Undervalued Gold and Silver Coins
Investing in gold and silver coins is undoubtedly a timeless and proven method of not only preserving wealth, but as a great long term investment tool. However, choosing undervalued rare and pre-1933 coins is by far the most profitable method.
Rare and pre-1933 coins hold both the current value of their metallic content and an added value based on scarcity and condition. It may be obvious why investing in rare coins is such a good idea, but what's the significance of the year 1933? For one, this was the last year before 1986 that the US Mint issued precious metals coins (except for a few short periods such as 1934-35, 1946, etc.). Second, 350 million silver dollars were melted in 1918, after the passage of the Pittman Act, and as a response to deflation during the Great Depression in 1933, President Franklin D. Roosevelt signed Executive Order 6102 authorizing the confiscation and melting of 90% of gold coins. Third, during the height of the last commodities boom (1960-1980), millions of gold and silver coins (most of which was produced prior to 1933) were melted yet again.
During the commodities market crash of fall 2008, gold and silver prices fell 32% and 67% respectively off their spring 2008 highs. However, rare and pre-1933 coins were still being sold at or near the spring 2008 highs during the worst of the market turmoil. Not only are coin prices less volatile, they also:
- generally provide a higher overall return over the same period of time;
- require no IRS reporting, and as collector's items, are not subject to confiscation;
- are very liquid and are accepted by ebay buyers, your local coin shops, larger online coin dealers, private collectors, collectibles auctions, etc.; and
- are more easily identifiable and verifiable than scrap metal, jewelry, rounds and bullion bars.
For all the aforementioned reasons and countless more, owning rare and pre-1933 coins represents one of the best ways to invest in precious metals. As precious metals prices continue their long term uptrend begun in 2001, we can expect rare and pre-1933 prices to follow. Undervalued coins--ones that are extremely rare, difficult to find, but unknown to most collectors--will provide the best return-on-investment. Our Precious Metals Investment Guide provides a detailed list of these coins, including insight as to what makes them so rare and how to purchase them for just the cost of their metallic content.