United States rare coins fit this strategy as they represent the growth of our great nation and can take us back to many defining moments throughout our history. Such treasures have been collected since the birth of our nation and are so exclusive that coin collecting has been called “the hobby of kings”. Indeed, wealthy families have owned United States rare coins as both a source of pleasure and wealth preservation for many years; such owners include the late Dr. Jerry Buss, King Farouk of Egypt, Wayne Gretzky, and The Garrett Family.
The key to preserving wealth utilizing this strategy is holding power. This is not something you want to liquidate during economic turbulence or when the world looks scary. Rather, this is the very thing you want to hold on to as rare coins have survived and held value through recessions, depressions, natural disasters, wars, and revolutions. When you are in the financial position to be able to purchase and hold these assets you can put your family in a much stronger long-term position that is virtually resistant to short-term economic turbulence and market volatility.
United States rare coins have been collected by affluent people since the birth of our nation. These coins are pure American history- allowing the owner to hold the beauty, power, and events of our great nation's past in their hand. The scarcity of high quality examples makes finding these coins an extremely difficult challenge. This creates an environment for excitement where opportunities to purchase these items may only occur once in a lifetime. Ultimately, availability is more important than price.
For investors looking for performance the key is to purchase rarities at a fair value with the intention of taking advantage of future opportunity. The best position in a negotiation is to have something that someone else wants. That position is even stronger if the buyer cannot get the item anywhere else. The concept is based on having the ability to hold in order to maximize your return.
In addition to achieving performance by having holding power, wealthy individuals typically do not liquidate their most prized possessions during down market cycles. This creates lower volatility in the Unites States rare coin market and may enhance one's risk-return profile. Thus, including non-correlated assets in your portfolio could eliminate some of your downside risk exposure while still offering positive long-term performance.
To view the historical price performance of rare coins, download a copy
of ‘Appendix B’ from the 100 Greatest U.S. Coins book.