US gold and rare coins can be a solid addition to your investment portfolio. Whether you're looking to take advantage of market trends or you're looking to add a novel hobby to your investment strategy, here are some tried-and-true tips for getting maximum value for your gold US coins and other rare coins.
Be the First or the Last
The key to buying any type of investment commodity is timing. Anticipating trends rather than reacting to them should always be your goal.
Rare Coins: rare coins are niche products. The volatility in the rare coin market will invariably be influenced, however, by overall precious metal prices. You can better anticipate the price functions of a rare coin by looking at overall precious metal trends. For instance, if you have or are considering buying a rare 1813 silver dollar, you should compare the market valuation to the overall trends in silver prices. Thus, if the price of silver increases by 5.4% in a week but the 1813 silver dollar's value only increases by 3.1%, you might take advantage of a softer market and buy it. However, if you own that 1813 silver dollar, you'll want to hold onto it until it's value outpaces that of silver.
US Gold Coin: minted gold coins have been minted by the US Treasury since 1792. When you're considering purchasing US gold coins, you may want to diversify your purchases. This diversification should reflect your investment needs. For instance, if you want to take a lower risk strategy, you might stick to buying mostly standard US gold coins with a few commemorative or rare coins thrown into the mix. However, if you're willing to take more risks, you can prioritize your investment dollars by focusing more on rare or commemorative US gold coins. Most numismatic experts advocate diversity and watching the precious metals market frequently.
Leverage Precious Metal Gaps
The price of precious metals can be notoriously mercurial. You can take advantage is this instability by leveraging precious metal gaps.
Silver to Gold: silver and gold are the most common precious metals to leverage. When trying to leverage the gap in value between the two metals, it's important to be prudent. Thus, if the price of gold increases 4 % more than silver over a weekend, it's probably not a great idea to swap all of your silver commodities for gold. Rather, you might want to invest the progress made by gold proportionally. For instance, if you have $1700 worth of gold and $1000 worth of silver and the price of gold increases by 4% (+$68), you might want to buy about 4% more of silver. By hedging your investment strategy, you can capitalize on gains with far less risk. After all, the price of precious metals like gold and silver will always hold value.
Platinum to Gold: one of the most nuanced ways to leverage divergent precious metals for investment purposes is to leverage platinum and gold. Because platinum is used to create a variety of metal alloys, its price is often a bellwether for gold prices. Thus, if gold prices increase, platinum prices will also likely go up. Sometimes gold prices will lag behind platinum or platinum prices will lag behind gold, but you can use the rising price of one to help you evaluate a gold or platinum coin you might be considering. Many traders find that buying raw gold or platinum to be another way to stabilize the niche bubbles that can sometimes plague rare coin collectibles. For instance, if a commemorative coin like a WWII coin comes up for sale around a big WWII anniversary, the coin's value is likely to spike.
To learn more, contact a supplier that carries gold US coins.