One of the first things that experts in precious metals
recommend when starting out a portfolio is to diversify it and to divide it up
into three parts.
First Part:
Inexpensive Precious Metals
The philosophy is simple. Gold is not an inexpensive metal,
especially when it sits around $1700 per-ounce, however owning inexpensive gold
is recommended. Inexpensive gold might include Swiss or French Gold 20 Francs. Both
of these coins weigh .2074 and typically sell per-ounce. They sell for around
the same price as a 1oz American Gold Eagle and a Gold Canadian Maple Leaf. A
good silver option would be “junk silver bags,” which are relatively easy to
store and are highly liquid, making them a great addition to a precious metal
portfolio.
Second Part:
Semi-Numismatic Precious Metals
The next portion of your portfolio should include
semi-numismatic coins. “Semi-numismatic” are coins that are a cross between
bullion and numismatic. They are collectable but also have worth due to their
inherent gold content. A down side to these coins is they carry a pretty hefty
premium, there bullion value follows the spot price of the metal it contains.
Because semi-numismatic coins contain value in their rarity they are unaffected
by price swings when the spot goes up and down. These coins are not too rare to
where you would have to break your pocket book to purchase them.
Semi-numismatic coins make a great addition to a portfolio because they offer a
hedge against quick market turns and increase the value of your portfolio as
the market value of the precious metal increases.
Third Part:
Numismatic Precious Metals and Rare Coins
The last form of precious metal that is recommend to add to
your portfolio is rare coins. These coins provide great potential for both
investors and collectors alike. These coins can fetch a price anywhere between
$5,000 and $350,000 per-coin. Within the last five to ten years the most profit
has come from investing in rare coins. There are a number of coins that fall
into the rare coin category and rather than searching online or in magazines to
find out which coins to purchase, it is better to consult with a numismatic
expert to ensure the right purchase that is most advantageous to your personal
goals and objectives. Something to consider is that when you are starting out
with building your portfolio there is a huge difference in purchasing rare
coins for collection purposes and purchasing rare coins for the purpose of investing. This is why consulting with a professional can
be of great help.