A Basic Guide to Coin Investing

Strategic investments are the best way to protect your savings from economic downfall.  During times of recession there are few better additions to a financial portfolio than gold, silver, or numismatic coins.  Coins are known for excelling in ways that paper money just cannot compete with.  Each kind of coin has its own benefits and approach and understanding the differences is the best way to decide which option is best for your individual needs.

1. Gold.  This precious yellow metal is one of the most common and trusted investment vehicles out there.  You would be hard-pressed to find a serious investor who didn’t have at least some gold in their portfolio.  Gold adds stability due to the fact that it is a tangible hard asset that will not lose value, and also acts as a hedge from inflation – especially during times of recession.  Gold is unique because it actually is currency at the same time as being a commodity.

Gold prices stem largely in part from speculation.  When citizens lose faith in fiat currency, they turn to gold for its reliability.  When the paper dollar becomes devalued, gold prices tend to surge.  This is not just a coincidence; even national central banks stockpile gold as a protective barrier from declining money.  Gold is a time-honored investment strategy that is proven to be effective in even the worst economic turmoil.

2. Silver.  Silver is much less expensive than gold, but many financial experts are waiting with bated breath to see what is in store for this white metal.  Having increased from a mere $5 per ounce to approximately $30 today, silver investors have already seen a return on their investments.  However, many investors are quite hopeful about silver’s promising future, and there is much talk about the enormous potential that silver currently offers.

One of the main factors driving silver prices skyward is its demand in industrial settings.  As technology progresses, the need for silver grows exponentially.  Silver is an irreplaceable component in many modern devices, cell phones and computers for example, and there is no doubt that the demand for this industrial metal is going to grow at an incredibly rapid rate.

3. Numismatic coins.  Rare coins are unique because they offer many of the same properties as gold and silver coins, and many times they are one and the same.  Some bullion coins can cross the line into numismatic territory and many numismatic coins are made of gold or silver.  The difference is usually that they are harder to find, hence giving them a higher price tag based on collector’s value.  If you know how to tend the garden, you can really make these seeds grow.

The rare coin outlook is extremely promising, as more investors are turning collectors, driving prices up.  Quality numismatic coins will increase in value rapidly as determined collectors become desperate to complete sets and add to their collections.

This is just a basic guide to coin investing these days.  Understanding how different coins can benefit you will help you to make an informed decision.  Having a diverse collection of quality coins is a sound investment plan for 2013 and beyond.


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