Why you need to buy and sell gold coins (Part 6)

Pre-1933 gold outperforms today’s gold bullion…

Since the 1970s, an investment strategy that included pre-1933 gold has been shown to outperform modern gold bars, gold bars, Krugerrands, Canadian Maple Leafs, or American Eagles.

In fact, $1,000 invested in pre-1933 common-dated gold coins has a market value of $19,595. But, gold bullion would be worth just $7,429.* Clearly, investing in common-date gold coins has paid off.

Bigger winners of truly rare coins, but Collectors Universe reports that you would have done even better if you had picked up investment grade, US rare coins, gold, or the Dow in the last 30 years.

Pre-1933 Gold Offers the Best Leverage: Unsurprisingly, pre-1933 US classic gold coins are directly affected by rising gold prices. When gold rises, generic gold coins follow. However, many people do not realize that pre-1933 gold coins offer substantial leverage in the gold market and advantages over modern gold bullion coins like American Eagles.

Pre-1933 Gold Soared When Gold Was Flat – However, the US rare coin market sectors and the gold markets do not move in tandem. Generic gold coins soared in value in the early 1970s, in the coin bull market of 1976-1980, and again in the mid-1980s, despite relatively stable gold prices.

In today’s market, gold is trading near 20-year lows and generic pre-1933 gold is also severely undervalued. Both offer investors a good source of value at a time when high-tech stocks are tumbling, the economy is headed for a recession and inflation is rising rapidly.

Historically, all of these factors have put investors in a flight position to safety from paper assets to tangible assets. When investors suddenly enter the US rare coin market, demand can quickly overwhelm the limited supply.

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