The current state of global economics is frightening. Many nations are cranking out paper currency at an astounding rate to pay off national debts. Experts are becoming increasingly concerned with the potential for hyper inflation, and average people are worried about their savings and investments plummeting in value. What are savvy investors doing to protect their fortunes in these harsh economic times? Many are placing their energies into building a coin collection. These days, a coin collection is more than just a hobby. It is a historically sound way to store and protect wealth.
Precious metal investing provides investors with a method for owning a tangible asset that performs well in poor economic times. One of the easiest ways to own precious metals is through gold and silver coins. Coins provide an easy way to transport, store and calculate the value of precious metals. Having a coin collection allows investors to take advantage of the benefits as well as own precious metals in a form that is easy to buy and sell.
Many coins are bought as bullion coins. Several different nations mint bullion coins and guarantee their weight and purity. The U.S. American Eagles, the Canadian Maple Leaf, and South African Krugerrand are three examples of popular bullion coins. The national standards that each of these bullion coins must meet make them widely accepted and sought after for a means of storing wealth, making them a welcome addition to any coin collection.
Many collectable coins are the target for an investor’s coin collection. These coins provide the many benefits of owning precious metals and also add additional value. Collectible coins are typically rarer and hold historical value, which often increases the coins' value exponentially above the price of the metal contained within. Coins such as the 1933 Untied States Golden Double Eagle have sold for several million dollars. The rarity and historical significance of the coin were the driving factors of the high auction sell.
As precious metals increase in demand, their supply remains finite. Fiat currencies such as the U.S. dollar have opposite characteristics. The increasing supply of paper currencies constantly drive down the value of the money and increase the cost of goods and services. Instead of watching retirement savings and investments slowly erode with inflated fiat currencies, investors can start their own coin collection and acquire a sound means to protect their wealth holdings.