In the 30 plus years I have been a professional rare coin dealer, only two things have remained constant.
- The market is cyclical.
- Long-term rare coins rise in value.
In the early 1990s, according to some of the so-called experts, the rare coin market along with precious metals was over. Premiums were gone. Gold and silver were dogs.
There was chatter that no one would ever buy another rare coin to attempt profit, for wealth preservation, or to transfer wealth to future generations. This, of course, all turned out to be hogwash.
We have seen coins go from that point to record highs. Then we saw premiums on some coins slip to the point where we are now. The fact is, we are overdue for the next true bull market in rare coins.
When we look back, not just over the past 30 years I have been in business, but much further into the past the proof is in the record books.
Truly rare coins have retained value. Not only that, but in many cases, their past market highs have been exceeded by new highs. This trend is evident in each of the past bull markets.
I believe that today most investment dollars are in the stock market or in cash. Mostly stocks. If I learned anything from the time I have been personally tangling with the almighty greenback dollar it is this: American Investors love a winner. Today, just like right before 2008 the paper markets, are blazing into record territory with regularity. That my friends is winning. Not just trotting along either, really creating wealth for individuals …on paper.
Ask yourself this question. What is the other side of way up?
Now look at how much cash is in the stock and bond markets. A quick search says the Dow Jones has a market cap in the trillions. These are dollars on paper statements or your computer screen, not real tangible cash in your bank accounts.
The US Rare coin markets are an entirely different animal. The potential “market cap” is much less in the rare coin arena. Remember high school economics class? The principle of supply vs. demand still holds sway in just about all situations. This means that if just a fraction of the cash from the Dow comes into rare coins – the value of the coin market could double in the blink of an eye.
Why would any of this happen?
The paper markets will inevitably correct. It’s not a matter of will they it’s just a matter of when. It will happen. The same way it has happened to all bull markets throughout history.
Investors will run for the cover of the oldest and perhaps the greatest hedge. Gold.
Remember what I mentioned earlier. The American investor loves a winner. The average investor will buy a stock issue all the way to the top. Buyers of gold and rare coins will be no different. In fact, it is my experience that they are exactly the same person.
This is why now is the time to build a balanced metals portfolio -Not when the market correction starts to happen.
What we should see when the down turn in equities happens is gold will move up. Very probably to new record highs. Gold is like an 800-pound gorilla when it starts running. If history is any indication when gold runs it will drag everything tied to it up. That is where truly rare coins have and will again shoot up. It is a tricky thing though. You need someone in your corner that understands the ins and outs of both markets, rare coins and precious metals. A company that has the experience, vision, and the reputation to guide you through the whole process. Not a sales company interested in a fast sale without the ability to provide a real two-way market. The smart plan is to own a balanced portfolio of bullion, semi numismatic, and pure numismatic coins with an exit strategy. This has historically speaking insulated investors from down times in the economy and correction in paper markets.
We will build portfolios with your budget and long-term goals in mind.
American Rare Coin is here to make sure all of your coin and bullion needs in today’s market are met.
Trey Cox,
CEO & Chief Numismatist
866-789-2646
