Professional Coin Grading Service (PCGS) has just released investment performance figures for Proof Gold Coins for the period from August 2011 to July 2012. The results show Investment Grade coins holding stead and comes at a time when gold bullion has struggled to perform, actually dropping 16% over this same period of time.

This chart isolates the Proof Gold Coin segment of the PCGS 3000 rare coin index.

PCGS3000-ProofGold

PCGS is a division of Collectors Universe, Inc. (NASDAQ: CLCT), the leader in third-party authentication and grading services for high-value collectibles including rare coins, trading cards, tickets, autographs, memorabilia, and stamps.

The U.S. Gold Bureau recommends investors to consider all options before making a decision. Our Precious Metals Specialists work with clients one-on-one to create custom portfolios designed to suit your needs.

Some key points to remember:

What is Bullion?

  • Bullion is “raw” gold, silver or platinum in coin or bar form.
  • Price is based exclusively on the weight of the metal.
  • The “spot price” of the metal is established by the Commodities Exchange (COMEX).
  • Prices can be quite volatile, similar to the stock market. Daily gains or losses of 5% are not uncommon.
  • Bullion is popular with experienced commodities speculators looking to time the market for a quick return.
  • Investment in bullion requires a high tolerance for risk since the price can rise or fall dramatically.
  • Bullion is a controlled commodity that falls under the Patriot Act.
  • Sales of bullion of certain types and quantities are reported to the U.S. government and IRS.
  • Bullion can add short-term liquidity to a balanced portfolio for investors that may need to cash out early.

What are Investment Grade Coins?

  • Coins are graded and certified by a third party organization (PCGS and NGC are the most widely recognized).
  • Certification guarantees the quality and condition and assigns each coin a certification number and barcode.
  • The value of investment grade coins is determined by supply and demand, just like other high-end collectibles (fine art, antiques, classic cars, etc.).
  • Investment grade coins are considered to be a more secure investment since historical data indicates much less volatility, along with a more steady return.
  • Purchases and sales of Investment Grade Coins are considered a private transaction and are not reported to the federal or state government or the IRS.
  • Rarity is the key factor that drives the price up over time. Selecting the right coin is key – and our firm can help you do that.

Diversified Portfolio Strategy

  • Diversification is at the heart of any well-balanced portfolio.
  • Balance within precious metals means acquiring a mix of bullion and investment grade certified coins.
  • Bullion and certified coins are “uncorrelated assets,” meaning they do not necessarily go up and down at the same time.
  • The objective is to give you the best opportunity for growth while protecting your money from dips along the way.

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