There are many reasons why people are now looking for alternative investments. It can often seem like the old stock market regulations have been thrown away after the crash. Even after all the time that has passed, the markets are still turbulent. There has never been a better time to start looking for alternatives.
Along with things like real estate investments, one of the great forms of alternative investment has been in currencies. People who collect coins can accumulate a large number of small investments that are increasing in price. It's easy to see why so many people are drawn to this solid and reliable asset. But it is important to know everything before investing your money. So is coin collecting like Argyle Art Coins is a good alternative investment?
The price is correlated
If you are looking for ease and simplicity, investing in coins could be the best decision you have ever made. There is no better way to keep things simple. One of the main reasons for this can be traced back to the strong price correlation of the currencies. When you want to calculate the value of your currency, just look at the gold prices on the stock market. That means you can make quick decisions and new investments very quickly and easily. The whole process is much more laborious and complicated when you have to take into account many different variables that can affect an investment. Some of those variables also affect your levels of control, as we will see below.
You have the control
There is nothing between the coin in your hand and also the tangible value of it. Whereas if you are investing in a company, there are all kinds of managers and workers that you must trust to guarantee the value of that company. If that manager makes a bad decision and the company leads the company into a financial crisis, you will pay for it. And there's nothing you'll be able to do about it. This is one of the great risks of investing in a business rather than an actual physical asset. Investing in currencies basically means not having to rely too much on other people. And that can only be good for the sake of your long-term investments if you ask me.
Easy to sell
No matter how bad things are or what the stock markets are doing, it is always easy to sell gold coins, or silver coins like the limited edition commemorative art coin. This is something that doesn't really change. This means that they are very liquid. Even in the case of a major crisis, there will be no problem changing them. Much of this is due to the fact that they are physical, and there will always be people who are willing to support them. In fact, people tend to buy coins and gold even more than usual during a crisis. They see them as safe havens, and this can be very good for people looking to sell gold during a crisis of some kind.
Collectibles are important
Another thing that makes the coins very easy to sell is their collectability. When something is collectible, it's very easy to search out buyers. People want to build their collection, even if they are not concerned about the investment side of collecting coins. There are always collectors looking to buy, and you can take advantage of this. If you are lucky enough to find yourself in possession of a coin that is very difficult to find, you could have collectors scrambling to buy it from you. This can lead to a bidding war, and a bidding war is always a good thing for the person selling. Therefore, make sure you know which coins are considered most desirable by existing collectors.
There are additional costs
However, there are some downsides to collecting coins as a way to invest. These are the ones we will see now. For starters, there are some additional costs that you are likely to incur compared to investing in the stock market. You may think that you will normally pay for the value of the gold, but this is not always the case. Sellers you buy from will generally add a premium that will cause the price of the coins to go up when it comes to completing the sale. For the seller to make a profit, these premiums can often be quite high, which means that you will have to pay above the value. It's important to weigh whether you get a good deal every time you shop.
Capital gains tax
Another hurdle you will need to overcome is the capital gains tax. The tax on capital gains on precious metals can be almost double the tax on investment gains in the stock market. This is something that should definitely be considered before deciding how to invest. It may not be worth it if the added tax costs take away the extra money you make. It certainly makes things difficult for you as a currency investor. You will need to do calculations and calculate the costs and benefits of this type of investment before proceeding.
Storage can be a challenge
When it comes to metals, storage is another thing you'll have to think about. Obviously, once you invest in stocks and shares, this is often not a problem because there's nothing physical. But all of that is different with coins because they are physical objects that must be kept somewhere. If you are storing a large number of expensive coins in a secure storage facility, this can cost quite a bit of money. You don't want to pay large sums of money for storage because it could significantly affect your earnings.
Now that you understand what collecting coins as an
investment involves, you can decide if it is the right move for you. Contact Argyle Art Coins today!