The rare coin market like any other healthy market has its ups and downs. Pre WWII coins have been around long enough to have an established market. The modern issue coins can and often have a flash-in-pan type following.

Rarity value in coins is in context to their market demand. If everyone in America became interested in silver coins, there wouldn't be enough of any one coin to go around. For example, the 1921 Morgan was produced in huge numbers. Close to 87 million, in fact. That's only around one 1921 silver dollar for every household.

Many modern collector coin issues are minted in relatively low numbers, but does that make them good investments? I consider many modern "rare" coins to be like jewelry. They have their intrinsic value in their precious metal content, but when you sell the coin, you might not get back the premium you paid for it.

The most risky modern "rare" coins I think are the ones hyped up in promotional material or catalogs. They often have a story about their conception or design.

Low mintage numbers may be given to indicate rarity, but more often than not, a conditional rarity is created because of numbers receiving a certain grade by a third party grading company.

PCGS and NGC seem to be willing participants in grading modern common coins to give them a conditional rarity and legitimacy for the seller. The seller then asks four to ten times their worth to see if the market will buy the hype.

If you buy coins like these at the advertised prices, you might have to wait for a long time to sell them at a profit. Chances are you won't have the promotional resources to package the coin so you educate/convince someone to buy your coin at a really inflated price.

Modern commemorative silver or gold coins are risky to buy at inflated prices. The commemorative market tends to forget the original reason for the coin being special, and often won't pay for that specialness in the future.

Modern silver and gold coins don't have the track record of the old established collector coins, which makes them somewhat risky as an investment. There are modern rare coins that appreciate in value fairly quickly, but I consider ten years to be a minimum track record for an investment coin.

However, if you have your hand on the pulse of future trends and can predict them with some accuracy, be contrarian. Buy the trend-maker coin and profit from it. Otherwise, simply buy the modern rare coin because you love it, and not concern yourself with future performance, because you don't plan to sell it.

I prefer American Eagle silver and gold coins directly from the mint. They have an established track record. The baseball coins may be a flash-in-the-pan coin. The promotional material of course says they'll sell for multiples of their issue price. They might... Then they might not. I won't take the chance.

Few modern commemoratives have become modern rarities. The 2001 Buffalo silver dollar, I think is one exception. It sold out quickly and now sells for multiples of its original mint price. The 2011 25th anniversary silver eagle set looks like another hit for those lucky enough to have gotten their order in early on the day of sale.

When there's frenzy over a newly released coin, and they actually do get multiples of their original issue price, you need to be on either side of the frenzy, not in the middle of it. Either be the first one to buy some ahead of the crowd, or patiently wait out the frenzy to see where the dust settles.

To discover more about coins: collecting issues, money management, investing in the rare and bullion coin market, and much more, I invite you to visit http://www.heritagecoingallery.com for videos and free tips on buying coins at the best prices.

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"The desire for gold is the most universal and deeply rooted commercial instinct of the human race." - Gerald M. Loeb.

Besides commercial value, traditionally we (Indians) like to buy and hold the investments in Gold. In this post, let us try to understand the historical investment returns from gold and is it the safest or risk free investment among all the financial assets we have?

Gold prices and returns in rupee terms in the last 30 years:

The average returns from 1985 to 2001 are roughly 6% on a compounding basis. If we calculate the inflation adjusted returns then the real rate of return would be far less or at least equal to inflation. From 1997 to 2001 the prices were almost stagnant.

The average returns from 2001 to 2008 is roughly is roughly 10% (CAGR). In 2001, the September 11 attacks caused global stock markets to drop sharply. The attacks themselves caused approximately $40 billion in insurance losses, making it one of the largest insured events ever.

In 2008, we have seen bear phase in financial markets due to bankruptcy of major Financial Banks in USA and Europe. The average returns from 2008 to till date is roughly 18%. Amazing returns indeed, the demand for gold has increased during this duration because investors or economies preferred to stock gold over other financial products.

So, can we safely assume that Gold prices will rise forever or continuously? May be or may not be. Gold prices increased when people lost trust in paper currency, this has been proved in the past. At the same time, when dust settles down, investors prefer other Financial products over Gold.

"As fewer and fewer people have confidence in paper (currency) as a store of value, the price of gold will continue to rise." - Jerome F. Smith

In 2013-2014 the performance of Gold is not great. From the Rs.31, 000 levels per 10gms, prices fell to Rs25, 000. The price fall was still restricted if we compare to international Gold prices. Domestic gold prices are still at elevated levels mainly due to the rupee depreciation and the import duty.

