The Investment Performance of Rare U.S. Coins

For years, Blanchard has partnered with Dr. Raymond Lombra, Professor of Economics at Penn State University, to extend his research on the long-term performance of gold and rare coins, both relative to each other and to other typical assets like stocks, bonds, and treasury bills found in most portfolios.

Assuming at least a one-year holding period, Lombra evaluates risk and return, volatility, and market timing and fluctuations across major asset classes.

The full report can be found here.

Key Takeaways

The analysis centers on long-term ownership rather than short-term speculation. Over the long term, trying to time the market is challenging, even for sophisticated investors. Rare coins and gold illustrate why long-term holding is key.

Tangible assets do not replace equities in your portfolio. Rather, the data demonstrates that rare coins and gold have delivered competitive long-term returns when evaluated alongside traditional financial assets.

Rare coins’ best years exceeded 100% returns, far outpacing other assets. While volatility was higher than bonds or T-bills, the majority of years were positive, rewarding patient, long-term investors.

For long-term investors, coins and gold offer opportunities to enhance returns while complementing traditional holdings.

Powerful Inflation Hedge

Investors must also consider how assets perform relative to inflation, which affects purchasing power over time. Rare coins and gold demonstrate exceptional performance in this regard.

Rare coins are the strongest historical hedge against inflation, significantly outperforming gold, stocks, and bonds. Their high positive correlation means that as inflation rises, rare coin values tend to increase, helping preserve purchasing power over time.

The Bottom Line

Rare coins and gold are more than collectibles. They are essential portfolio assets, offering growth, protection, and resilience in today’s uncertain markets. For a full, detailed analysis of their long-term performance, risk, and inflation-hedging power, you can read the complete Lombra report here

Read the full report here.