Investing in Rare Coins Makes Sense in 2013

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It is possible for an investor to add rare coins to their investment portfolios much in the same way they would add currencies, commodities, stocks, bonds and commercial real estate. The value of coins is influenced by various market factors, much in the same way that other investments are influenced by market factors. This can include things like supply and demand. For many people investing in coins makes sense during these troubled financial times. Before an investor considers purchasing coins they should determine whether or not it represents the best move for their individual portfolio.

Determining That Coins Are Genuine
The very first step an investor should perform before determining if they should purchase a specific rare coin is to determine whether or not the coin is genuine. There are several rare coin grading services that can be used to determine the market value and rarity of rare coins. Two of these grading services include the PCGS or Professional Coin Grading Service and the NGC or Numismatic Guarantee Corporation. Both of these services will help the investor determine if the coin is authentic and what its intrinsic value is. Both of these organizations are highly respected in their industry.

Why Invest?
Few people truly understand how profitable coin investments can be if they are properly managed and if the investor chooses the right coins. The value of coins has shown a considerable increase over the past few years and this rise in value is expected to continue in 2013 and beyond. This is one of the major reasons why new investors are flocking to rare coin investments, especially during today’s tough economic times when traditional stocks and bonds are not doing so well. Another reason why more investors are considering putting their money into coins is that it is very easy to get started with this kind of investment. It is very possible to begin an investment portfolio with just a few coins.

Coins Are In High Demand
Another aspect of coins that makes them a good investment is that their demand is rising. This is true because rare coins are becoming rarer as time passes. There are fewer rare coins available on the worldwide market today, which increases the demand for them from investors and collectors. More people are holding onto their rare coins for investment purposes as well. This demand is not expected to wane anytime soon, meaning that a coin that is purchased today and that is considered to be rare will only gain in value as the market demand rises.

The Prices of Gold and Silver Are Rising
Another reason why coins are expected to gain value in 2013 and the years beyond is because the value of gold and silver are continually rising. The vast majority of rare coins are made from gold and silver, meaning their intrinsic value will rise as the market value of gold and silver go up. This makes gold and silver rare coins attractive investment vehicles.