Volatility in price movement:

Two decades back Gold prices used to rise steadily and the volatility in price movement used to be minimal. Now, the price movement is influenced by many factors like but not limited to Foreign Exchange rates, Demand for Dollars, Crude oil prices, Country specific economic factors, Equity markets performance etc. Gold is now both a commodity and currency accepted across nations, financial institutions, stockists, investors etc.

To sum it up, Gold may not be the safest bet anymore especially if you are expecting quick short-term gains. But if your time horizon is more than 5 years or so then returns may beat inflation. In fact, the periods of extreme volatility could be used to bring the average cost down.In my view, Gold should be part of your portfolio, but not more than 10%. It is advisable to buy gold in a staggered manner rather than investing lump-sum. Gold ETFs are the best mode of investment.

Now that there is a fear of brewing crisis in Middle East. Are we going to witness another bear phase? (Let's hope not).

Please participate in the below poll and give your opinion:

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I've counted 13 scales proposed for defining rarity in coins. Only a few are well accepted and none are as universally accepted as the Sheldon scale for grading coins. Perhaps the most common rarity scale is also an adaptation of Sheldon's scale.

Some rarity scales are merely descriptive of their actual rarity, while others base their judgment on numbers. I think using numbers is a much more accurate than only attempting to describe them verbally.

Sheldon's rarity scale has both a verbal description and numerical description associated with it, similar to his state-of-preservation grading scale. This is really helpful in understanding rarity.

I haven't found a consensus regarding any of the rarity scales, so I've chosen this version of Sheldon's Rarity Scale, because it uses quantities and descriptions that seem reasonable to me. That leaves both the numbers and descriptions open to debate.

Sheldon Rarity Scale

R1: Over 2000 estimated: Very Common, readily available

R2: 601-2000 estimated: Common, not too difficult to find

R3: 201-600 estimated: Less Common, available at most shows, but in limited quantity

R4: 76-200 estimated: Scarce, somewhat difficult to find, only a few likely at larger shows

R5: 31-75 estimated: Very Scarce, may or may not find at larger shows or auctions

R6: 13-30 estimated: Rare, unlikely to be more than 5 for sale anywhere in a year

R7: 4-12 estimated: Very Rare, almost never seen, only one may be offered for sale in a year

R8: 2-3 estimated: Prohibitively Rare, one may be offered for sale once every 5 to 10 years

R9: 1 estimated: Unique, or nearly so

As you can see, this scale refers to count estimations. It's impossible to know an exact number. At any time, another coin could surface or disappear and change the figure.

Another useful scale was developed by Q. David Bowers. He calls it the Universal Rarity Scale or URS for short. I think this scale goes beyond simply stating rarity, to measuring the commonness of a coin. This can also be useful.

Universal Rarity Scale

Rarity

Number of known coins

URS 0:

None known

URS 1:

1

URS 2:

2

URS 3:

3 or 4

URS 4:

5 to 8

URS 5:

9 to 16

URS 6:

17 to 32

URS 7:

33 to 64

URS 8:

65 to 125

URS 9:

126 to 250

URS 10:

251 to 500

URS 11:

501 to 1,000

URS 12:

1,001 to 2,000

URS 13:

2,001 to 4,000

URS 14:

4,001 to 8,000

URS 15:

8,001 to 16,000

URS 16:

16,001 to 32,000

URS 17:

32,001 to 65,000

URS 18:

65,001 to 125,000

URS 19:

125,001 to 250,000

URS 20:

250,001 to 500,000

C. Scholten developed a scale for rarity in 1953 that I think is less useful than the two above. The Scholten scale depicts the following degrees of rarity, but I can't find any definition for the descriptions he uses.

Scholten Rarity Scale

Rarity

Number of known coins

C

Common

N

Normal

S

Scarce

R

Rare

RR

Very Rare

RRR

Extremely Rare

RRRR

Of the utmost rarity

So the next time you're discussing "rare coins", with another coin expert ask if it's "R7 or R8 rare" or are we talking R9? If he doesn't know what you're talking about, he probably doesn't know what he's talking about either. Most rare coin experts are familiar with Sheldon's Rarity Scale.

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A mint state/uncirculated coin will NEVER need cleaning. Don't even consider cleaning it for any reason. Circulated coins don't have the value of their uncirculated counterparts and can sometimes be improved with a light touch up.

A well circulated coin needs to look well circulated, so leave it alone. That leaves the AU grade range of silver coins most vulnerable to being improved by cleaning. If you must clean the coin, do it properly!

Otherwise take it to a dealer and ask for their advice. The dealer will probably tell you to leave it alone, since improper cleaning will substantially decrease its value and sale ability. The more expensive the coin, the more disastrous improper cleaning will be for its value.

Remember, you cannot unclean an improperly cleaned coin.

