Let’s say you have a portfolio of only gold. For example, next year it is publicly announced that China sells off all of its gold, and this effects the market at large, gold will drop tremendously. Your portfolio will experience an obvious devaluation.
If, however, you counterbalanced the gold bullion with ultra-rare numismatic coins, only a portion of your portfolio would be affected. In fact, there is a chance that the certified and graded coins can offset the losses depending on the length of time you hold on to the portfolio.
Diversifying your portfolio within various metals, such as platinum, gold and silver is important. However, it is equally important to have numismatic coins in your portfolio. Listed below are examples of what a diversified portfolio would look like from 2007 to 2018.