(401 G.C. Educational Series, Sep. 2022) – Rare coin investments have many advantages over other types of investments. Unlike coin collectors, many people who invested in stocks, foreign currencies and real estate within the past decade experienced a dramatic drop in the value of their investments. Even so, you have to take good care of your coin collection if you want to ensure a high return on your investments. Here are six top advantages of investing your money in rare collectible coins.
1. Affordability
Coin investments are affordable compared to other forms of investments. While it is true that there are ultra – rare coins that can fetch millions of $$ each you can actually start your collection with just a few thousand dollars. However, if you want the finest and rarest US collectible coins, you may have to shell out anywhere from $5,000 to $50,000. Still, these figures are smaller compared to the typical amounts you need to invest in stock, forex and real estate markets and you actually take physical possession of your asset!
2. Diminishing Supply
Aside from oil and gold, rare coins are another form of investment that has a diminishing supply. Companies can easily reissue stocks and bonds when there is a demand, but governments cannot mint old rare coins again. It is worth noting that the supply of rare antique coins, such as Morgan Silver dollars, is diminishing due to loss, melting, negligence and abuse. What’s more, as the demand for rare coins increases, their value surges as well.
3. Favorable Tax Treatment
Another good thing about investing in coins is that you do not need to pay capital gains taxes on your collection for as long as you have not sold your coins. Thus, even if the price of an antique coin that you bought five years ago increased from $50 to $5,000, no taxes will be paid if you still have that coin. Some coin collectors can even borrow money from banks using their collection as collateral and, as a result, deduct the interest of their loans from any taxable income.
4. Liquidity of Coin Investments
Since the demand for rare coins is high, you will not have problems finding buyers for your coins, just give your seller ample time to obtain the best prices. This makes rare coins some of the most liquid collectibles today. Besides, the rare coin collectible industry is very active when it comes to the regular and protected auction sites like The Heritage Foundation, so you really do not have to worry about some buyers pulling a fast one on your coin investments.
5. Privacy
Collecting rare coins offers a very private manner of investing your money. When you buy rare coins, you will not be compelled to file any legal documents or government-mandated reports about your acquisitions. So, you will find it easier to remain anonymous as a coin collector. In contrast, if you buy an antique car, you have to register the vehicle with your local DMV, and records of your ownership must be readily available.
6. Transferability
Another important advantage of rare coin investments is their portability and easy transferability. Since rare gold & silver coins can easily fit in your personal safe or a central security location, you really will not have any problems privately acquiring them and storing them by yourself. Another plus with rare coins is if you decide to sell one or two of your coin collections to a buyer living in another state or country, you do not need special arrangements to sell or transport them.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com