How to Build the Ideal Gold and Silver Coin Portfolio
How to Build the Ideal Gold and Silver Coin Portfolio
One of the toughest questions investors ask when building a coin portfolio is, "What kind of gold and silver coins should I invest in?" The best answer to this question depends on your investment timeframe. For how long are you planning to invest? Here is a basic overview of short, medium, and long term coin portfolios.
Short Term (Under 1 Year) — Invest in bullion coins that closely follow gold and silver spot prices, with very small premiums. These coins have immediate liquidity and their prices are easy to track based on current precious metal spot prices. Returns are generally less than those of coins we recommend for the medium or long term, as expected from a short-term investment. Nevertheless, these coins offer protection against loss of purchasing power of the US dollar.
Medium Term (1-3 Years) — To maximize return over one to three years, invest in coins usually dated pre-1934.While they are no longer in production, adequate supplies of these coins are available. They trade for slightly higher premiums to gold and silver spot prices than those we recommend for short term investments. They offer additional privacy benefits not available with bullion coins. Due to high demand, they also offer excellent liquidity.
Long Term (3+ Years) — For maximum return on investment beyond three years, we recommend scarcer coins. These coins frequently have very low populations, are in high demand, and in limited supply. This combination makes them solid investments and recent auctions have shown them to offer maximum appreciation. Holding low-population coins for more than three years tends to increase their scarcity (as other collectors and investors hold them off the market). This increases their liquidity and value, which can dramatically increase your capital return.
The ideal coin portfolio will be diversified and contain a combination of the three categories. The percentage of each should be based on your individual goals, needs, and preferences. Short term coins are excellent for accessing quick cash. Medium to long term coins are suitable for goals such as savings, retirement, and inheritance.
Bullion Plus Coins Recommended for Short Term and Medium Term Investors
In order to classify a gold or silver coin as a Bullion Plus investment, we look for coins that are no longer produced but retain an adequate supply. These coins carry a low premium over the gold and silver value, and usually have additional privacy and reporting benefits over more modem, still-in-production bullion coins. Bullion Plus coins are primarily priced on their precious metal content and a small premium. During times of economic turmoil, demand for these coins tends to spike, resulting in multiplied premium increases. In many cases this gives these coins an additional 20-30% value over their normal return, making them ideal for the short and medium tems investor. Please contact us for more information about these benefits.
All of our Bullion Plus coins offer:
- Low Premiums
- Immediate Liquidity
- Pre-1934 Privacy Benefits
AU-BU $20 LIBERTY | BRITISH SOVEREIGNS | ||
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AU-BU $20 SAINTS | SWISS HELVETIAS | ||
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PCGS/NGC certified MS63 $20 SAINTS | FRENCH ROOSTERS | ||
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BU MORGAN & PEACE DOLLARS | PCGS/NGC certified MS64-MS67 MORGAN and PEACE DOLLARS | ||
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Investment Grade Coins
Recommended for Medium Term and Long Term Investors
Investment Grade coins start around $3,000 for Gold and $1,000 for Silver. Collector and investor demand for these fairly low-population coins gives them a value, commonly referred to as numismatic value, that far exceeds the value of their gold or silver content. As a result, changes in precious metal values have little to no effect on the prices of these coins. Investment coins can produce maximum returns for investors willing to hold on to them for a few years. This holding period enhances the limited availability of these coins and allows them to appreciate as their more expensive siblings, the Ultra Rarities, increase in value (explained below), thus making them even more desirable. The more desirable they become, the more their value increases. These Investment coins can typically show a 10-30% year-over-year return. To find the best of these Investment coins, Stuppler & Company created CoinStats. CoinStats is a quarterly statistical publication that identifies coins with the highest potential for price growth, based on detailed analyses of each coin’s population, value differential, and market capitalization. CoinStats recommendations are a valuable tool that enables numismatic collectors and investors to maximize their return when selecting investment coins. CoinStats is available free to our clients to help them find undervalued coins in a particular series within their price range. Please contact us for details and to receive a free issue of CoinStats in the series of your choice.
CoinStats Series of Investment Grade Coins
SAINTS LIBS MORGANS PEACE WALKERS
AUCTION HISTORIES OF PREVIOUSLY RECOMMENDED COINSTATS COINS
1921-D Morgan PCGS MS67 | 1909-S Saint Gaudens NGC MS66 |
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Ultra Rare Coins
Recommended for Long Term Investors
Ultra Rare coins are usually valued at $25,000 and above. Due to their higher values and extremely low populations (in many cases only 1-5 coins available), Ultra Rarities are the epitome of excellence to savvy investors and collectors. Investors and collectors looking to build the fullest collections are always on the hunt for these rare pieces. To clarify, let’s say only 3 coins exist in a particular series in a high grade and 1 of the 3 becomes available at auction for the first time in several years. Even if only two people need this Ultra Rarity for their collections it will almost certainly bring in a record breaking price at auction due to the incredible scarcity. Similarly, when a Monet or Picasso painting becomes available, it almost always tops its prior multi-million dollar sales price. Due to the extremely low availability of Ultra Rarities, they can yield maximum returns in weak and strong economies.
AUCTION HISTORIES OF PREVIOUSLY RECOMMENDED ULTRA RARE COINS
1890-CC Morgan Silver Dollar | 1901-0 Morgan Dollar PCGS MS67 |
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Modern Gold and Silver Bullion Coins
Recommended for Short Term Investors
Gold and silver bullion coins are ideal for investors who need instant liquidity. Modem Bullion coins are produced in large quantities; their value depends primarily upon their precious metal content. As a result they carry a very small premium over precious metal spot prices and offer excellent immediate liquidity.
Here are the 5 most popular
Gold and Silver Bullion Coins
in order of popularity
1) US 1oz Gold Eagle | 1) US 1oz Silver Eagle | ||
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2) Canadian 1oz Gold Maple Leaf | 2) .999 Silver Trade Units | ||
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3) US 1oz Gold Buffalos | 3) U.S. Peace and Morgan Circulated Silver Dollars | ||
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4) 1oz South African Krugerrands | 4) 90% Pre-1965 US Silver Dimes, Quarters, and Half Dollars | ||
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5) 1oz Chinese Pandas | 5) Canadian 1oz .999 Silver Maple Leafs | ||
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