Summer Coin Auction Displays the Desire for Alternative Asset Investing
With the pandemic taking hold and people looking to build wealth, alternative investments have taken center stage. Precious metals are certainly one of those, which ties into the collective coin industry. In July of 2020, the Regency Auction took place. Here, coin collectors and investors alike tuned in to see where the market currently sits. According to the results, this was the largest sale of 2020 thus far.
In an article by GreySheet.com, it was stated the auction broke records for:
- Live bidders
There were several different lots up for auction and with the record number of people, it was certain bidding wars were going to take hold. From a Civil War collection to Roadrunner collection, there were more than 20 auction record prices set.
“Since it was the first major auction and trade show to be open to the public since the pandemic started, we knew that there would be many people who were weighing whether or not to attend. We were pleased with the turnout, as several returning and new customers came to the auction to place bids and watch the action. The real stars of this auction, however, were the phone and internet bidders.” – Matthew Bell, CEO of LRCA
What does this mean for the coin market going forward? It means people are still willing to put their wealth into assets that appreciate, even if it is not traditional. Many of these coins are one of a kind or of extremely limited quantity. As time progresses, many of these remain in collections and the supply dwindles.
Another positive impact this market will benefit from is increase demand for precious metals. Many of these coins were struck using precious metals that are no longer minted today. If an investor can combine an appreciating asset like precious metals, combined with a desirable rare coin, it is the best of both worlds.
Lastly, for those of you that worry about liquidity or demand risk, this auction should lay those fears to rest. In the middle of a pandemic, this auction broke several different records regarding bidders and attendance. Also, not to mention there were many price records set. Coins and other rare currency investments are meant to be held over a long period of time, giving the asset time to appreciate.
When constructing a portfolio, these recent statistics should provide you with confidence that the coin market is alive and well. As stocks and other traditional investments become average, investors such as yourself need to look elsewhere to generate more return. Building a portfolio should always be diversified and if you have any specific questions consult an investment professional.
For upcoming auctions, take note of price appreciation and availability. These are going to impact prices now and going forward. As Matthew Bell was quoted as saying, “We have seen lots of increased demand for tangible assets as the uncertainty in the overall economy (increases)”.