Any coin whose surface doesn't look quite right will be labeled "cleaned" by coin graders. Their surfaces will look flat, have small scratches or hairlines in it, or some other sign of tampering. Among the most common reasons for a coin to receive a Details Grading is unskilled and improper cleaning.

Improperly cleaned is a generic term used by coin graders to describe unskilled cleaning when the exact nature of the action is uncertain. Improper is the operative word here. Improper cleaning is applying an abrasive such as a scouring pad, Scotch Brite pad, cleanser, polishing compound, etc. to the coin's surface.

The term "improperly cleaned" used by the grading services suggests there are proper ways to clean a coin. Light, nondestructive cleaning, particularly when found on older coins, may still permit numeric grading of the rare American coin.

There are a couple of nondestructive methods of cleaning silver coins. I'll gently wipe business strike circulated coins with rubbing alcohol and cotton pad to remove surface grime and finger prints. This makes the coin look more presentable without removing toning or doing surface damage.

Washing the coin in dish detergent also constitutes proper cleaning. Let the coin soak in dish detergent mixed 50/50 with water for ten minutes, then swish it around in the detergent water before holding it under the running rinse water, and finally blotting it dry with a terrycloth towel.

For very specific kinds of problems, there is a professional coin dipping solution called EZ-est, which removes surface contaminants quickly without apparently damaging the surfaces. This to me is a great product for enhancing the eye appeal of a coin without changing mint luster or any important characteristics.

I rarely dip silver coins. Dipping solutions only work for a limited number of very specific situations. It is not a panacea for problem coins.

I only dip a coin after carefully considering whether the coin will be substantially improved by its use. For example, if the coin has tarnished to a dark brown or black I'll consider dipping it briefly. I don't want to completely remove the toning, just enough so the features can be seen again.

I use a small sieve with the coin always visible. I'll swish the coin just under the solution surface, so I can constantly monitor the coin surface change. Then I remove the coin just before it's where I would like it. I immediately dunk the sieve into a container of water to stop the chemical action.

Only a few seconds in the solution will do what I need it for. I have noticed a glitter floating in my container of coin dip and realize the glitter is microscopic pieces of coin removed by the solution. Repeated dipping or leaving the coin in too long will constitute improper cleaning of the rare American coin.

The directions on the container say coin surface damage may result, if the coin remains in the solution for longer than 15 seconds. I strongly recommend adhering to that time limit. If the problem isn't solved in that timeframe, it probably won't be solved by the dipping solution anyway.

Learn what coin surfaces should look like in their natural state. It will help you appreciate what you have and not be tempted to alter it. If the coin has problems to begin with, DON'T BUY IT!

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Since beginning of time, wealth has been known to earn someone respect and a high place in the society and therefore it's no wonder that being wealthy is the ultimate goal of many.

People can get wealth from inheritance but most people have to work hard for it. Generation of wealth is different for each person as some people seem lucky and make money quickly while others have to toil for a very long time.

One way of creating wealth that the world has embraced today is investing especially in things whose value are likely to never depreciate e.g. real estate, gemstones, golden eagle coins and stamps amongst other things.

Here are the reasons as why to why I love gold coins and stamps:

1. The golden eagle coins are among the most popular form of investment in the world as they are guaranteed by the American government and they can be traded freely. The coins have a face value of $50 and their design is very specific to allow consistency and prevent conflicts.

Golden eagle coins have 22 karats of gold that must come from America only as stipulated in the law. Gold is 91.67% while the rest of the percentage is of copper and silver alloy. This is done to ensure the coins are hard wearing. The stamps usually have a lower value than the coins as they are very thin although the same percentage of metals is observed. There are also replicas of the stamps but their value is way lower of course

2. The value of the golden eagle coins and stamps is determined by many factors which include their weight. The coins come in dominations of 1/10, 1/4, 1/2 and 1 oz. market changes also affect the price of golden eagle coins and stamps and this is why investors should be watchful of market fluctuations to avoid losses. Economic policies formulated by the government also shake up the price of the gold so a wise investor is one who knows of the different ways of protecting their investment.

3. Liquidity is one of the most important aspects of a good investment and golden eagle coins and stamps offer this. The coins are accepted in major investment markets all over the globe and monitoring the value on all parts of the world has been made easier by the many websites which trade in them and offer by the hour updates of prices. The prices are also published in newspapers daily.

4. Golden eagle coins and stamps helps in diversifying one's investment portfolio and are also a good way of protecting one's wealth from economic policies that are reactionary which are usually created by the government in a bid to transfer wealth from individual to itself. The effects are usually short lived but they affect other kinds of investments more than gold.

