Rare Gold Coins Retain Value in Correction

One of the characteristics that differentiate rare gold coins from gold coins and gold bullion is that the numismatic value remains in periods of correction. During the past four years, when the market has been such that gold coins must be valued based on the current spot price of gold in the market, the added values of rare gold and numismatic coins may have been overlooked.

There are many benefits to rare gold coins and to numismatic coins. In the Great Depression of the 1930’s, gold was confiscated by the United States government. Essentially, upon threat of imprisonment, the government took the gold from the citizenry, compensating them at $20 per troy ounce, then revalued it to $35 per troy ounce once they had it.

Numismatic gold cannot be confiscated. It has historical value in addition to its monetary value that distinguishes it as an investment and as a holding in the marketplace. Rare gold possesses a quality in addition to its monetary value. Historical value is an appreciable asset.

In addition, during periods of market correction, as the one we are currently witnessing, rare gold coins retain their historical value while gold as a metal is losing marketplace value. During market correction periods, gold moves in a temporary motion adverse the market direction. Right now we’re in a protracted bull market, which is good for gold and good for gold investors. However, for a healthy market, there needs to be the occasional moves to the downside, as we’re now witnessing.

We will again see gold rise in accordance with a fundamentally strong bull market, but for the moment a correction is in full swing and will continue for at least a few weeks. During this time, investors will be buying on the dip, as they should, and continuing to increase their positions in gold to maximize their profits in such a way that they gain the most possible from the current period.

The historical value of numismatic coins insulates them from these kinds of moves to the downside that can affect other types of gold so dramatically. Rare gold coins have characteristics that protect and insulate them from market volatilities as well as market corrections.

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