Treasure assets, non financial assets such as collectible rare coins, are more and more becoming the choice of flush investors looking to diversify their portfolios.
According to Terry Hanlon, president of the Professional Numismatists Guild, “In the environment that exists right now, where the Dow is very high…most of the people buying rare coins… are people who are taking profits as a result of a semi-bull market … and want to reinvest some of that money in non-dollar-based-type investments.”
Certain key date coins, such as the 1870-S Silver dollar or the 1885 Trade dollar, have more than doubled in value over the last ten years.
According to Jeffrey Bernberg, past president of the Professional Numismatists Guild, “The ‘Mona Lisas’ and Gauguins of numismatics are just exploding in price, as records are being broken virtually every time they come up for sale at auction.”
A major reason for the popularity of investing in rare coins, aside from acquiring a beautiful asset with a rich history, is favored tax treatments. The buying and selling of rare coins is a private transaction conducted solely between the investor and dealer.
According to David Kautter, managing director of the Kogod Tax Center at American University, rare coins “are treated as capital assets, so no tax is imposed as they appreciate in value. The appreciate is not taxed until the coins are sold, and then the tax rate is only 20%, not the top individual tax rate of 39.6%.”
A feature article from CNBC is helping to shed some light on the rare coin investment market. As others catch on, an ongoing increase in rare coins sales is expected. If you want to diversify your portfolio with these treasure assets, please contact National Coin Broker today – 800-707-7923.