Q. “Why do I need rare coins in my client's portfolio?”
A. “Diversification. The majority of your product offerings are in equity or paper investments, such as stocks, bonds, mutual funds and annuities. These make up the vast bulk of your client's assets and in most economic scenarios will provide safety and growth. However, there are certain times when tangible or real assets are important to financial portfolios. One of the most time-tested methods of 'wealth insurance' has been rare coin investments. They are easy to store, easy to value, easy to transport and easy to sell. It is for these reasons that clients should have a portion of their portfolio in rare coins.”
Q. “How much of a portfolio should be in rare coin investments?”
A. “Generally 5-15% of a portfolio can be in tangibles. The typical investor usually has at least 10% of his assets in rare coins. The actual percentage that is suitable for your clients can be easily determined by a review of your client's present holdings. Rare Coins of Raleigh depends on the input of the financial planner to insure that the investment is appropriate for the client."
Q. “What are the qualities of an investment grade rare coin?”
A. “Many coins can be considered ‘investments' for a number of reasons. However, for the typical non-collector investor, these general guidelines should be used:
United States coins only.
Dated prior to 1934.
The condition or "grade" is Mint State (MS) or Proof (PF) 63 or higher (64, 65, 66 or 67).
All coins must be graded and certified.
Prices should be a function of the Certified Coin Dealer Newsletter (CCDN) and the Coin Dealer Newsletter (CDN).
The population of the coin (the number of coins that have been graded by either PCGS or NGC) is low for the series whenever possible.
Q. "Does the price of gold or silver have any effect on the price of rare coins?"
A. “For investment quality coins, the effect of bullion price movements is minimal. These coins have value due to their rarity and collector demand rather than any intrinsic metal content. For example, in the art world, the value of a Picasso is not based on how much paint, wood or canvas is used to create the work. The same is true with rare coins. An investor who buys a $20 gold piece for $25,000 is not concerned that the coin contains about an ounce of gold currently worth about $300. In lower quality coins, those that are of poor condition and easily obtained, their price is determined largely by bullion price movement. In this example, a low quality $20 gold piece that is sold for $420 has over 80% of its value based on bullion content.”
Q. “How can I keep track of how my client's rare coin investment is performing?”
A. “We will provide a written evaluation for you, at no charge, at least annually--on your request. If you need more frequent reviews, simply place a call to our offices. All the evaluations are based on the up-to-date values provided by the most current independent sources. You will obtain the value of your client's rare coin investment as easily as you would determine the value of an annuity.”
Q. “Where should my client store rare coins?”
A. “Rare coins are very easy to store. They can be stored in a home safe, or in the case of trusts, in a safe deposit box at a bank or trust company. Since the coins are in sealed cases of uniform size, they do not require much space.”
Q. “How are rare coin portfolios selected?”
A. “After the question of suitability of investment is answered, we will work with you to determine your client's investment goals, time frame and amounts to invest. Using the criteria on the selection form coupled with the input from you and your client, a portfolio will be put together. The number of coins will be dependent upon the amount invested. All the portfolios assembled by Rare Coins of Raleigh are customized for each client.”
Q. “Does my client or prospect have to be a coin collector to invest?”
A. “Investing in rare coins is entirely different than collecting. You don't have to be an actuary to invest in annuities, nor a stock analyst to invest in mutual funds. Well, you don't have to be a coin collector to invest in rare coins.”