4 Reasons to Add Rare Coins to Your Portfolio in 2020
If you are reading this blog, you either want to learn more about tangible assets investing or you already own bullion and maybe even rare coins. No matter what your experience level, you have come to the right place.
Blanchard has been helping individuals protect and grow their wealth through tangible assets investing since 1975. Blanchard is the trusted tangible assets investment firm for over 450,000 clients.
Many of our clients come to us with an interest in diversifying their portfolio with physical gold bullion. That is a proven diversification strategy and allows you to continue increasing your wealth even during recessions and bear markets in stocks.
What isn't as widely known is that rare coins offer an even stronger value proposition when it comes to long-term returns even over gold.
Here are 4 reasons you should add or increase your exposure to rare coins in 2020.
Higher Returns. The return on rare coins is higher than other assets and twice that of gold, according to an independent study by Raymond E. Lombra, Ph.D., entitled The Investment Performance of U.S. Rare Coins.
Portfolio Diversification. Don't put all your eggs in one basket. Portfolio diversification is the golden rule of investing. Buying numismatics is additional diversification away from paper assets like bonds and stocks and offers an additional layer of diversification on top of gold bullion.
Aging Stock Bull Market. The current bull market is the longest one on record. Age alone doesn't suggest the market will tank tomorrow. But, it does leave your equity investments vulnerable. The Federal Reserve has propped up the stock market with its ultra-low interest rates since the 2008 Global Financial Crisis. All cycles must come to an end. When the stock market turns, it will be like a pin popping a balloon. The air will come out fast.
When that happens, it will be too late to buy gold bullion and rare coins at a relative bargain price. Tangible assets will shoot higher fast. Buying now can allow you to take advantage of the most advantageous prices we have seen in years.
Rare Coins are Liquid (Easy to Sell). In today's world of 'click and buy online' consumers are used to speed. The demand for rare coins is extremely high, which makes them easy to sell if you need to. The $20 Saint-Gaudens gold coins, which were minted between 1907 and 1932, are an example of one of the favorite choices among numismatic investors, which boast high liquidity levels.
In 2019, we saw uncirculated Saint-Gaudens coins trade at an extremely narrow premium to gold bullion, as low as 8-10%. Historically, these coins typically trade at a 30-40% premium over gold bullion. Once the stock market cycle turns, this sets up the Saint-Gaudens for a massive price appreciation.
We recommend adding exposure to U.S. rare coins at the MS65 level or better. Always purchase the best coin in its category that you can afford to maximize your long-term return.
If you do own gold bullion, consider converting some of your gold into new rare coin holdings. Rare coins are poised to outperform in the new gold bull market cycle that is just beginning now.
Many on Wall Street are forecasting gold gains to the $1,600, $1,800 and even the $2,000 an ounce level in the months and years ahead. If history shows that U.S. rare coins gain twice as much as gold, investments in numismatics could easily double in 2020 and 2021 from current levels.
Want to get started or just learn more? Call Blanchard today at 1-800-880-4653 for a private and personalized portfolio consultation.
We proudly offer coins handpicked by John Albanese, who is the top numismatist and coin grader working in the rare coin market today. John has more than 35 years of experience in numismatics, and he holds the unique distinction of creating both of America’s leading independent coin-grading services. He co-founded Professional Coin Grading Service (PCGS) before launching Numismatic Guaranty Corporation (NGC), where he personally graded more than one million coins.