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Rare Coin Performance vs. Other Assets
October 21, 2008
The following are percentage changes over the past year:
DOW
| -32.15%
| S&P 500
| -34.75% | Gold
| +1.26% | *PCGS 3000 Index
| +11.59% | *Proof Gold Index
| +15.49% | *Key Date and Rarities Index
| +13.74% |
Rare coins have outperformed the stock markets and gold during a year of severe economic turmoil. Investment studies have shown that rare coins of true quality and rarity, properly priced and selected, can be excellent long-term investments. Although past performance is no guarantee of future results, investment in rare coins has historically offered the opportunity for both substantial capital appreciation and asset protection during inflationary cycles and periods of economic disruption.
As the economy moves through its regular cycle - from recession to recovery to stable growth and, eventually, to inflation - it produces windfall profit opportunities for alternative assets like Rare Coins. For example, some years ago, the Chairman and Chief Executive Officer of Fidelity Investments, was one of the principal investors in a partnership that invested $348,380 in Rare U.S. Coins. The partnership was liquidated approximately 4 years later for $2,158,450.
But Rare Coins offer more than the occasional windfall profit. A study by the Chief Investment Officer for GE Private Asset Management, Inc. concluded that rare coin returns have been highly attractive over the last sixty-two years, and that even a small allocation provides a good diversification for a well-diversified portfolio.
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Copyright © 2009 Blanchard and Company, Inc.
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