Coins Outperform Stocks and Gold Over 25 years January 28, 2009
a tumultuous year for financial markets, it is noteworthy
that rare coins outperformed all other assets considered,
including gold, by a significant margin.”
From “The Investment Performance of Rare U.S. Coins”
By: Raymond E. Lombra, Ph.D.
Rare coins have outperformed
the stock markets and gold during a year of severe economic
turmoil. Investment studies have shown that rare
coins of true quality and rarity, properly priced and
selected, can be excellent long-term investments. Although
past performance is no guarantee of future results, investment
in rare coins has historically offered the opportunity for
both substantial capital appreciation and asset protection
during inflationary cycles and periods of economic disruption.
As the economy moves through its regular cycle – from
recession to recovery to stable growth and, eventually, to
inflation – it produces windfall profit opportunities
for alternative assets like rare coins. For example, some
years ago, the Chairman and Chief Executive Officer of Fidelity
Investments was one of the principal investors in a partnership
that invested $348,380 in rare U.S. coins. The partnership
was liquidated approximately 4 years later for $2,158,450.
But rare coins offer more than the occasional windfall profit.
A study by the Chief Investment Officer for GE Private Asset
Management, Inc. concluded that rare coin returns have been
highly attractive over the last sixty-two years, and that
even a small allocation provides a good diversification for
a well-diversified portfolio.