Gold And Silver Coins In Times Of Recession
June 2, 2010 by Sam Von Beehum
Filed under Retirement
There are different appearances to money nowadays. Lately the most popular form of money in the USA are credit and debit cards. But most of the world still relies on banknotes and coins. But they can also be a great business or investment because of their strong demand by collectors. There is something genuinely captivating to people about collecting coins and doing business in precious metals. However, some people think that gold is not for them. However, coin collecting is affordable, and there are coins to fit any budget. If you’re collecting diamonds or rare paintings these can fetch prices that are out of reach of most investors and prices tend to be higher. While, even a student could invest his 100 dollars into a nice collectible coin. Do you want to know why people invest in collectible coins? Nominal value can often be disregarded because collectible coins have a much stronger collectible value. I would also classify a third type of value that makes gold and silver coins a great investment – the intrinsic value of the precious metals they are made of. Collectible value of coins can differ and depends on several things like mintage and topic. Collectible coins appreciate even when the price of gold going down, which doesn’t happen very often. Even recession can’t stop popularity of collectible coins, and they have appreciated by strong 14% in the last 3 years.
Market of collectible coins is fascinating. There are a number of important benefits of unique collectible coin investments over stamps, pictures, antiques, and even pure gold bars, so let’s find out what makes coins so attractive to collectors. One of the reasons people buy coins is their close association with our history. For over 200 years, collectible coins have been symbols of American stability and pride. There are price-driven forces in the coin market that define supply and demand.
This is an overall rule. However, a coin’s value is defined in terms of a number of factors. Country of emission is very important in defining a coin’s value. Coins emitted in the USA will always be much more valuable than coins produced in Liberia. There will still be more Americans hunting after American coins thus boosting the demand. Mintage of 100 or 500 coins will make them much more valuable than coins emitted in millions. That’s why generally it should cost more. Investing in rare coins is a wise move. Coins are more expensive when they are made of gold with a touch of precious extras. Such additions make coins more desirable. Coins can be produced either independently or in series. Coins emitted in series are usually in more demand. The reason is quite simple. Not all coins in the series are in demand.
Buying second or third may give you the incentive to complete the whole series and to buy also the first one. Interesting topic will pull more people to complete the set. Universal topics are often more demanded. Rare American coins are what all collectors want to see in their possession.
Coin market is a great investment for anyone.
Learn more about Commemorative Coins today at our large online store. If you are looking to purchase rare gold coins, please visit us on the web at www.currencyvault.com.
categories: investing,gold,coins,inflation,retirement,savings,money,federal reserve
Are we in a recession yet? Hmm!
Perhaps the economist are confused about what the definition of a recession is, but it has felt like one in any people’s personal economy since the beginning of the year. Finally, the talking heads, are acknowledging that we “may” really be in one. What?
Anyway the DOW falls below 8000 for the first time in 5 years. Keep in mind that in September 2002, the index closed at 7592 which was 6 years ago. Are we headed in that direction? How fast. After that, at 7539 which was the low in August 1998, we will see lows posted that we haven’t seen in X years. Here is an iPhone screenshot of the result.
Here are a few excerpts from MSNMoney explaining the losses yesterday. The entire article written by Charlie Blaine and Elisabeth Strott can be found — HERE.
Today’s selloff reflected three forces at work:
- A sharp decline in financial stocks. That was, in part, a show of investor unhappiness that the Treasury Department has junked its plan to take over the troubled assets of a number of financial institutions.
- Increasing worries that the recession will be much worse than anyone thought, with deflation problems growing. The Federal Reserve issued new projections today showing unemployment could jump well above 7% next year. Prior forecasts had seen jobless peaking at no more than 6%. The economy is “deteriorating faster than any time since the second quarter of 1980,” former Fed governor Lyle Gramley told Bloomberg Television today. Indeed, the Fed pledged at its Oct. 28-29 meeting to take “whatever steps were necessary to support the recovery of the economy.”
Cheers, it’s not the end of the world…yet.
