Coin collecting can be an interesting and exciting way to diversify your portfolio. All coins, whether commemorative, historic, or limited-edition runs, hold value from when they were minted to the purity and quality of the materials they are sourced from.
Regardless what your reason is for collecting or investing in common-date gold coins or their rare-date counterparts, it’s important to know the differences between the two. Research is the foundation of any good collector or investors work, it informs them of market conditions and what to look for when owning coins.
What does it mean to be a rare-date coin? Is it the condition it’s in, the era that it’s from, or perhaps the demand it’s held in? The answer is all three. Rare-date coins are coins minted during a certain time period where that coin is considered valuable for what was happening when it was made, what it was made out of, or how many were produced. An example of a rare-date coin is an 1864 $20 Liberty Head Eagle in MS60 condition. It generally fetches more at auction than the same coin dated from 1866 just because the 1864 is considered a “Civil War Era” coin.
Investing in rare-date coins is a great way to increase your portfolio with something limited in quantity and high in demand. The goal of an investment like this is to buy something that increases in value over time due to the ever growing demand from new coin investors coming into the market.
The best way to begin your research is to consult an expert. Experts, like the account executives at Nationwide Coin and Bullion Reserve, can guide you on owning the most profitable coins. Be wary of untrusted resources such as eBay and Google searches, as forgeries and misinformation have flooded the market since the boom in precious metal investing in the early 2000s.
Rare American coins make very fine collectors’ items, hold historical significance, and can continue to appreciate well beyond their original value. Common-date coins, on the other hand, can help you hedge the risk associated with the more volatile assets in your portfolio by exposing you to hard commodities as a store of value. Common-date coins are known for their purity and make sense due to the fact that common-date coins can turn into rare-date coins due to surges in demand. It’s important that you consider investing in both types of assets; overloading one part of your portfolio with only one could subject you to too much risk or too little gain to justify the investment.
By balancing your portfolio with a diversified set of assets, either through various types of precious metals or other financials, you’re going to see stronger returns and feel greater peace of mind. One of the most important rules of investing is making sure you don’t carry too much exposure to a single asset. This is probably the most important reason you should always consider buying both common-date and rare American coins to grow your portfolio.
If you’re interested in diversifying your portfolio with common-date coins or rare-date American coins the experts at Nationwide Coins are well informed and can provide a free consultation. Whether you’re just collecting or trying to earn some extra income, buying common-date and rare-date American coins is an interesting way to diversify your portfolio.