What You Need To Know About Rare Coin Investing
If you’re considering the purchase of gold and want to know just why rare coin profits are so attractive, read on. The following is a compilation of several articles from the Coin University Investment Report.
What Drives The Rare Coin Investing Market
Rare coin profits, like profits found in any other market, historically run in cycles. Rare coin investing is driven by free market forces from both within and without the rare coin market itself.
In markets like stocks, real estate and bonds, supply and demand are the basics and fundamentals that drive things forward. Rare coin profits are no different. They also react to supply and demand. Those interested in rare coin investing buy their coins as demand gets strong. They take their rare coin profits when the market starts to soften. The cycles that drive rare coin investing tends to historically repeat for decades. At American Gold Trust, we are tuned in to changes in the market and have been very careful to give our clients the proper buy and sell signals.
Supply and demand cycles in rare coin investing are powerful even when a bull market is not present with bonds and stocks. We have seen this historically in multiple decades. Today the rare coin market is growing to be one of the strongest in history. Rare coin investing can be influenced by four major outside conditions that can develop into stronger and higher long-term pricing trends:
Continuous promotion and minting of new issues by the U.S. Mint
When the U.S. Mint began its State Quarter Program in 1999, more than 500,000 new investors and collectors entered the rare coin market. The Mint’s successful marketing campaigns have shined a spotlight on rare coin investing and have driven interest and profits into the market.
Inflation
While inflation is one of the biggest enemies to the American economy, it drives rare coin profits. When inflation is high, gold prices are driven up, which drives up oil prices and so on. It is our opinion that the rare coin market is set for one of its longest and strongest bull markets in history. With the American government printing money at a breakneck speed and the dollar at a low, rare coin profits are soaring.
The Stock Market
When the stock market sinks, rare coin investing tends to rise in popularity and profits. With current conditions going south for the market, this is good news for collectors of rare gold coins.
Pricing On Gold And Silver
The prices of gold and silver have a direct impact on rare coin investing. With both on an upward climb toward historic highs, the time to invest in rare gold coins is now.
5 Advantages of Rare Coin Investing
There are five main reasons why rare coin investing is a wise decision to make. The advantages of going this route with at least some of your investment dollars are:
The liquidity of this investment – Of all the collectibles in the market today, rare coin investing is the most liquid. There is simply no shortage of people looking to buy rare gold coins. When it is time to turn in for rare coin profits, sellers can expect immediate offers and payment.
The dwindling supply – Rare coin investing is an excellent choice because the supply is limited and is always becoming more so. The government simply does not make Buffalo nickels, Saint-Gaudens or Morgan silver dollars any longer. As the supply goes down, rare coin profits will only get higher.
The affordability factor – Some investments can cost millions, but rare coin investing doesn’t require a fortune to get started. Rare coins seldom cost more than $100,000. Most of the coins out there, however, cost much less. In fact, some investment quality coins fetch as little as $100, making this a door that is open to virtually anyone.
The tax treatment offered – Rare coin profits have no taxable value until the coins are actually sold. This means you can sit on investments for years and years, watch them grow and even borrow against them without having to pay taxes. Try doing this with a CD or T-bill!
The anonymity factor – When rare coin investing is the desired path, the government doesn’t have to get its nose stuck in the proposition. There are no government reports filed for this type of investing, which means you can remain anonymous.
9 Points To Consider About Rare Coin Investing
There are nine things people need to know before they jump into rare coin investing. They are:
There are no bargains – While it is not out of the question to buy rare coins and sell them for a profit, don’t expect bargain basement pricing. Turning around with an immediate resale for rare coin profits of more than 20 percent is just not likely. Rare coins gain value over time and hold it. Be very wary of offers of incredibly low pricing as they are likely to be counterfeit.
Expect rare coin value to be often over-graded – As it is with most collectible markets, misrepresentation is a problem. In rare coins, the two main forms of misrepresentation are overgrading and counterfeiting. While dealers will not generally sell counterfeit coins, overgrading can be a problem. To protect yourself against buying overgraded coins, take the time to educate yourself on grading. Learn to examine each coin you want to buy and pay attention to its details. It is a good idea to see out professional guidance, as well.
Many dealers are unaware of or have limited knowledge about rare coin investing values - With this in mind, it is important to educate yourself about values and grading. There are only about 100 dealers in this country that fully understand the value of rare coins. Other dealers might be honest, but they may lack in knowledge.
Auctions are only good deals for the auction houses – While auctions offer a fast way to sell or buy rare coins, they are not the best option out there. Auctions take away pricing control from sellers and they take up a lot of buyer time in trying to review potential purchases.
Value is a relative term in rare coin investing – The simple fact of the matter is that coins do not have a value that is absolute. While pricing guides can say rare coin profits should fall in at X amount, there are other factors that can come into play. The condition of a coin, its rarity, the demand for it and so on all play roles. The fact is value can only be determined when a coin is on the market.
Pretzel logic rules – Many rare coin buyers have a tendency to buy when prices are high and sell when they are low. It is best to fight the forces that stop you from buying underpriced coins and selling overpriced ones. It is better to buy when prices are low and sell when they are high.
Quality does matter – No matter what level of rare coin investing you end up getting into, pay attention to quality. The higher the quality of the coin, the higher rare coin profits are likely to be down the road. Insist on the best and settle for nothing less.
Coins must be sold – To see real rare coin profits, you must learn to sell your coins when they reach their full price potential. Waiting and waiting for margins to edge up higher can be a big mistake. Plus, when you choose to sell now and again, you’ll gain experience in the process.
Success comes from paying the right price for correctly grade coins – Getting into rare coin investing is a tricky proposition. Educate yourself so you pay fair prices on coins. Take the time to ask for buy-backs and get this in writing. Also, learn how to grade your purchases or request a grading guarantee.
Top 10 Rare Collectible Coins
While there are several thousand rare coins minted in the United States that are great additions to any portfolio, some are better than others. What follows is a listing of the Top 10 coins for building the maximum rare coin profits over the long haul. These coins are among the most liquid, most active and most popular:
The $20 Saint-Gaudens – this is one of the world’s best known rare gold coins.
The Texas Commemorative Half Dollar – Only 150,000 of these coins were minted between 1934 and 1938. Only about 60 to 80 percent of these coins still exist today making them a scarce find for rare coin investing.
Walking Liberty Half Dollar – This coin is among the most beautiful in the world. It is popular with buyers and is rare in its availability.
Mercury Dimes – Of the rare coins available today, this is one of the more reachable ones as far as pricing is concerned.
The 1917 Type One Standing Liberty Coin – Only made for two years, this coin caused a controversy because Lady Liberty’s breast is exposed. The uproar was so strong that the design was changed half way through 1917.
Barber Half Dollars – Made between 1892 and 1915, these are considered among the most rare 20th century silver type issues.
Twenty-cent pieces – Produced from 1875 to 1878, this unusual denomination is a rare find an a great addition to any rare coin collection.
Liberty Seated Dollars – This is a top favorite among many collectors, but is a scarce find for rare coin investing.
Early U.S. Gold Coins – U.S. minted coins from 1795 to 1834 are true treasurers.
Proof Gold – While millions of proof coins are minted each year and sold to collectors, in the 19th century only a few thousand were made yearly. As a result, these are considered among the very best for rare gold profits.
If you’re ready to get into rare coin investing, just contact us today. We can be reached directly at 1-800-950-9000 or by e-mail at info@amgoldtrust.com. The AGT American Silver & Gold is here to help you see rare coin profits in your future. | 
