New and experienced collectors can choose from a range of coins and medallions to diversify their alternative asset portfolio.
We highlight some of the benefits and advantages of accumulating coins as an alternative asset.
Everyone who enjoys collecting, cars, art, and comics will find some satisfaction in coins. Anyone who has some wealth and wants to diversify their assets, especially during the tough times like a recession, should consider collectables as a great way to mitigate the risk.
Whether these are Bullion, collectable or modern numismatics they need to be bought and acquired over time. It’s a form of saving against inflation, a rand hedge and an ideal asset consideration for wealth preservation.
Since coins are portable they can be given to your children and grandchildren or moved around the world. Coins are universal and are a real store of value. This portability and flexibility make it attractive as a hedge against currency inflation globally. There are risks to this, however safe custody storage products such as SafeGold provide peace of mind while your assets grow.
It is recommended that you only buy from dealers and auction houses who are knowledgeable and reputable in the industry because, as with art, a coin can be tampered with.
Buy when you find something or are offered something interesting that resonates with you. Don’t just buy because the price seems to be good or because the market is on fire. Most people buy high and sell low.
Genuine collectors and investors buy on a regular basis to average out their purchases and consequently don’t overcommit and end up with the wrong coins. It also depends on your particular financial position and your life cycle, that being said, securing your wealth should always be top of mind. You can buy very scarce and rare numismatic coins which can be very expensive, or more affordable modern coins which hold a longer-term view.
If you are speculating or have a short-term view you may buy different coins or perhaps you shouldn’t speculate on hard assets at all. In all cases speak to the professionals. Buy to hold, buy to keep, buy to give to your loved ones or buy for a rainy day in the future.