There are a lot of collectors and investors who concentrate on coins that are popular and rare. Especially those that have historic significance. These coins prove to be great investments. There are so many reasons why you should buy rare coins. Here is a list of the most fundamental ones.
Devote ten to twenty percent of your investment portfolio to physical assets. This is a common recommendation from investment professionals. This will maintain diversification. It will also reduce the general risk and create a hedge against inflation. Rare coin investing should be one of the base elements of any portfolio. Along with owning hard assets.
There is a huge collector base of rare coins. This creates a steady and consistent demand for the coin market. A collector or investor takes physical possession of the coins. So there are no destabilizing forces.
Coins are not always taxed. It can only happen when profits are actually realized. There is no taxation on undistributed profits. No Federal income tax liability on like-kind exchanges also exist. You should keep these key considerations in mind.
Rare coins have generated strong long-term increases in value. This is well-documented. Rare coins get rarer. It gets more valuable. The rare coin market offers excellent growth potential.
Professionals estimate that only about 2% of all the rare coins in the United States still exist. This keeps on reducing because of collectors or investors. They buy more, hold them longer, and take them off the market. The number of collectors and investors keeps on rising. But the number of rare coins do not. Prices will continue to rise to meet the increased demand.
Rare coins have commemorated heroes. As well as great achievements and significant events throughout history. A collector or investor is not only buying a piece of art. He or she is also buying a piece of history.
Price gains are consistent over the years. But these coins are still affordable. Rare, popular, and rare coins with historic significance.
Rare coins investment is management-free. It does not need daily buy/sell decisions. Not even monthly statements to decipher. You do not have to think about interest rates. You could ignore the national debt and credit crises. Or even other economic issues.
The value of most rare coins are usually based on condition. As well as demand and rarity. Rare coins also have the security and natural value of bullion. The government will never bail out gold.
You do not have to report to any federal, state, or local government agencies if you buy or sell coins. It is often considered by most a true private storage of wealth.