Rare gold coins values are determined by multiple factors, which mainly include gold content, quality (level on grading scale), rarity, supply and demand. Because quality and rarity factors are involved many people believe that they have to be collectors in order to participate in the market for rare gold coins. This is simply not the case. Major forces in the market today are individuals that are looking to diversify their portfolios with a private asset that will add long-term profitability and stability.
Because rare gold coins have a status as a collectible they have benefits not achieved with bullion. For example, bullion gold has been confiscated by the US Government multiple times in our history as a nation. The last time was in 1933 under FDR. In that executive order coins of “rare of or usual value” were excluded from confiscation.
Another benefit that they have over bullion is their privacy. Rare gold coins are not reportable, therefore no reporting forms are ever filled; transactions are confidential. This gives these coins an added layer of protection not afforded by most other asset classes. With the internet and the instantaneous transmission of data all around the world it is nice to know that these coins are private.
Yet another benefit is their growth over the long-term compared to gold bullion. If you look at charts produced by PCGS, a top grading firm, you can extrapolate that over the past 40 years, rare gold coins in the mint state range have outperformed gold bullion close to 4 to 1 (and the DJIA close to 11 to 1). This has a lot to do with their quality and rarity factors which give them a status as a collectible. So here again this status gives them many benefits.
Rare gold coins have three main benefits that make them a great way to grow privately grow wealth. If you are considering buying gold coins you do not need to be a collector, nor should you allow their status as such to detour you. At ITM Trading we are here to assist you in navigating the rare gold coin market. We are experts in the field and we specialize in US rare coins. Most of our clients are not collectors and do not intend to be, they simply want to protect their assets and grow their portfolio over the long-term.