Diversifying Your Investment Portfolio

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.