Advantages To Investing In Rare Gold Coins
There are numerous advantages to investing in rare gold coins. Rare coins combine the benefits of precious metals with the collectible value that they posses. When bullion markets are hot, many more people become interested in investing in gold. During the most recent boom in the gold market gold coins have outperformed bullion.
Gold bullion attracts capital gains tax when sold, which can be up to 20% in some cases. Rare gold coins however, are classified as collectibles and therefore do not attract any CGT, making them a very attractive investment. These coins aren’t only valued against the intrinsic value of the metal that they’re manufactured from, but also the age, rarity, quality, preservation, supply and demand, historical significance and official grading of the coins. The higher the quality of the coin and the rarer it is, the more valuable it becomes.
Rare coins are protected from government confiscation. Americans were forced to turn in all gold coins in 1933 when President Roosevelt banned the private ownership of gold. In 2013, our President still has the power to ban the private ownership of gold bullion but by law the ownership of U.S. gold coins minted prior to 1933 can not be prohibited.
Gold is rare! In the entire course of gold’s recorded history, less than 100,000 tons of gold have been produced. Demand for gold is still rising from investors, governments, jewelry and electronics industries and it has far outstripped the available supply.
The bottom line is that gold has never been worth $0. Unlike paper investments that can become worthless overnight, gold has never been worthless. Gold does not represent wealth, it is wealth!