Now that the stock market has completely recovered from its losses and is at new all-time highs, it's time to lock in some profits and diversify your portfolio. If you're looking for value, rare gold coins could be the answer.
According to Professor Raymond E. Lombra, the Professor of Economics at Penn State University, high-end rare gold coin investments have outperformed every asset class (stocks, treasuries, bullion, etc.) since 1970. In fact, high-end rare gold coins have gained an astounding 10,145% since 1970 (as measured by the PCGS Mint State Rare Gold Coin Index (TM)). These coins peaked in 1989 with a gain of 26,465%, and for the first time in years they are in an uptrend again.
With the weakening dollar, growing trading gaps, widening deficits, an expensive stock market, and the slow down in real estate it appears that rare gold coins may be the place to be for the next several years. Combine this with rising inflation and geopolitical concerns and you have a unique situation that could lead to a major bull market in rare coins similar to what we saw in the 1980s. During this time the Mint State Rare Gold Coin Index (TM) went from an index value of 30,000 in 1982 to 265,654 in 1989, a rise of 785% in 7 years.
Historically, bull markets in commodities run anywhere from 15 to 23 years on average. The run in gold and rare gold coins began in 2001 so they've got a long way to go. The immediate future looks bright as well, statistics from the Certified Coin Exchange show that there is a huge buy imbalance of over 20 buyers for every seller, with buy orders equaling $ 229,966,287 and sell orders equaling $ 4,795,677.
With rare coin investments you get a unique blend of collectors and investors and the supply is limited, so allocate at least 5 to 20% of your portfolio to gold and rare gold coins because it looks like a long bull run could be on the horizon.