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Investing in rare coins in the USA

Updated on February 4, 2016

In the current economic climate, many are worried about the long term future of their financial investments. Even those that have invested over the years in their pension are not even guaranteed that the money that they have initially paid in will pay out more or even break even in the years to come.

In the current economic climate, many are worried about the long term future of their financial investments. Even those that have invested over the years in their pension are not even guaranteed that the money that they have initially paid in will pay out more or even break even in the years to come.

How can you safeguard your future?

There are various ways in which you are able to invest your money to ensure that in the years to come you will have a money as a nest egg to fall back on. One such way is investing in classic cars. However, this in itself can pose some problems as it can be tough to predict which cars will be future classics. Some are easily distinguishable as such however these can (when new) cost several hundreds of thousands of dollars so it is not an initial easy investment.

It is possible to invest in gold and platinum as a way to create a small nest egg for the future. In the last few years, the price of gold has steadily dropped to the stage that it is now a lot more affordable for many to invest in.

The only problem that this possesses is that since it has dropped by a significant amount compared to what it was previously at, this might put some off of investing. This is due to the fact that it cannot be guaranteed as to when the price of gold will start to rise again and it is more suited to those that have perhaps just started out in their careers as a form of investment.

This is due to the fact that those that are nearing retirement may sink their money into it and then they cannot guarantee the price will rise in time for them leaving work. If this is being used as a way to bump up the money they get from a pension, it may not suffice and thus they may need to carry on working for longer.

Investing in rare coins

One new and exciting area in which you could invest your money in would be in the rare coin market. In the USA, there are many that are opting to invest their money this way than in stocks and shares.

The reasons for this are numerous. Once such factor is that in the case of stocks and shares, it is the case that year on year when you receive your dividends, you are liable to declare all of this to the tax man so that he is able to extract his pound of flesh. However, in the case of rare coins regardless of how long you hold them for, you are only liable to pay any tax on the sale of them at the point in which you actually sell them.

Further, in the case of stocks and shares, these can be extremely volatile. It could be the case that your entire portfolio in a company could be wiped out overnight should the company undergo a major takeover or it simply enters into bankruptcy at which point you have lost everything.

In comparison, rare coins will always retain their value due to the limited number that are in circulation, and due to this they will always go up in value over time. Whilst it is unlikely that it will be a massive increase overnight, within five years many have reported that they have seen a doubling in the initial investment that they have made on the rare coins.

Where to buy rare coins?

Due to the exciting prospect of investing in rare coins, over the years there has been an increase in the bricks and mortar shops that will allow you to buy and sell your rare coins. However, due to the fact that they are indeed bricks and mortar, this can ramp up the price of you buying a coin, and can also mean that you might not get the best sale value as well.

This is due to the fact that a bricks and mortar store will need to pay rent for the property, as well as having a shopfront so that people will be able to come in. Further, since it will most likely be on a strip mall, it means that they will have to pay higher insurance rates to protect from any robberies that may occur due to the lucrative stock that they hold.

For these very reasons, many now choose to buy rare coins online. By doing so, it is usually cheaper which is great for an investment such as this since you’ll already be spending a significant amount of money. Also, it also gives the buyer a degree of security since they are getting the items delivered directly to their door rather than having to travel home after buying these coins from a store.

It is not uncommon for professional thieves to wait for buyers of rare coins to wait to unsuspecting robbers in an attempt to steal their new investment. By getting insured delivery online direct to your door, this potential problem is eliminated.

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