Does it seem like all you ever hear about anymore is the market for precious metals and rare coins? Although you may be completely at a loss for why people have taken an interest in these seemingly “ancient” and “outdated” methods of storing and accruing wealth, there are very compelling reasons behind the interest in rare coins.
While the rich history of coins may make them seem to some like a thing of the past, it is actually a testament to their staying power and efficacy as a means of investment. Over the years, precious metals and rare coins have proven themselves to be the only truly safe and profitable means of investing. It is only in the past century that investing in the inflated bubbles of the stock market and real estate market has become popular; both of these methods of investing are byproducts of paper money. While any savvy investor can tell you that paper inevitably returns to an intrinsic value of zero, what some of them fail to realize is that stocks and real estate are actually products of paper money, plummeting back to this intrinsic value of zero when inflation hits. It is because of the general failure to understand this concept that so many otherwise intelligent and successful investors were hit so drastically and devastatingly in 2008.
If you were told that you could protect yourself from such financial crashes in the future and actually profit during recession, would you take them up on it? The resounding answer to this question is always “yes”. But how would you go about doing that? Some might say, “That seems counterintuitive”, while others might say, “That is beyond my skill level as an investor”. The simple answer to how you would go about doing this is to invest in precious metals and rare coins. By investing in these stores of wealth, investors actually profit when the market falls, cashing in on the other investors who are seeking a hedge against inflation at any cost. Smart investors hedge against inflation; successful investors hedge against inflation before it becomes a concern or before other investors are doing the same thing. Although the economy may be slowly rebuilding itself, it is no time to get comfortable with paper money again. As others begin letting go of their store of safe investments in favor of “fast cash” type investments, the successful investors of tomorrow can amass wealth.