Rare Coins & Precious Metals
Questions & Answers
Read Carefully & Consult More Than One Source Before
Deciding What Best Suits Your Needs
This page contains entries which can save you both time and money. These observations will also save you a great deal of aggravation and make you a better informed investor if in the beginning you understand the precious metal and rare coin markets are highly random and no one not even GoldDealer.com knows what the future might hold. So take your time and read Rare Coins & Precious Metals – Questions and Answers and learn about reporting requirements, in and out of state sales tax, precious metal and rare coin diversification, collection appraisals, selling precious metals or rare coins through the mail, risk disclosure and buy/sell spreads.
I include various approaches to investing but actual choices and distribution are your responsibility so consider carefully before instructing us as to what you want to buy or sell. Why? Because our sales representatives do not offer legal, investment or tax advice.
Do not buy or sell precious metals or rare coins unless you understand and take full responsibility for your actions.
Investment in precious metals and rare coins involves a high degree of risk including possible loss of principal; these markets are extremely volatile. They can also change dramatically when closed if an unforeseen “after market” develops. Because of these and other factors the precious metals or rare coins may not be suitable for all individuals. Do not proceed unless you fully understand the risks and rewards associated with this investment class. If you have questions before deciding please e-mail Ask An Expert.
The best approach is to investigate all 5 asset classes and build a balanced portfolio which best suits your needs. This approach is the cornerstone of diversification and is recommended. Let’s say you want to invest $25,000 and are wondering how to proceed? You might want to consider placing $5000 in gold bullion, $5000 in silver bullion, $5000 in platinum bullion, $5000 in semi-numismatic coins and $5000 in PCGS graded rare coins. You may decide that silver is not for you and move that $5000 allocation into gold bullion but the idea is to remain diversified.
This plan is based on the theory that over time, the dollar will lose value and hard assets will move higher because of this devaluation. And after you have the basics in place, the secret behind such planning is patience. All investors must plan for the long term and consider possible short term profits a windfall. Why? Because history has shown that years, perhaps even decades, may be necessary to make hard asset portfolios profitable. So the diversified investment theory is based on the systematic and long-term buying of these 5 different areas. As you learn more you will find all five related areas react differently to world events and have different supply/demand characteristics. The percentage of dollar allotment you devote to any area is arrived at by matching your specific objectives to your temperament. If you are a short-term player and want a fast in and out approach you should have a greater percentage of your money in bullion coins and bars as commissions are the smallest and replacement is easy. If you’re patient and are looking for profits based on past price history your selections will include high grade PCGS certified rare coins but the difference between the buy and sell on this asset class is larger so short term trading must be avoided. There is no guarantee that any combination will produce a profit and you could lose money if you choose the wrong combination but the idea is to hold these assets as insurance against the uncertain future of paper money.