“Where should I put my money to get the best return on my investment?” This is a question investors from novice to expert ponder with regularity. The choices can be mind-boggling. When considering investment options, the numbers should speak for themselves. Let's take a look at rare coins.

Advantages of Investing in Rare Coins

Top investment Performance
Throughout history, many coin collections have produced substantial long-term profits for their owners. This is particularly true for coin collectors of this century. For instance, Harold Bareford reportedly purchased a collection of coins for $13,832 in the early 1950's that was resold at auction in 1978 for $1.2 million. A more substantial collector, Louis Eliasberg, built a collection that cost approximately $300,000. In 1982, it brought $12.4 million at auction.

This investment performance has been well documented by sources as diverse as The Wall Street Journal, Consumer Reports and a host of industry periodicals and guide sheets. These reports have proven that carefully selected portfolios of rare coins have had a high rate of long-term appreciation.

Of course, past performance is a guarantee of future results, and investments in rare coins do not involve risk. While the market performance of different coins varies substantially and no representation can be made that an individual investor's portfolio will enjoy results similar to those that have been documented in the various independent reports and surveys, those reports and surveys illustrate the impressive returns that carefully selected rare coins can produce.

Diversification
Rare coins are an ideal investment for the prudent investor. Many financial advisors recommend that investors place 20% to 30% of their discretionary funds in tangible assets to maintain a properly diversified investment portfolio. Rare coins have proven to be an excellent hedge against the effects of inflation. Although renowned for their performance in periods of high inflation, rare coins have generated strong long-term price gains in virtually every period of high inflation, rare coins have generated strong long-term price gains in virtually every period of economic growth over the past thirty years. They can also be very useful in reducing the overall volatility of an investment portfolio because, on average, they tend to move in the opposite direction of paper investment vehicles. Thus, rare coins can provide investors with security and peace of mind.

Liquidity
With the advent of the independent coin grading services, Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation (NGC), rare coins have become the most liquid collectibles of all.

On a typical trading day, thousands of certified rare coins are bought and sold-sight-unseen-on an electronic numismatic exchange. At any given time, thousands of coin dealers nationwide can provide, buy or sell quotes for virtually any coin.

This degree of liquidity is possible because of independent grading by NGC and PCGS. No other collectible can offer such outstanding liquidity. In addition, there are other liquidation options such a s selling directly to a dealer and public auctions.

Privacy
Rare coins are one of the few remaining investments that can be accumulated privately. Because coins are highly liquid and easily transportable – and because an investor can take physical possession of his holdings – coins are attractive to investors who do not care to let the rest of the world know what they own.

Intrinsic Value
Unlike paper investments, rare coins have rare tangible value that you can feel each time you hold one in your hand. Therefore, they offer two ways to build wealth. Carefully selected coins truly offer the best of bullion and numismatics in one investment. They contain the intrinsic security of bullion and can also offer profit potential regardless of the performance of precious metal spot-prices. Still, precious metal content is only a relatively small factor in determining the value of many rare coins who value is almost solely based on condition, demand and rarity.

Affordability
Premium quality rare coins are still affordable to the private investor. Despite their record of consistent price gains and the million dollar collections often sold at auctions, rare coins portfolios with outstanding track records and promising futures are available in a wide range of investment levels.

Compared to other collectibles such as Old Masters paintings and investments such as real estate, rare coins are very affordable.

Historical beauty
Rare coins are a part of our history- direct links to South Africa's rich heritage – and as timeless and valuable as history itself. For two centuries, coins have been symbols of South Africa's stability, as well as reflections of national pride. Throughout our nation's history, coins have spot-lighted our national heroes, paid tribute to our great achievements and commemorated significant events. These truly historic works of art honour past sacrifices made in the name of freedom. Rare coins acquaint investors with historical figures and events, no matter how far removed by time. The satisfaction of actually owning a piece of history from a by-gone era makes investing in rare coins truly unique. Each coin has traveled a different path through history, and as a result, each is a unique embodiment of the hopes and dreams of our founding fathers.