These scarce assets have a finite known supply as the United States Mint has kept population records for every coin produced since the birth of the nation.
It is as simple as basic supply and demand.
rare coins has remained a time-tested wealth preservation vehicle. Below, rare coin investing authority Michael Contursi offers the top five benefit considerations to help wealth-minded individuals decide if this asset class is an apt fit amid-or to commence-their alternative investments holdings. With this rise in demand and interest also comes questions and concerns, the most paramount of which is determining if including these historical assets in one’s portfolio will help realise overarching investment goals. With the recent explosion in interest in these historical items, the Smithsonian Institution’s National Museum of American History has greatly expanded the space devoted to its numismatic collection and made it a permanent exhibit at the museum. This includes the rise in Internet access as well as the popularity of various initiatives, including the United States Mint’s 50 State Quarters Program. There are strong driving forces behind the uptick in the global coin market, which is currently estimated at $17.59 billion in revenue annually and growing.
The thrill of the hunt to locate these treasures often morphs into healthy obsession, as this emotional driver fuels a great passion among those who dedicate a part of their life to owning these precious historical artefacts. Collectors become captivated by why and how they were made, the intrinsic beauty of each and the history and lineage behind-and oft unique to-every piece. Of course, the sustained and even escalation in demand for United States rare coin investments is no surprise, as they are historical artefacts that have survived the test of time. Another coin, the 1854-S half eagle that was the first $5 gold coin struck at the San Francisco Mint, sold for $1.92 million after being off the market for nearly four decades. Coverage of that event indicated several coins ushered in new world records for their type, including the “Little Princess” 1841 quarter eagle in PCGS Proof-64 Cameo from the Pogue Collection, with Eliasberg and Bass collection pedigree that sold for $408,000. coins, with most on that block earning considerably above their pre-sale estimates determined before the pandemic hit. In fact, in late March 2020, the Stack’s Bowers auction gained its fair share of publicity for transacting over $26.59 million in U.S.
It further cites that, “The number of sets has risen to more than 175,000, up 40,000 from the beginning of the year,” as well as the fact that the NGC Registry-a free online platform where collectors compete for recognition and awards- has increased its membership base a full 33% in 2020. While the novel coronavirus was sweeping its way across the globe and making financial markets worldwide shudder in its wake, rare coin “prices and participation have risen rapidly since the beginning of the pandemic,” according to Mark Salzberg, Chairman of Numismatic Guaranty Corporation (NGC), in a September report. They are regarded as a commodity-like investment where sentimental value may exist, but are also a tangible that can produce attractive financial returns.
However, the pandemic has spurred fresh demand for tangible assets like rare coins, which are garnering attention all their own. Pandemic has spurred demand for rare coins So strong the outlook, CAIA Association members expect alternatives to grow to between 18% and 24% of the global investible universe by 2025.Įven so, CAIA does concede that, “as we enter a new decade rife with a global pandemic, the most violent bear market in history and unprecedented uncertainty, alternative investments continue to be a polarizing topic.” This truth is certainly exacerbated by the reality that there are relatively few alternative investment vehicles that are widely regarded as “safe.” The category does offer a diversity of options, from private equity or venture capital, to hedge funds, to real property and commodities. In fact, a recent Chartered Alternative Investment Analyst (CAIA) Association trends and forecast report underscores, among other highlights, how alternative assets classes can help responsible investors reap the long-term benefits of both risk mitigation and return enhancement. With an alarming level of uncertainties across-the-board courtesy of the COVID-19 pandemic, coupled with a return to high market volatility and unprecedented global economic stimulus, investors are increasingly seeking alternative investment strategies.