New book on coin investing by Donald Kagin suggests upcoming bull market for rare coins

The Investment Column from the Feb. 2, 2015, issue of Coin World
By , Coin World
Published : 01/16/15
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One book can’t have all of the answers. 

Donald H. Kagin, Ph.D., freely admits this in the introduction to his new book Profit from Gold and Rare Coins Now. He writes that instead, his book should be viewed as a road map, “laying bare all the unmarked curves and forks in the road that, ultimately, dictate how and when to invest in gold and rare coins and currency.”

He intends that the book serve readers as a sort of “boot camp for the numismatic mind,” telling the reader, “when you have absorbed every word and set this book down, you will be prepared enough to begin your journey.”

To further assist, Kagin has designed the book as a “Living Book,” which he intends to update through a website, www.goldandrarecoins.net, so that the book does not end at the final print chapter, but instead is updated to keep current with shifting markets. 

A perfect storm

Kagin believes that factors today create a perfect storm favoring a dramatic rise in bullion and rare coin values. These factors include economic uncertainty, a foreign debt crisis, the possibility of future inflation, and a monetary policy by the Federal Reserve Bank that he characterizes as ultra-expansionary. Add to that technological advances that make it easier to value coins and increasing investor demand for alternative assets like rare coins, and Kagin sees these factors forming the beginning stages of a bull market. 

He writes, “We are in the beginning state of the biggest, most robust bull market in investment-quality and legacy — exceptionally rare and important — coins in the history of numismatics.” 

The author relates a story that a surgeon told him: while the doctor could remove an appendix in 15 minutes, he attended medical school for seven years to know what to do if anything goes wrong. Kagin wrote his book with this in mind: to help a collector/investor both guard against unexpected changes in the market and find the most expedient way from point A to point B. 

If one theme permeates the book, it is that becoming a seasoned numismatic investor takes a substantial investment in time and resources and that a collector/investor has little to gain by going it alone. Instead, look to a trusted network of dealers and advisers (preferably ones with good track records) to help you build a profitable collection.

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