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Now is the time to sell stocks and buy investment grade coins

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It’s now been almost 10 years since the crash in 2007-2008 and with the recent declines in stock markets we now ask ourselves ‘Is it now time for a bear market?’. After all most bull markets last less than 5 years and when we see the below chart we have to think about cashing in on gains in the stock market.

The chart shows S&P500, over 6 years in a bull market until end of last year

Going into 2016, the Chinese slowdown and stock market turmoil, slump in oil prices, Greece’s economic crisis and the Syrian war makes for a glooming “cocktail of risks” as Chancellor George Osborne put it. The FTSE100 had lost 20 % since its last April high post-crisis on Wednesday earlier this week.

George Soros, the legendary billionaire investor, said last week he shorted the S&P 500 index (same as above chart) and went long in U.S. Treasuries. Further, in this recent interview, the hedge fund titan expressed his worries for China, who he says may be able to manage their situation "but have a way of inflicting their problem…on to the rest of the world".

At the same time as stock markets are turning into a downward spiral, rare coins may be due for a rise. Auction results during 2015 confirm that rare coins have seen a decline in prices since their 2013 highs. For example, in 2013 Victorian sovereigns in MS65 would generally fetch around £4000 in auction and 2015 the level was around £3000 (source: auction results from Heritage Auctions and St. James's Auctions).

As with all investments there are no guarantees but tangible assets such as rare coins are limited in supply and have a history of consistent high demand. These types of investments are one of your safest bets when facing a stock market slump. 

Now is the time to cash in on your stock market gains and buy rare coins at a discount. Call 0800 088 5350 or email contact@thecoincabinet.com to discuss your goals.


 

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