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The K-Score Portfolio Advantage
Just as equity market analysts develop sophisticated mathematical models to identify market mispricing, Numismatic Investments recently developed the first predictive models for identifying potentially undervalued and overvalued rare coins. Coins that appear to be undervalued are selected for portfolios. Numerous series of portfolio quality rare coins were backtested over both three-year and nine month periods. In all tests the positive K-Score coins increased in value substantially more than the industry standard rare coin index (PCGS3000).
Overlooked Mispricing Opportunities
Compared to the equity markets, rare coin pricing remains relatively inefficient. Only in the last few years has enough surviving coin population and reliable pricing data become available to allow for complex mathematical analysis. These factors have allowed Numismatic Investments to uncover significant arbitrage-like mispricings in the rare coin market.
Superior Performance
As shown below, over the past 21 months, the coins we identified as undervalued outperformed the rare coin market by a stunning 4,000%.
Strong Liquidity
In addition to being prospectively undervalued each Numismatic Investments portfolio coin must be in a sought-after grade (typically Mint State 63 through Mint State 65) and from a widely traded series. Coins that are very scarce or highly priced are excluded, as are coins from thinly traded series. As a result, K-Score portfolio coins have superior liquidity.
Diversification and Customization
To maximize the benefits of diversification, each K-Score Portfolio contains coins from a wide range of series and grades. Portfolios include a mixture of rare US copper, nickel, silver and gold coins. Portfolios can also be customized to meet specific investor requirements, such as precious metal coins only or a mixture of rare and bullion coins.
Limited Number of Portfolios
Of all certified rare US coins, less than 10% are eligible for inclusion in a K-Score Portfolio. For each investor portfolio, Numismatic Investments professional staff hand selects each coin to ensure quality and the best available price. As a result, only a limited number of K-Score Portfolios can be formed and sold each year.
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