Tangible assets-rare coins and precious metals-play a
vital role in the properly diversified investment portfolio simply because they
tend to balance the movements in the financial markets. Experts recommend that investors consider rare coins,
gold, and platinum to provide security, stability, diversification, and capital
appreciation.
Gold: The Portfolio Hedge
For centuries gold has been treasured for its ornamental appeal and economic value.
Emperors, kings, sultans, and sheiks coveted gold as the one secure asset in an
insecure world. As empires fell and civilizations declined, gold proved to be
the best guardian of assets-the universally recognized store of value.
Gold remains as one of the few "hedges" today. In modern times investors
have held gold as protection against high inflation, a weak dollar, stock and
bond market volatility, bank failures, Third World loan defaults, and world tensions. Gold is such a valuable hedge
because the very forces that weaken paper investments often cause gold to rise.
Is Gold Right for You?
Financial advisers
often recommend that investors keep a portion of their assets in gold. Gold is
right for you if. ..
· You have substantial stock and bond holdings and want
to protect them, realizing that when stock and bond prices fall, gold generally
increases in value.
· You want an investment that has historically provided
protection against economic and political uncertainty.
· You want an investment that can
provide a hedge against a falling dollar.
· You are seeking a store of value for
inflationary times.
· You are a sophisticated investor looking for an
investment that historically has performed well when many other investments are
doing poorly.
Diversify Your Tangible Asset Portfolio
Experts also recommend that
investors hold gold, rare coins, and platinum. Why? Because each of these
categories offers unique benefits and because each responds differently to the
different phases of the economic cycle that affects the investment markets.
Rare U. S. Coins
Rare
U.S. coins are perhaps the one investment area that
combines the beauty and historical significance of fine art with the liquidity
of a nationwide, electronic quotation system. Rare coins offer investors a
unique combination of seven important benefits:
·Top Investment Performance: Coin investors and
collectors have enjoyed outstanding longterm
monetary rewards from their holdings.
·Diversification: Independent research has shown that,
when combined with a typical portfolio of stocks, bonds, and cash, tangible
assets like rare coins can both reduce risk and increase the return from the
overall portfolio.
·Liquidity: Rare U.S. coins are the world's most liquid collectible. Coins
independently certified by the Professional Coin Grading Service (PCGS) and
Numismatic Guaranty Corporation (NGC) trade "sight-unseen" on a
nationwide electronic exchange.
·Privacy: Rare U.S. coins are an ideal investment
for those who do not care to let the rest of the world know what they own.
·Asset Protection and Wealth Preservation: Rare gold
coins are not covered by existing federal laws that permit the president of the
United
States
to recall or seize privately owned gold in times of national emergency.
·Portability: Rare coins allow investors to concentrate
large amounts of wealth in a small package. Because they are portable and
private, rare coins are an ideal medium for passing on wealth from generation
to generation.
·Intrinsic Value: Rare coins have real, tangible value
you can feel each time you hold one in your hand.
·Affordability: Compared with other tangible assets,
like real estate, or other collectibles, like Old Masters paintings, rare U.S. coins are extremely affordable. Most Precious Medal
buyers begin their portfolios or collections with just a few thousand dollars.
·Historically Significant Beauty: Rare U.S. coins are uniquely American investments, created by
artisans as long as 200 years ago for use as the backbone of daily commerce in
our young nation.
Platinum: The "Most
Precious" Precious Metal
Platinum is the rarest of the precious
metals-20 times rarer than gold and 125 times rarer than silver.
And, although it
is the only precious metal to ever have traded at over $1,000 per ounce,
platinum is much more than a precious metal. It is also one of the most
essential industrial commodities in the world.
This
is especially true with regard to the heavy use of platinum in pollution
control devices. Platinum is the key element in the global war against
pollution; fully 1/3 of all newly mined platinum is employed in this way. With clean air standards
tightening around the world, demand for platinum continues to grow.
Platinum's
unique combination of high utility and extreme scarcity adds up to real
investment potential in the years ahead. Therefore, it is essential in the
properly diversified tangible asset portfolio.
by John H. Madison.:
Precious Medals Analyst