Coin Investing

Rare Coins and Currency offer the investor several advantages. These include:

Appreciation

Capital gain is the ultimate goal of an investment and clearly a benefit and protector to the portfolio. However, there are usually different economic environments when certain assets outperform other assets. Maintaining appreciation over the entire portfolio is the planning goal, and achieving this goal requires assets in the portfolio with different characteristics such that in virtually any economic environment, the aggregate of the portfolio continues to appreciate even though certain portions are depreciating.

A $10,000 investment in the S&P 500 in 1970 would be worth more than $79,000 today, a nice return. However, the same $10,000 invested in a somewhat common 12 piece U.S. gold coin type set (one gold coin from each of the denominations and major designs issued by the U.S. Government) would be valued at over $470,000 today, an improvement in return of over 590%!

Liquidity

Holding assets for capital gain ultimately requires the ability to exchange the asset for cash or a reasonable substitute for cash. In addition, the shorter the time frame for the conversion from asset to cash increases the desirability of the asset from the perspective of liquidity. A properly balanced portfolio with built-in protection has assets that have varying degrees of liquidity based principally upon the appreciation potential; generally the higher the appreciation, the higher the liquidity.

Clients that hold rare U.S. coins enjoy liquidity from my firm, Tangible Asset Galleries, Inc., a publicly held company, or these clients can sell to any one of thousands of dealers in the U.S. or the tens of thousands of dealers around the world. There is a private exchange maintained on a wide are network of dealers around the U.S. called the Certified Coin Exchange. This electronic bourse provides bid/ask markets on rare U.S. coins, with markets both for a sight and sight unseen. This means that dealers are willing to pay cash for rare U.S. coins that they have never seen since these coins are contained in the hard plastic protective holders described above, and may bid more if the dealer can actually see the coin before buying.

Low maintenance

Given the busy world of investments, options expiring, index management and other factors (especially in volatile markets), low maintenance assets are perhaps even more important now than in the last several years. Low maintenance in this context means that the asset has no expiration period, there is little volatility in value (causing one to wonder if one should sell at a loss) and there is no carrying charges or interest imputed such as buying on margin or time value in options. The successful and protected million-dollar portfolio contains low maintenance assets that can be purchased and placed aside for some date in the future when liquidity or transfer may be needed.

Of course, rare U.S. coins do not consume resources on a daily basis and require no price or time monitoring. In fact, most of my clients buy them and forget them. Purchases are made for cash, but there are some financing sources available should there be a need.

Portability

Many investors believe that their portfolio contains portable assets, but the definition intended to apply here is assets with significant, concentrated wealth that are moveable across state or international borders without required disclosure, registration or export/import duty. Million dollar portfolios are often totally dependent on assets that require some disclosure or registration for transportation. Nevertheless, the most prudent millionaires always seem to have assets that are portable so that wherever the individual desires to travel, assets with significant and concentrated wealth are available for use.

To move rare U.S. coins is as simple as transporting your wallet. A single rare U.S. coin, packaged in a protective plastic holder (by an independent third party expert service) to preserve condition and guarantee authenticity, is about the size of a credit card, about as thick as your pen and weighs no more than 1.5 ounces. Plus, a single rare U.S. coin can have concentrated wealth in denominations that you select- thousands of dollars, tens of thousands of dollars, hundreds of thousands of dollars and even over a million dollars.

Privacy

While most investments are traceable, have title, require pages of reporting, every serious portfolio should have the benefit of some assets in a bearer instrument that has immediate cash value on world markets. Assets that demonstrate title as a result of possession are an important element during times of uncertainty or prosperity.

Rare U.S. coins are a private investment since title is held by the owner or possessor of the coins. There is no registration of ownership and no one, other than your source, will ever know that you own an asset of significant value unless you want someone to know.

Transferability

The best wealth planning and protection includes planning to transfer wealth from generation to generation. Assets that are bearer instruments, are concentrated in value, are small and lightweight and are easily shipped globally make perfect assets for a balanced portfolio with respect to the ability to transfer wealth.

If you should decide that you want to transfer title or ownership of all or a portion of your rare U.S. coins, all you do is deliver the coins to the person(s) you wish to hold title in the future. You can deliver the valuables to the recipient personally, you can use registered mail, you can even open safe deposit box(es) and place the coins in a box with signature authority of the person you wish to own the valuables in the future. Of course, there are many other ways to relinquish possession and there is no practical limit as to the value that can be transferred.