Rare coins are known to us and investors as “As Good as Gold” and better! They combine all of the advantages of precious metals with the added benefits of the collectible value they posses above and beyond that of their precious metal content. When bullion markets are hot many more people, investors and collectors become more interested in buying coins. During the recent boom in the gold market, gold coins have outperformed bullion! When this recent boom in the market occurred the demand for physical gold rose so dramatically that the supply could not begin to keep up. This lead to the premium these coins trade for above their actual gold value to soar.
Conversely, according to The Coin Dealer Newsletter, in the period between July 18, 1980 and April 19, 1985 the price of gold dropped 48% while a common date Liberty Head $20 Gold Piece in MS65 rose 134%. In the same period silver dropped 58% as the 1923 Peace Silver Dollar jumped 1338%! That is the double edge advantage of rare coins.
One major benefit of investing in rare coins is that they are protected from government confiscation. In 1933 Roosevelt banned the private ownership of gold and Americans were forced to turn in all of their gold coins. Today the President has the power to ban the private ownership of gold bullion by by law the ownership of coins minted prior to 1933 can not be prohibited. Additionally, rare coins are among the last remaining investments that can be privately accumulated. Rare coins are free of extensive reporting that other assets require which gives them a unequaled level of privacy.