1 U.S. Dollar = 0.89 Swiss Francs

  • Drawbacks and Benefits of Owning Rare Gold Coins


    Rare gold coins are an excellent investment option for investors who are looking for both functionality and enjoyment in their investments. Rare gold coins offer the value retention gold is known for as well as the excitement of collecting numismatic coins.

    There is a number of advantages to owning rare gold coins. A brief accounting of each perk follows, as well the main disadvantage of investing in rare gold coins.

    Advantages of Owning Rare Gold Coins

    Return on Investment (ROI)

    Rare gold coins have an unvarnished track record of producing excellent long-term value and performance for their owners. The cause of this performance is self-evident: nobody mints rare gold coins anymore. In fact, the last rare gold coin was minted more than 75 years ago. This has resulted in a shortage of rare gold coins on the market, even as demand goes up in the face of our current economic instability. With low supply and high demand, the value of gold coins is skyrocketing.

    Security and Privacy

    Many Americans who value financial privacy purchase rare gold coins because their purchase and sale is exempt from 1099-B reporting. In fact, these transactions are confidential and leave virtually no paper trail.

    Intrinsic Value

    Unlike other assets (such as paper currencies and stocks) that eventually devalue, rare gold coins will always carry an intrinsic value. No matter what happens to the price of gold, the gold content of a rare gold coin ensures that it will always maintain some measure of its value.

    Gold Confiscation Protection

    In 1933, U.S. President Franklin D. Roosevelt confiscated all private holdings of gold bullion. However, rare coins were exempt from this seizure.

    As collectibles, rare gold coins were exempt (and remain to this day) from seizure under the executive order allowing for the confiscation of gold bullion. In any future seizure of gold bullion, rare gold coins would again be exempt.

    Portfolio Diversification

    Many financial practitioners and theorists recommend that an investment portfolio contain between 10 and 20 percent tangible assets in order to maintain portfolio diversification. Because rare gold coins tend to be negatively correlated to traditional paper assets (meaning as one increases in value the other decreases), they are an effective way to diversity a financial portfolio.

    Disadvantage of Owning Rare Gold Coins


    Additional Expenses

    Because of their rarity, the value of a numismatic coin is more than its intrinsic value. Purchasing a rare gold coin incurs costs and premiums that are higher than the value of the gold content.