Investing In Rare Coins: Wisely Invest in America’s Treasures

Ever since the bulls started running in the precious metals market over a decade ago, the interest in rare gold and silver coin investment has increased significantly, causing rising prices and new investment opportunities. While some precious metals investors prefer bullion or ETF’s, many others prefer to partake in gold and silver coin investment, both as an investment instrument and a rewarding pastime. By collecting rare gold and silver coins, investors are able to make substantial profits and act as stewards of history at the same time. Increasingly, rare gold and silver coin investors are turning Rare Coins to confidently make their rare coin investments.

Numismatics Spreading Worldwide

Faced with soaring debt levels and troubling economies in the U.S. and across Europe, central banks have been stockpiling sovereign bonds in an attempt to avert the ruin of the global financial system. With increased money supply leading to massive inflation, precious metal prices have risen sharply, while paper money is losing its buying power.

Thanks to social programs, military expenditures, the government’s reliance on sovereign bonds, and aging global populations, Western governments have continued to increase spending year after year, leading to increasing debt levels. Thanks to these growing deficits, the practice of printing paper money to increase the money supply needed to cover these growing expenses will only increase as well. This gloomy future global economic forecast has encouraged investors to seek the safe haven investments of gold and silver, because every investor knows that they experience massive gains and outperform paper investments during inflationary periods. Gold and silver coins, which have been minted since the reign of the Egyptians thousands of years ago, have attracted investor interest for their historical and monetary value.

The History of Gold and Silver Coins

Gold and silver has been uses as currency for thousands of years primarily because of their rarity, tangibility, flexibility, and divisibility. It was only natural that coins, which have historically been a common form of exchange, began being minted in gold and silver with standardized weights and compositions. Other precious metals, such as bronze and copper, were also produced for smaller transactions due to their comparably smaller value.

In more recent years, gold and silver coins have been replaced by the minting of coins comprised of less valuable base metals. Today, gold and silver coins are minted primarily for collectability purposes, rather than being used as a form of currency. However, due to the ceaseless practice of money printing by the central banks of the world, a large majority of economists believe gold and silver coins should once again be minted for use as currency in order to stave off inflation and once again add tangible value to the world’s currencies.

Early U.S. Gold Coins

Until the early-20th century, gold coins of various denominations were produced by the U.S. Mint. As one would imagine, the denomination and value of these coins increased throughout this time period. Between 1849 and 1889, three versions of small $1 gold coins were regularly minted. Also during the 19th century, Liberty Eagles with values of $2.50, $5, and $10 were also minted. These coins were commonly known as Quarter Eagles, Half Eagles, and Eagles, and they were commonly used for a variety of larger transactions, such as land purchases. The Double Eagle, with a value of $20, was also produced from the end of the 19th century until 1907. These early American “Eagles” are of particular interest for rare coin investors for their modern collector value. Relative to their melt value, these coins fetch a much higher premium.

After 1907, new Eagle coins were produced by the U.S. Mint until 1933. Similar to the earlier Eagles, these coins also came in denominations of $2.50, $5, and $10, and they depicted an Eagle on one side and a Native American on the other. The U.S. Mint also began producing the Double Eagle once again, depicting an Eagle on one side and Lady Liberty on the other. Since the mid-1980s, the U.S. Mint has been printing 100 percent gold bullion coins, but these coins fetch a lower premium in relation to earlier coins, making them a popular investment instrument for gold and silver bullion investors.

Early Silver Dollars

For centuries, a standardized silver coin called the “thaler” circulated throughout Europe. During colonial America, the Spanish dollar was the most popular form of currency. Due to their widespread use and recognition throughout the world, these coins provided the inspiration for the first American silver dollars, which were minted in numerous varieties from 1795 to 1839. In the period following, from 1840 to 1866, the Seated Liberty dollar was widely produced. Due to their rarity and historical value, both Seated Liberty dollars and early-American silver dollars fetch a much higher premium than modern silver dollars.

Morgan Silver Dollars

Whether they are coin collectors or not, most people have heard of Morgan silver dollars. These popular coins were produced by the U.S. Mint from 1878 to 1904, and they were minted some time later for one year only in 1921. Featuring an open-winged eagle holding arrows in its talons on one side and Lady Liberty on the other, each Morgan silver dollar is comprised of approximately three-quarters of an ounce of silver. Due to the widespread use of paper money by this time in American society, these coins were not circulated much. Other than being used throughout the expansion into the American West, they were held as collector items by the majority of Americans.

Nearly 150 years after they were first minted, Morgan dollars are extremely popular amongst American coin collectors. Their popularity can largely be attributed to their limited circulation and pristine condition. However, even with the recent rise in silver prices, they can still be purchased at a reasonable price, making them a choice investment vehicle for silver bulls.

Peace Silver Dollars

Minted for eight years following World War I, Peace dollars were designed and minted in an effort to promote world peace. Identical in size to the Morgan dollar, the Peace dollar features a close-winged American bald eagle with the word “peace” on one side and Lady Liberty on the other. Like the Morgan dollar, the Peace dollar also contains approximately three-quarters of an ounce of silver. Although there were less Peace dollars minted than Morgan dollars, they are not nearly as popular. This has led many rare coin investors and collectors to believe that they are undervalued, making them an excellent investment.

While all of these coins represent the most popular and valuable American gold and silver coins in the rare coin marketplace, it is important to note that prior to 1965, half-dollars, quarters, and dimes produced by the U.S. Mint all had a composition of 90 percent silver. In today’s silver market, these coins are worth far more than their meager face value.

The Future of Rare Gold and Silver Coin Investment

Due to the bleak future global economic outlook and gold and silver’s historical tendency to rise in value during such times, most economists and investors agree that gold and silver prices will continue rising for the foreseeable future. This provides rare gold and silver coin investors with the ability to realize impressive gains in the near future. Anyone looking to make wise, recession-proof investments and partake in a fun hobby should consider rare coin investing today, and do their part in preserving history and expanding their wealth.

Investing In Rare Coins: Wisely Invest in America’s Treasures
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