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Avarae Global fund offers coin diversification


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Coin collecting is emerging as an alternative asset class in its own right, according to Ian Goldbart, adviser to the £6m Avarae Global fund.


The product, which launched on Aim in May, invests solely in global coins and is aimed at investors seeking to diversify their portfolio with an uncorrelated alternative asset.


“Coin collection is becoming its own asset class,” said Goldbart. “The coin market is changing, old-school collectors have been joined by investors seeking coins as a commodity.”


Goldbart noted that the asset is not a short-term investment, with the fund launched to achieve long-term capital growth. He believes the sector is low-risk and only potentially correlated to interest rate increases.


That said, a potential risk could be a worldwide drop in coin values though Goldbart believes this is an unlikely scenario.


“Coin collection returns worldwide are being driven by demand outstripping supply,” he said.


Countries of interest at the moment include Russia, the Eastern Bloc regions and China, Goldbart said. Historic UK coins are also of value but Goldbart is avoiding US coins because the market is already correctly priced and extremely competitive. Additionally, the country’s young history means coins are already in high demand simply due to lack of supply, he noted.



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