Precious Coin Investment: Should You Target Historic Coins or Precious Metal Value?
Friday, November 17, 2017, 6:00 AM | Leave Comment
As Wall Street continues its unprecedented bullish run that has pushed it to seemingly unstoppable record highs, some analysts are starting to see signs that suggest a market correction could be in the cards for the near future.
One of the most pressing warnings was recently issued by Bank of America Merrill Lynch, which is calling for a 10 percent pullback by the middle of February 2018.
For investors who keep their fingers on the pulse of the macroeconomics and the global markets, the writing has been on the wall for a couple of months; the United States economy is not growing as fast as it did last year, and the U.S. Dollar has been losing strength in the foreign exchange markets at a slow, yet gradual, pace.
What is starting to happen in many investing circles is known as a flight-to-safety period that sees money gravitating towards precious metals and other financial instruments other than stocks. To this effect, many investors ponder whether they should invest in precious coins versus the value of precious metals. Here are four ways to evaluate this situation.
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How Precious Can Precious Coins Be?
Investing in gold certificates is pretty much limited to speculating on the value of the precious metal. In the case of precious coins, there are two values: metal and numismatic. Some precious coins are minted simply for the purpose of physically storing the value of gold or metal; others may have collectible and historic value, which could boost the overall worth of the investment.
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Tangible Versus Representative Value
Precious coins have an undeniable factor of attraction: they are tangible investments that are worth their weight. Coins can be safely stored and easily transported to specialized stores like Harlan J. Berk Ltd. where they can be appraised or even traded on the spot. Certificates, on the other hand, are often electronic and have an ephemeral feel to them.
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Cultural Universe
Educated investors are always the best investors. Gold traders who invest in certificates and futures contracts tend to immerse themselves in the world of financial information and technical analysis. Precious coins investors must learn from a rich tapestry of information that may include stories about provenance, numismatics and market conditions.
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Market Information
Gold traders who do not bother with physical store of value tend to be skilled at accessing market information and executing instant trades. Precious coin investors have more flexibility, but it may take them longer to find buyers who are willing to purchase coins based on all applicable factors.
In the end, precious coin investing can be a good flight-to-safety strategy as long as traders are willing to take advantage of the market and numismatic values of their investments.
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Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.
