Collectibles offer Value to Investors

At this years Chinese Grand Prix held in Shanghai Formula 1 CEO and Executive Chairman, Chase Carey, and Marin Aleksov CEO from Rosland Capital unveiled a limited edition 1000th Grand Prix coin in the Formula 1 paddock at Shanghai International Circuit.

Marin Aleksov stated: “We are excited to celebrate the 1,000th Grand Prix, a significant milestone for everyone passionate about Formula 1. This is the pinnacle of motorsport with truly historic roots; as long-time admirers of the championship, we knew we had to produce something very special to commemorate this grand occasion and celebrate this achievement with the wider Formula 1 community and its famously enthusiastic fan base. This 1000th Grand Prix coin is a fitting tribute to the history, passion and prestige of the Formula 1 World Championship and everything it represents.”

The newest addition to the Official Formula 1 Coin Collection from Rosland Capital, marks the historic occasion of the 1000th Formula 1 Grand Prix in fine silver and gold.

The 1,000th Grand Prix coins are 1kg in weight, 100mm in diameter, produced in 999.0 fine silver and 999.9 pure gold. Adding to their collectability and long-term investment potential, only 10 examples of the 1kg gold coin will be produced; with four examples already sold. Additionally, only 100 examples of the 1kg silver coin will be produced as well as 2,000 examples in 2.5oz silver. All 1kg coins include an acrylic display block, presentation case, certificate of authenticity, and handling gloves.

Each coin is accompanied by commemorative packaging including a certificate number, statement of metal fineness, weight, proof quality statement, and the signature of the Swiss assayer who certifies the work of PAMP SA, one of the world’s finest coin producers.

Advantages of Collecting

At times of speculative bubbles, hot IPOs and all things that start with buzzwords, collecting rare coins or limited edition valuables seems almost a relic from the stone ages.

But there are some obvious advantages besides keeping your cool in an increasingly insane world of bubbles.

Here are the most important advantages of coin collecting:

Annual Fees

If you buy gold in the form of coins, like Kruggerrands, there are no annual costs, no management fees, and no performance bonuses. When the gold price goes up, rare coins follow. And, eventually, they go up much more than gold.

Many times in the past, this indicator provided an early warning signal of impending bull markets and produced windfall profits for knowledgeable investors.

But unlike normal gold bullion coins, reliable, independent reports show that average annual returns on rare coins have historically been more than 300% greater than the returns on gold bullion.

Liquidity
Rare coins are the most liquid of all collectibles. Since 1963, the Coin Dealer Newsletter has published weekly dealer-to-dealer pricing information for all important US coins. If there is a need to sell your coins, you can expect (and receive) immediate payment. One caveat – read below.

Diminishing supply
This is a subtle, yet very important, investment advantage. The supply of collectible coins diminishes daily. Not only are limited edition coins, well, in limited supply, but the available supply is constantly diminishing as a result of meltings, abuse, neglect, etc. There are two advantages to that:

First, any increase in demand makes price increases inevitable. You can’t increase the supply of coins to meet new demand. The only way demand can be satisfied is with higher prices.

Second, a limited supply reduces the downside risk. As prices come down, production gluts (as in the oil market) don’t depress prices further and hinder a price recovery. In fact, in the coin investment market, low prices tend to drive coins off the market.

Favorable tax treatment
This is a seldom talked about (but significant) advantage of coin investing. According to SA Coins, South African rare coins aren’t taxable on their sale. That means there’s no CGT (Capital Gains Tax) payable on profits when you sell. And you can’t be taxed on the profits that you earn from investing in them. But be warned: It depends on the coin and region so get in touch with your local tax advisor

Caveats: There are of course a couple of things you need to consider before buying anything and hoping for value increase. First, buy only from reputable sellers and make sure that their claims can be verified. Second, as mentioned before get in touch with your legal counsel or local tax advisor in terms of inheritance or local tax. Buy pure metal coins and know what you are buying. This should be self-explanatory. How many times get people screwed by purchasing elaborate jewlery only to overpay and to get the final bill when they want to sell their items. Simplicity again is the best strategy

About Rosland Capital

Rosland Capital Group is a leading precious metal asset firm that sells all the popular forms of gold, silver, platinum, palladium and other precious metals. Founded in 2008, US-based Rosland Capital LLC strives to educate the public on the benefits of buying gold bullion, numismatic gold coins, silver, platinum, palladium and other precious metals.

Expanding its offering, Rosland Capital has partnered with Formula 1®, the PGA TOUR, the International Tennis Federation, and the British Museum to bring its customers exclusive, licensed coin collections. These beautiful limited-edition coin series celebrate some of the world’s most recognisable and prestigious events in beautiful gold and silver, in sizes ranging from ¼ ounce to 5 kilos. For more information about the Formula 1® Coin Collection, visit www.roslandcapital.com/f1.