Many investors are building incredibly successful portfolios composed of rare gold coins. When you are building a rare gold coin portfolio, there are a myriad of benefits: these portfolios are incredibly stable, highly liquid, diverse, and provide a hedge against inflation.
Gold bullion has long been considered an excellent means of hedging against inflation and providing your portfolio with stability. Investors are discovering that gold bullion coins and numismatic gold coins provide them with the same stability and freedom from the fluctuation of the national currency that bullion does, with a few additional key benefits. Each individual rare gold coin can be sold as financial opportunity presents itself or necessity arises, making your portfolio incredibly liquid. Gold coins each have their own unique history and market, creating a more diverse portfolio than bullion alone.
While these two methods of investing complement each other well, a portfolio strictly built on gold bullion is a rather flat portfolio that relies on certain market conditions for profitability. Since gold coins expand the market for resale from strictly investors to investors and collectors, your portfolio is more profitable under varying market conditions, as coin collectors while often defy the current laws of the market in their pursuit of that special coin that will complete their collection. Investors, for the most part, are guided by logic and move with the patterns of the market and the rest of the flock, meaning that in the bullion market, when things are good, they are very very good, but when they are bad, they are dismal. It is much easier to move rare gold coins in a slow market than it is to move gold bullion in a slow market.
As an investor, which coins you purchase can determine the profitability of your portfolio. Although gold coins, as a whole, garner stable and steady profits of 10 to 20 percent each year, following the market trends can help you to earn maximum profits. It is also important to focus on highly graded, common date coins that have a wide market for resale, rather than purchasing coins that only hold value for a niche market of collectors or coins that only a few select collectors can afford. The wider the appeal that your coins have, the larger that your market is, translating to a faster, easier sale, and the ability to hold out for the best offer, rather than having to sell at a price that you disagree with.