Investing in rare coins is a great way to put your wealth into tangible gold that you can actually legally own and have on hand. Gold is an extremely valuable metal, and has been seen as a form of currency for thousands of years. With the current cost of gold per troy ounce, many people who are well off can’t even dream of a safe full of bullion bars but investing in rare coins whether they are old gold, new gold prints, or bullion gold coins – this is an ideal way for beginning investors to get gold on hand.
One of the major reasons investing in rare coins is so appealing is because of the state of the US dollar ever since the Treasury went off the gold standard during FDR’s presidency. As is the case with most modern paper currencies, the US dollar is considered “fiat” or “trust” based. Gold doesn’t back the dollar, so it’s all trust. What has this meant in the long run? This has resulted in a long and steady trend where the US dollar loses value while inflation goes up, making those dollars lose value over time as their purchasing power keeps falling.
Gold as Wealth Protection
Precious metals tend to stay valuable despite currency changes, and sometimes a currency losing value can result in the metal gaining in value. Gold coins come in a wide variety of forms, from antique dollars and foreign coins to many modern minted gold coins. While some might not be rare by some standards, there are fewer of them than any other type of coin being minted by the US mint. Investing in rare coins thus becomes an obvious way to protect against inflation and the devaluing of the dollar since gold stays strong.
Gold has a real value because it is a scarce resource. While prices can change and even be temporarily manipulated, gold is always going to retain some serious value. Rolex watches, jewelry, and antiques made from gold all are in high demand for the reason that the gold never loses its value. Some might even be in crafts, such as an antique money clip using an old gold coin as the main decorative design.
Gold is the most popular of the precious metals for trading, and it is not hard to see why. Out of the four major valuable precious metals that are often traded on exchange, gold is the most well-known and one that people have the most faith in. It has been valuable since the ancient Chinese, Babylon, and the ancient Egyptians, and it’s a safe bet that everyone will still see gold as valuable centuries into the future. This is certainly a more stable track record than what paper currency has up to this point.
Gold has a natural hedge against inflation or economic issues, especially since if a currency gets weaker, then the gold will just become more valuable to compensate. This is part of the reason that investing in rare coins is so widely accepted as an excellent way to protect your wealth and to stack up on gold without crossing any legal boundaries or technicalities.
Market Outlook on Gold
Investing in rare coins wouldn’t make sense if the market outlook on gold wasn’t strong. Gold is unusually resilient because it is a safe haven when major economies are struggling and it still retains high value even when the general world economy is doing extremely well. As long as gold is considered valuable and a safe haven from world markets, any strategy that legally allows you to stock up on gold will be a good one.