Rare Coin Values Soar in 2020 As Investor Interest Spikes

Rare coins have often been overlooked by investors who do not recognize the many benefits that come with this distinct tangible asset class. Those who are not well-versed in the rare coin trade may see coins more as collectibles or heirlooms than solid investment opportunities, but in 2020, all that is changing as investor interest soars.

Precious Metals and Rare Coin Values Hit All Time Highs

In the past, stock market declines have often led to a higher demand for precious metals, due to their intrinsic value and hedge against inflation. Predictably, the current state of the economy and uncertainty surrounding the stock market in 2020 has led one such increase in demand, but more so than ever before. This past August, gold bullion was traded at an historic $2,069 an ounce, an all-time high, and investment firms are predicting it to rise as high as $3,000 an ounce within the year.

Due to this increased interest in precious metals, interest in rare coins has received an enormous boost, with the Rare Coin Values Index hitting an all-time high this past summer, and experiencing its fastest growing increase in the past four years. 

Rare coin values are a combination of intrinsic value from a precious metal, combined with their collectibility value, which makes coins an incredibly unique asset, and has given them a history of strong gains. In the past 40 years, rare gold coins have returned almost double the return of gold bullion, according to an independent analysis by Penn State University and RL Associates, with coins at a return of around 10%, and gold bullion at 5.5%.

The Time to Buy is Now

In the current state of the market, very few investors than usual are reselling their coins and demand is increasing. As investors find coins they are interested in purchasing, experts are advising to buy now, as it may be many years before these coins return to the market, and all signs are pointing to coin values continuing to grow.

Those newer to investing in rare coins may be wary of spending a large chunk of money on an investment at a time of such economic uncertainty and when unemployment rates are so high. However, one of the many benefits of rare coin investments is that there are coins to fit into every budget. Choosing a quality coin is key to making it a worthwhile investment, and price-conscious investors should search for the highest quality coin they can find within their budget range. 

Additional Benefits of Investing in Rare Coins

Apart from their intrinsic value and immunity to stock market volatility, an especially important feature in 2020, rare coins have an immense amount of benefits as a tangible asset, an important addition to any diverse portfolio. For starters, as a private storage of wealth, rare coins are not reported to the IRS and enjoy no annual taxation. 

Rare coins also have extremely high liquidity levels, due to the many reputable coin grading companies that track data like coin population and market trends, and provide guides for determining coin values. Additionally, their small size and easily accessible market make them much less complicated than other tangible assets, such as real estate, and can be easily stored and protected.

The rare coin market is extremely active, with over $10 billion USD in sales annually, and reports of over 35 million investors currently in the U.S., though with interest in the coin trade skyrocketing in 2020, that number will certainly continue to rise.

Rare Coins Will Continue to Grow in Value

Experts agree that as the value of paper currency remains unstable in our current economic crisis, now is the time to purchase tangible assets. As the increase in investor interest in rare coins transforms into a long term demand, coin values will rise even higher than we’ve already seen this past year, and the future is bright for investors and collectors who take advantage of this golden opportunity in the current market.

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