That said research is mandatory when you chose to invest in golden eagle coins and stamps as gives you the history of prices (remember history and trends are cyclic) and also helps you compare the different prices before trading. This enables you to safeguard your investment against market changes like inflation, deflation and government policies.

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Ready to sell your old treasures? You have unwanted jewelry and gold buyers have cash. They will offer you top dollar for your old jewelry. Sometimes these businesses will buy more than just your jewelry. If you have collectibles, you may be able to sell them at the same time. Here are some tips to keep in mind when selling your golden treasures.

Know what your items are worth. Check the current market price before you get an estimate so that you have an idea of what your golden treasures are worth. The price of metal fluctuates every day. Keep in mind that prices are the highest they've been in years, so now is a good time to sell.

Some companies offer a mail-in service for the jewelry and watches people want to sell. If you mail your unwanted jewelry, you risk losing it completely and you might not get a fair price. Local buyers offer higher prices than their mail-in program competitors. According to Consumer Reports, cash-for-gold companies paid between 11 and 29 percent of the market price for gold.

A gold party is similar to a Tupperware party in that a small group of people gathers at the host's house to sell their jewelry to a buyer. You can socialize with your friends and enjoy a few glasses of wine at the party, but don't expect top dollar. If you sell your golden treasures at a party, it will not be valued fairly. Additionally, the party's host will probably get a 10 percent commission.

Find a reputable purchaser in your area. Check out the company website. Is there a physical address? Ask to see their credentials. After you find a local dealer, bring your golden treasures in to get an offer. Watch the buyer weigh your jewelry and don't hesitate to ask questions.

Bring your driver's license or another federal or state-issued identification. All buyers are required by law to ask sellers for identification in case the police show up with questions about the sale of stolen property.

Take your collectibles, brooches, pins, coins, bars, bullion, jewelry, golden teeth, and crowns to a local buyer and ask them to estimate their value. Gold buyers are looking for anything that has gold in it. They are in business to give free estimates. Expect to get at least 50 percent of the value of your golden treasures. Of course, if your jewelry is extravagant and beautiful, they may be willing to offer more than the melt value.

Now it's time to trade your unwanted jewelry for some cold, hard cash. Visit reputable gold buyers for appraisals. Those golden treasures gathering dust in your jewelry box are worth a lot more money now than they were a few months ago.

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With the current economic climate being so difficult to navigate, it is not surprising that so many people are looking for alternative investment opportunities. However, the problem is that so many investment options are too heavily based in paper currency, which means that they will always be subject to inflation and instability.

Stock Exchange
The stock exchange is one of the most difficult fields to invest and to trade stocks consistently profitable you need a few years of experience. Even professional analysts have trouble with correct expectations, and if you are new to the investment process in general, I can only tell you that I have never been a huge fan of them.

However, in such difficult times, it would make sense that investments should be made in assets that remain relatively untouched by the economic climate. Like Gold, as it is one of the best hedges against inflation and financial risk available. The Swiss Gold bar, in particular, can be a good investment to make for investors who are just beginning to navigate potential investment opportunity.

Swiss Gold Bar
When you buy the Swiss Gold bar, you get exactly what you pay for, which means you will only have to worry about transaction fees when you invest directly into physical bullion. You will have all of the assets to own under your name, with a storage certificate that you can rely on whenever you want to make the withdrawal. An immediate advantage that comes with the chance to buy Swiss Gold bar is the fact that you will have complete and total ownership of it. You will never have to worry about partial ownerships, and you can check on your investment at any time.

To begin with, gold bars are divided into two main types, which are cast and minted. Cast varieties are produced by a manufacturer after liquid gold is poured into the appropriate mould and then polished until it can be purchased in its ready form. The minted variety is made by cutting gold blanks from large sheets of solid gold. There are two primary types of Swiss Gold bars that can be purchased as well.

The Credit Suisse is one of them, and they are a popular type to purchase because they can be easily carried and stored for travel. They are fully backed by the Suisse bank in Switzerland, which gives them immediate value anywhere in the world. The second type of gold bar is known as the Gold Dream PAMP, which are accepted by traders and dealers all over the world. These bars are excellent beginning purchases because they are all sealed and accredited, while being easy to transport and keep with you for all travelling purposes. They can be an excellent way to begin investing in gold, as even the smallest starting amount holds powerful value.

Reminder
But do not forget, before purchasing any gold investments, it is important to understand what gold bars are and how they work. Becoming familiar with their potential will ensure that you make the most of your investments without feeling stressed or inclined to sell or buy in any direction. And buy them always from official dealers. Yes, you can also buy them on eBay, but then all the risks are for you.

I am as always, bullish on Gold because it has proven its worth during the last 3000 years, in which great empires, kingdoms and great brands came and went but Gold and its value is still with us today.

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