectors/investors‚ prices should continue to rise to meet the increased demand—a basic supply/demand fundamental.

FUNDAMENTAL REASON #4: HISTORY

Since coins have commemorated heroes‚ great achievements and significant events throughout history‚ a collector/investor is essentially purchasing a piece of history AND a piece of art.

FUNDAMENTAL REASON #5: AFFORDABILITY

Despite consistent price gains over the years‚ rare‚ popular and historically significant rare coins are still affordable for the masses.

FUNDAMENTAL REASON #6: LIQUIDITY

Rare U.S. coins have become the most liquid of collectibles due to independent grading by the Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC). With over 35‚000‚000 buyers and sellers in the market and annual estimated sales of more than $5‚000‚000‚000‚ there are abundant opportunities to liquidate rare coins when the time comes.

[While rare coins can be liquidated relatively quickly‚ they are not meant to be speculative or short-term investments. Investors should view rare coins as a long-term investment (5 to 7 years or longer). Of course‚ the longer the investment is held‚ the better the investment is likely to perform.]

FUNDAMENTAL REASON #7: SECURITY

The value of most U.S. rare coins is almost solely based on condition‚ demand and rarity‚ yet rare coins also possess the security and intrinsic value of bullion. We will never see the government having to bail out gold.

FUNDAMENTAL REASON #8: OWNERSHIP

In 1933‚ with one exception‚ taxpayers were required to turn in all gold to the government when private ownership was banned. Coins struck before 1933 were the exception. The government still has the power to ban private ownership of bulk gold coins like the Krugerrand‚ American Eagle and similar types of gold bullion coins. But‚ by law‚ private ownership of rare U.S. coins struck before 1933 cannot be prohibited.

FUNDAMENTAL REASON #9: PRIVACY

There are no reporting requirements to any federal‚ state or local governmental agencies as a consequence of a purchase or sale of a rare coin. A true private storage of wealth!

FUNDAMENTAL REASON #10: PORTABILITY

A small box can hold a substantial value of rare coins‚ and since coins are in bearer form‚ they can be transferred quickly‚ easily and confidentially.

FUNDAMENTAL REASON #11: TAXES

Coins can only be taxed when profits are actually realized‚ and there is no taxation on undistributed profits. There is no Federal income tax liability on like-kind exchanges. These are key considerations in light of the ever-increasing taxes imposed on the American public.

FUNDAMENTAL REASON #12: PROFITABILITY

While past performance is no guarantee of future results‚ it is well documented that rare U.S. coins have generated strong long-term increases of value. Rare coins only get rarer and‚ consequently‚ more valuable. The U.S. rare coin market offers outstanding growth potential.

FUNDAMENTAL REASON #13: SIMPLICITY

Rare coins are essentially management-free investments that do not require daily buy/sell decisions or monthly statements to decipher. There is no need to think about interest rates‚ the national debt‚ credit crises or a myriad of other economic issues. The long term trend for rare coins has been‚ is currently and‚ when applying all fundamentals logically‚ will continue to be—up.

FUNDAMENTAL REASON #14: ECONOMICS

In uncertain economic times like the present‚ getting serious about investing in rare coins makes more sense than ever. As the United States and a new administration confront extremely troubling financial problems that will not be easily solved…such as the mountain of new debt‚ the continuing credit crisis and mortgage failures‚ a volatile geopolitical climate‚ a dollar in trouble‚ threat of inflation as the U.S. debt skyrockets to over $11 trillion‚ increased government spending and much more…rare coin ownership makes economic sense.

I encourage you to contact one of Finest Known’s account representatives toll-free at 1-888-900-9948 to initiate or enhance the rare coin portion of your investment portfolio. Among other services‚ Finest Known’s investment professionals can:

  • Assist you in planning your rare coin investment strategy or reviewing one that is already established;
  • Recommend the best coins for your investment goals and portfolio diversification;
  • Help you ensure that the rare coin portion of your portfolio is balanced; and
  • Update you on market news‚ what America’s top numismatists are recommending and new offerings.

Finest Known Rare Coins is a trusted leader in the rare coin collecting and precious metals investment world. We offer a unique, vast and impressive array of resources for investors and collectors alike. At Finest Known, you’ll find the finest rare coins available, an experienced and knowledgeable staff of professionals ready and willing to serve your needs, and a broad range of programs and products to fit most any budget. Finest Known will always make you an offer to buy your certified rare U.S. coins, even if you purchased them elsewhere.