Using Coins To Add Diversity and Potential To a Savings Portfolio


Because many people are hesitant to trust their savings to maintain its value – let alone grow – in bank accounts, many savvy investors are choosing to convert their fiat money into hard assets.  Owning items that have real intrinsic value is the key to retaining wealth and protecting it from being devalued, inflation, and other economic happenings that are so common these days.

Precious metals are the immediate choice for people who want to diversify their financial portfolio.  Gold and silver are not just hard assets; they are also a real global currency that holds its worth anywhere in the world.  There is no doubt that precious metals will always have a place in society.  People crave them for jewelry, they are used in many fields as an industrial metal, and their scarcity and beauty make them some of the most desirable objects on this planet.

When you buy gold, you are really just cashing in your coupons for the real thing.  Gold is real currency.  It can be liquidated at any time, it is divisible, portable, and it can store a large amount of value in a very small package.  It is universally accepted and it does not fall victim to socioeconomic occurrences.  Gold and silver can even survive the harshest economic crises.

Another time-tested but also up and coming investment option is rare coins.  Many investors have recently realized how much money there is to be made in numismatics.  The neat thing about numismatic coins is the fact that they offer many of the same benefits that precious metals do, as most old coins are comprised of gold or silver.  Yet, they are also highly collectable, which gives them even more value.

Although investing in rare coins can be more risky than precious metal bullion, a failed rare coin endeavor can only be blamed on the buyer.  If an investor is not taking the time to learn about the piece that they are buying, the dealer that they are buying it from, and what they can expect from this coin, then they should not be surprised when things don’t turn out quite as they had planned.

Successfully investing in rare coins requires that the buyer A) knows what to look for, B) knows where to buy it, and C) knows what to do with it after.  Just buying a random old coin from an auction site and then selling it a year later having grown tired of it is probably not going to yield desirable results!  However, buying a quality rare coin from a trusted dealer, and selling when the market is right can generate enormous profit.  It is all in the approach.

Because using coins to add diversity and potential to a savings portfolio involves such a wide range of options, it is highly recommended that novice investors speak to an expert in the field before making any purchases.  2013 is going to be a big year for coin collectors and there is no reason why you can’t be a part of it.  Now is the time to invest while the prices are relatively low and set to rise!