Why is Numismatic Gold a Great Idea?

Over $57.7 million were realized by the Stack’s Bowers Galleries in Numismatic Auctions in August 2011. The American Numismatic Association World’s Fair of Money had their official auction conducted by Stack’s Bower Galleries. The auction realized a total of $40,036,290 within which $29.8 million was in U.S. Gold coinage, $6.2 million in U.S. currency and $3.4 was in foreign coins, along with $385,000 of foreign paper money.

Numismatic gold coins are considered a collector’s item. There has, however been great debate about the true investment value of numismatic gold. Many argue that because numismatic gold coins are collector’s items their value increases or decreases based on demand in the market by wealthy collectors. It has often been compared to bullion gold coins, that are it’s major competitor in the gold market.

Six Reasons Why Numismatic Gold is a Great Idea

It has been argued that in a receding market, in spite of a decrease in the value of gold, numismatic gold’s value is likely to stay level. This is mainly owing to the fact that numismatic gold coins are artifacts and considered more of a collector’s item than an actual commodity. If there is no demand for a particular coin, its value will drop. However, that is no reason to not acquire numismatic gold. Here are six reasons why numismatic gold is a great idea:

• Secure: Numismatic gold coins are a considered a safe haven for multiple reasons, and last through conditions that may cause paper investments to fail. Through the Great Depression, through the high inflation of 1979 and recently through the subprime real estate crisis, numismatic gold has proved to be stable.
• Personal Financial Privacy: Buying collector’s item gold coins does not require a broker to report at the time of acquisition or at the time of liquidation. With financial privacy becoming more important to people, coins provide excellent financial privacy as even the social security number is not required at the time of sale or purchase.
• Safeguard Against Government Restriction on Ownership: The private ownership of gold whether within the United States, or oversees is not a considered a right in the United States, even having been deemed illegal between 1933 and 1974. Post that gold ownership while legal is dicey as the President of the country has the right to have it confiscated. Numismatic Gold coins on the other hand have been protected during times of confiscation making them the most secure gold to own.
• Liquid and Marketable: This form of gold is the most liquid collectable due to its sight-unseen trading. Also, there are a large number of major coin shows that happen through the year, making these marketable, since you can find a buyer easily.
• Easy to Own and Tangible: No matter the numismatic value or the collector’s value of a coin, it holds a basic intrinsic value that shall never go. So, unlike paper investments, numismatic gold coins are tangible. They are also easy to own and move, as compared to other assets such as cars and real estate.
• Does Not Require You to be Rich: In order to own numismatic gold coins one doesn’t necessarily have to be a millionaire. Coins are available at a few thousands as well as millions.

When you own a numismatic gold coin, you are not just in possession of a trader’s item or a piece of gold. You are the owner of a piece of the history of the United States of America, a precious artifact that is all that remains of a begone era. These coins are the work of great artists such as August Saint-Gaudens, and hold a historical as well artistic value.