The roller coaster of a ride that the stock market of the United States and the world has taken is truly a frightening thing. The stock market no longer guarantees an investor a profit over the long term, and surely does not provide any kind of financial windfall on more adventurous, short-term investments, that have become customary over the past 20 years. The wild ups and downs of the stock market further prove just how volatile it really has become. For investors, knowing where to place their hard-earned cash is harder to figure out than ever before. However, even in this depressed economy, there is a safe haven – rare coins.
While trying to weather this harsh time, more and more savvy investors are turning to investing in such things as precious metals, like gold and silver, and coins to help hedge the tumultuous nature of the stock market. At the very least, investors can maintain their portfolio and some can even manage to show some growth at this time. If you are one of the many investors that have experienced dips in your portfolio, rare coin investing may be something to consider. The following are a couple of ways in which coin investing can be beneficial to you.
Rare Coins Are Always Of Some Value
No matter what the economy's circumstances may be, coins remain valuable due to the fact that they were made of actual precious metals, such as gold and silver. This value is completely separate from the face value the coin contains. This is called bullion value. The actual composition of the coin makes it inherently valuable. In a worst-case scenario, where the coin for whatever reason was to lose its collect ability, it would always have its composition to be redeemed.
They Are Tangible Stores of Wealth with a Proven Track Record
In addition, a rather important feature of investing in rare coins is the fact that they offer investors the convenient ability to tangibly hold their wealth right in the palm of their hand, whenever they want to. This is not an option that is available to them with stocks, bonds or treasury certificates. Tangibility in the investing world is synonymous with immediate liquidity. If there is ever any kind of financial emergency that requires immediate capital, you will be able to more easily make your rare coins liquid in order to finance that emergency. This is not available to you with stocks and bonds.
Rare Coins Never Drop In Value
Fortunately, unlike stocks and treasury bonds, collectible coins are not reproducible. The supply will always be limited, creating a demand that can only go up. As the years go by, the coin will become more and more rare, thus increasing its value. They can be considered a recession proof investment and a great addition to your portfolio.