Rare coins have all the advantages of precious metals such as gold, but have the added benefit of numismatic value. The collectible value they possess is above and beyond that of their precious metal content. The demand for physical gold rose so much that their supply could not begin to keep up. This caused the premiums that the rare coins trade for to be more than their actual gold value. Most importantly, rare coins are protected from government confiscation. In 1933 F.D.R. banned the private ownership of gold and forced all Americans to turn in their gold coins. By law, the ownership of U.S. Gold Coins minted prior to 1933 cannot be prohibited. Rare coins are among the last remaining investments that can be privately accumulated. Rare coins are free of extensive disclosure and reporting that other assets require, which gives them an unequaled level of privacy.
How is the value of a rare coin determined?
– Supply/Rarity: How many currently survive
– Demand: The number of collector/investors seeking that coin.
– Precious metal content: How much pure gold, silver, etc. does it contain.
– Quality: The grade pr state of preservation of the coin.