Top > Business > 2006 > July > 2006-07-18

Rare Coins In a Burgeoning Market

Numismatic Investments Corporation announced it has commenced commercializing its discovery of significant price inefficiencies in the "rare U.S. coins" market by offering K-Score Portfolios of prospectively undervalued coins for sale to accredited investors. "After an extensive research effort we identified a considerable number of investment grade coins that are prospectively undervalued," noted Gary Knaus, Numismatic Investment Corporation`s president and CEO.

Prices for coins identified by Numismatic Investments as undervalued have increased 13.40 percent over the past eight months, where as the widely followed rare coin index rose only 5.28 percent. "This finding highlights the potential for above market returns to investors seeking the benefits provided by rare US coins in a well-diversified investment portfolio," said Knaus.

"This market is attractive for several reasons, not the least of which is that rare coin prices are 63 percent below their 1989 watermark high," remarked Knaus. Factors driving interest include a history of growth, excellent returns, high liquidity, independent coin certification services, opportunities for 1031 tax-deferred exchanges, and an estimated $40 billion of rare U.S. coins held by four to seven million collector/investors. "We prefer to work with and through financial professionals to ensure that potential clients are properly qualified," noted Knaus.