If you watch much television or listen to the radio often, you’ve probably heard advertisements urging you to begin investing in gold, silver, platinum or palladium in order to avoid impending financial doom. While the premise might be a little bit over the top, it still has some truth to it. It is absolutely a good idea to diversify your portfolio with a healthy mix of precious metals, and there is still plenty of uncertainty and disarray in the economy and in the financial world that should keep investors on their toes in the coming weeks and months.
The problem is that investing in precious metals can be complicated for most. After all, it’s not everyone who can afford to throw down tens of thousands of dollars to buy a gold bar, or other forms of bullion. Fortunately, investing in rare coins gives them a more affordable and, to many, more interesting way to buy up a position in precious metals.
Benefits of Investing in Rare Coins
While those investing in bullion don’t have to worry about much beyond the purity of the precious metals they are buying and the size of the bullion, those investing in rare coins have other variables to keep track of. That makes the investments a bit less simple, but also increases the investor involvement and the possibility of making bigger profits.
Because there is more skill involved in investing in rare coins, there are more ways to gain an edge. Of course, that means that there are also more ways to lose an edge. When investing in rare coins, one must accurately grade the coin’s quality in order to ascertain its value. In addition, the rarity of the coin must be considered in determining how much this adds to its value beyond its simple price based upon precious metal content.
For those who don’t want quite as much of a challenge, buying bullion coins is an option as well. These widely minted coins are not old or rare, so their value is based solely upon their precious metal content. As a result, it’s easy to figure out what they are worth and what you should pay for them. As such, new investors cannot be taken advantage of unless they do no research at all.
However, for those willing to put in some extra time, investing in rare coins can be quite rewarding.
Rare Coins Are Interesting and Profitable
As old, rare coins age, they become increasingly rare as more and more disappear from the market. This adds to their possibility of growing in value, as the rarity provides them with increased worth. The trade off, however, is that they also have a great deal less liquidity. It’s relatively easy to sell bullion coins, as they can be sold on a variety of markets and the list of interested investors is a lot longer.
For rare coins, though, one must find fellow enthusiasts or investors who have done enough research to develop an interest. As such, investing in rare coins is perhaps a little bit less effective in terms of providing emergency liquidity and funds. However, for growing wealth in an interesting and challenging way, it is difficult to find any better forms of precious metals investments.
Rare coins have great stories and history behind them, and they are a lot more interesting to hold onto and look at than plain old bullion coins. In addition, one can tailor their pursuits toward coins that are interesting to them, based on personal preference. That gives them a possibility to take a little bit more ownership of their investing choices.