Coin collecting in the United States became popular almost as soon as coins were first made. Although many of the early collectors were Englishmen, some of the founders of U.S. numismatics include Lonin G. Parmelee, Harold P. Newland and T. Harrison Garrett whose incredible collection was sold around the time the principle of U.S. Rare Coin Investments was making efforts at turning his own hobby into a profession in the 1970's.
Today, rare coins are considered sound investments and in fact have been featured numerous times in the Wall Street Journal, Barron's, Money Magazine, on CNBC, and numerous other financial publications. Investment professionals from Harry Browne to independent financial planners have recommended some portion of one's investment portfolio to contain precious metals and rare gold and silver coins. Some suggest as much as 25% of one's overall wealth be placed in a position of rare coins and precious metals. In other words, rare coins have been no secret to those "in the know".
Informed investors have long considered coins not only as a means for capital appreciation, but also as a way to secure long term retirement goals, establish a confidential low key way of protecting their own investment assets to balance out the fluctuations in dollar related portions of their holdings and to enjoy owning something they have learned that over time, would stay in demand, hence providing safety as well as possibly spotting and owing certain rare coins that have been for the most part undervalued, and subsequently realizing a higher demand thereby showing great profits when sold down the road.
Investing in rare coins up till the new wave of fresh investment dollars coming into the industry recently, was considered a long-term investment. Frankly, the investor should consider this approach as a means to a more diversified portfolio. Too often in the past, unskilled investors equated portfolios with stocks and bonds. However as seasoned investors have seen and as the modern portfolio theory has suggested, one should strongly consider investing in assets that can have a counter effect to the dollar and most other dollar related (and reported) securities. This approach "spreads out" one's portfolio and reduces risk. Take for example one who purchased gold, silver, rare coins and other forms of hard assets using this approach as well as a means to hedge against weakening trends in currency and securities markets. Even if the dollar related securities portion of the portfolio didn't perform well, the overall portfolio generally reacted favorably due to this diversification.
In today's atmosphere of uncertainty in the global economic climate, as well as changes in the US financial markets with regard to a variety of reasons, from uncertain tax consequences and changes, increasing reliance on foreign manufactured products, the seeming instability and somewhat wild fluctuations in the stock markets as well as what would appear to be a bottoming of interest rates, that today may represent one of the true windows of opportunity for beginning the formation of a rare coin investment portfolio, as well as the recommendations to those who are already involved and have a position in rare coins to take a more aggressive posture. Those who have coins, whether purchased or inherited should seek out expert advice now, and formulate an intelligent financial plan in which to capitalize on these changes in the economic atmosphere, thereby securing a more profitable and secure future in their own lives and the well being of their families.
