Why collectibles?
If you missed last month's article on why non-collectible gold and silver have proven to be one of the best ways to protect yourself against failing fiat currencies and possible economic volatility, check it out here!
In part one mentioned above, we share why non-collectible gold and silver play an excellent defensive role in your wealth strategy. We know that there has never been a championship team that ONLY won on defense, so let's look at a possible offensive gold and silver strategy.
When we say offense, we mean a possible way for you to not only win the financial game you decide to play but possibly win it faster.
Sitting around and waiting for gold and silver to go up in "market value" isn't necessarily a bad thing but has left many people disenchanted over the years because some "expert" told them to expect instant and massive gains. The reality is that history has proven that non-collectible gold and silver have always done their job of holding their value.
If you are looking for something more exciting with the potential for a faster increase in asset value, don't discount what collectibles can do for you.
The collectible market as a whole has a long history of success (think Michael Jordan's rookie trading card, popular pokemon cards, famous artwork, etc.), and even more so these days. With the rise of novelties, more art, more wealth, the introduction of digital collections, and several more factors, collectibles are more mainstream than ever before.
When it comes to collectibles, their value doesn't necessarily come from the material from which they are made; it comes from the rarity, story, uniqueness, creativity, other additional production work or intellectual property, and ultimately the demand people have to own that thing.
Although owning collectibles isn't a sure thing, there are definite advantages to choosing certain types of collectibles. For us, owning collectible coins is one of the safest ways to get into the game.
Think about it, if you have a "collectible" made of paper or as a digital asset, if the collectible value diminishes or goes away altogether, the overall value goes to basically nothing. The same would apply to traditional artwork, shoes, and many other collectibles.
Collectible gold and silver are different. First of all, history has proven that continued value in collectible type coins made of gold and silver has been reasonably consistent. Even if you set aside that fact, owning a collectible made of a precious metal gives added security that the chances of that piece ever going to "0" in value are VERY LOW.
Although most collectible coins have proven to go up in their overall collectible value over time, even if certain ones don't, history says there is a high chance that gold and silver will never lose their value in the market.
Now, we just walked through a worst-case scenario of a coin losing its collectible value, but let's take a look at the exciting and more likely outcome of owning collectibles that could dramatically increase in value.
We highlight a few coins that have done very well in the market as collectibles in the brand new Wealth Strategies, but let's look at a few more:
• 2020 Majestic Eagle 2 oz Black Proof Original Retail Between $280-$360 What it would cost you now: $450-$650
• 2015 Evolution of Life Ammonite 1 oz Original Retail Between $140-$230
What it would cost you now: $900-$1,400
• 2015 Magnificent Life Peacock 1 oz Original Retail Between $115-$150
What it would cost you now: $650-$900
• 2018 Big Five Elephant Gold Note 1 Gram Original Retail Between $90-$140
What it would cost you now: $300-$350
• 2020 The White House by MS 1 oz Original Retail: $220
What it would cost you now: $330-450
• 2019 Idaho State Label Silver Eagle (AutoSaver) Original Retail: $95
What it would cost you now: $220-$250
• 2021 An American Life Ben Franklin: Founder Original Retail: $120
What it would cost you now: $170-$200
These are some great examples of what can happen with modern collectible coins--and we could share many more! That said, remember that no coin is guaranteed to have a certain result. We believe in playing the game with a mindset of longevity and legacy and only capitalizing on the value of collectible gold and silver when necessary to further your financial strategy. And if you are getting discouraged because certain coins in your stack aren't demanding the values you hope or expect right now, don't worry!
Remember that creating a legacy doesn't happen overnight. Not every play in a football game is perfect, not every flower planted in the garden will grow, not every horse wins the derby, and not every coin will be a home run. The sum of the effort and the sound nature of the strategy will generally breed success for most things in life--having patience in the collectible world is a MUST.
There can be great opportunities for real asset growth playing in collectible gold and silver. Still, it really is a way to have tons of fun, connect with people, and ultimately leave something of value to future generations in the form of memories, the collectibles themselves, and the stories that go with them.