The Lombra Factor: Rare Gold Outperforms

Professor Ray Lombra, of the Economics Department at Penn State University, has just completed another evaluation of data on the performance of rare American coins over the past 25 years. Previously, Professor Lombra had conducted a similar analysis for the Joint Committee on Taxation of the U.S. House and Senate.

In this updated report, Professor Lombra once again has found that rare gold coin investments win the day over the other asset classes (stocks, treasuries, bullion, etc.). Professor Lombra’s findings document that rare gold coins are a very good long term investment, comparable to financial assets such as stocks and bonds.

Specifically, the data indicates:

1. Over a 25 year period, high-end rare gold coins are the place to be. It is quality that counts. Always choose quality rare coins over a truck full of lesser metals. Rarity breeds success in this market. High-end rare gold coins outperformed stocks over the period by a few percentage points and outpaced everything else in the process.
2. Over the best three-year period, Professor Lombra found that, far and away, rare gold was the place to be. And again, high-end rare gold outperformed all other assets classes.
3. The best one-year performance vehicle data showed staggering results for rare coins. Nothing else came close.

Why is this information so critical now?

The dollar is weakening, deficits are widening, trading gaps are getting bigger, the forecasts for equities over the next decade is less than dazzling, and the real estate bubble may be coming to an end. Inflation is on the way. Right now we are about 18 months into what could prove to be the strongest bull market for gold and rarities on record. We have, in all likelihood, years of growth in these markets. Fueled by inflation and all the other factors listed above, we could be in for some very exciting times.

In strategizing for such a time, it becomes prudent to develop a game plan based upon solid information. Professor Lombra’s data is solid and the findings are very clear: allocate toward high-end rare coins. Blue-chip rare gold is the place to park your dollars right now. Look to Proof Gold, Early Gold, Early Silver, Branch Mint Gold, High Reliefs, and World-Class Rarities. It’s a great strategy at the right time, and the research confirms it. Risk to reward ratios are better now than any time in the last 20 years.

Call a Blanchard and Company, Inc. expert at 1-866-827-4311 for more info on the Lombra Report.

Raymond E. Lombra, Ph. D.

Professor of Economics and Dean for Research, Graduate Studies and College Advancement at Penn State University, has authored, co-authored and contributed to numerous economic and financial books, publications and periodicals. Professor Lombra is a consultant to the House Banking Committee of the U.S. Congress, the Federal Reserve System, the Congressional Budget Office, the Joint Economic Committee, Prudential Bache, Morgan-Stanley Dean Witter, the International Monetary Fund and the U.S. Treasury. His many honors and awards include election to Who’s Who in Economics.