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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:
- 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.
- 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.
- 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.
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Call a Blanchard and Company, Inc. expert at
1-800-880-4653
for more info on the Lombra Report.
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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.
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