Additional Posts

Gold bullion and rare coins are wealth insurance — and a whole lot more

“Gold is wealth insurance — with a bonus,” former U.S. Mint Director Philip N. Diehl writes in his personal blog.

“Unlike other forms of insurance, gold not only holds at least a major portion of its value, it can appreciate in value. If you bought gold as wealth insurance 40 years ago, the value of your ‘policy’ today would be worth 12 times what you paid for it. If you bought gold as wealth insurance in 2001, today, your policy would be worth five times what you paid for it, even after the price decline off gold’s 2011 peak.

“Except for one three-year period over the last 50 years, anyone who bought and held gold is in a profit position today. Said another way, if you bought gold in any of 47 out of the past 50 years, you’ve made money. Your gold insurance is worth more than you paid for it — probably much more.”

If gold is wealth insurance with added punching power, then rare gold coins and that and more, packing an extra-powerful punch, as Penn State economist Raymond Lombra makes clear in his landmark Lombra Report, his study of coin values over a 35-year period.

His conclusion: High-end, high-quality rare gold coins are the place to be, even outperforming stocks. Over the best three-year period, Lombra found that, far and away, rare gold was the place to be. High-end rare gold outperformed all other assets classes during their best three years. Narrowing down the data to the best one-year performance, rare gold coins produced staggering results against the stock market and other investments. Nothing else came close.

The results continue to suggest that over the longer run, including rare U.S. coins within an existing portfolio could improve investment performance to an astounding degree. When seeking true diversification, be sure to include the wealth insurance of gold bullion. Then take it further with the powerful profit-generating potential of numismatic gold coins.