Why Rare Coins

Gold is the only financial asset that is not simultaneously someone else’s liability.

Coins have had an inherent appeal throughout history. Young and old, rich and poor, have all submitted to the allure of coins!

Collecting can start in childhood with the fun of sorting and filling coin books. For true collectors, the fascination continues into adulthood, and collections become passions. For asset portfolios, the amazing opportunities for huge returns cannot be ignored.

While the glitter of gold and other precious metals is undeniable, coins offer so much more! Coin collectors have long been aware of the artistic beauty and fascinating history of coins. Rare coins add a rich and complex set of factors the make them popular with collectors and investors alike. Like the finest art, wines and antiques, rare coins have become popular and exciting acquisitions.

Knowledgeable buyers have found that not only can rare coins be a great way to diversify a portfolio, hedge against inflation and increase returns, they also provide liquidity unmatched by most other collectibles. Given the many favorable qualities of rare coins combined with limited supply and growing demand, it becomes clear that a carefully selected holding of rare coins has tremendous potential to multiply in value over time.

Rare U.S. coins provide a unique set of advantages giving them attractive ownership options. And as the coin industry has evolved, it has become easier to buy with confidence. Carefully selected rare U.S. coins offer savvy tangible hard assets you can hold in your hands, have historical links to the past, and have maintained proven long-term returns as part of a well-diversified portfolio.

When looking at coins, it is important to note that coins worthy of your consideration are not only uncommon, but are of high quality and very desirable to collectors. It takes research and education to find the right coins, and that is where ProCoin, LLC can help! This being said, let’s look at what rare coins have to offer as a purchase opportunity.

Why Own Rare Coins?

Ownership of rare coins provides a variety of highly attractive benefits that make it a top choice with experienced asset managers.

Here are eight primary reasons to own rare coins:

  1. Performance
  2. Rarity and Demand
  3. Diversification
  4. Intrinsic Value
  5. Affordability
  6. Liquidity
  7. Privacy
  8. Portability

1. Performance
Over time, rare coins have maintained or significantly increased in value through a wide range of economic conditions. Proven as a hedge against inflation, rare U.S. coins have consistently generated strong long-term rates of return. Furthermore, many rare coin collections have produced substantial profits for their owners throughout history. For example, Louis Eliasberg put together a U.S. gold coin collection at a cost of $300,000. When sold at auction in 1982, it realized the amazing price of $12.4 million!

2. Rarity and Demand
It is easy to see that coins, especially high-quality rare coins, are in limited supply. Only a certain number of any one coin is minted, and the better issues experience an estimated loss (due to attrition, hoarding, etc.) of 98%, leaving only 2% for purchase. This leads to high demands and increased values.

3. Diversification
It is important to balance your portfolio with a variety of asset types. Many financial experts recommend that qualified portfolios have between 10% and 20% invested in tangible assets. Premium quality rare coins have proven to reduce overall portfolio volatility while enhancing returns and realizing substantial long-term gains.

4. Intrinsic Value
By its very nature, rare coins are valuable! On top of their rarity, coins have an underlying metal value. While prices may reflect some changes, rare coins’ have proven their ability to maintain their value and preserve wealth. Unlike paper investments, coins will never be worthless!

5. Affordability
Coins are as diverse and distinctive as owners themselves. High-quality rare U.S. coins are available in every price range.

6. Liquidity
Consider these factors that have made coins more easy to trade:

  • a worldwide network of coin dealers
  • coin shows and auctions held throughout the year
  • grading services (such as NGC and PCGS) that guarantee quality and authenticity
  • Also keep in mind that since the best coins are highly collectible, they are desirable in a larger market and, thus, more easily sold.

7. Privacy
Neither documentation nor identification is required for the purchase or sale of rare coins.

8. Portability
Unlike bars of bullion, coins fit in your pocket. Enough said!