| Top Investment Performance
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| | founding fathers
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| Throughout history, many coin collections
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| | Condition
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| have produced substantial long-term
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| | The overwhelming majority of U.S. coins
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| profits for their owners. This is
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| | ever minted were circulated. Many coins
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| particularly true for coin collectors of
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| | were lost through attrition and others
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| this century. Indeed, Harold Bareford
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| | were damaged by use, thus eliminating any
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| reportedly purchased a collection of U.S.
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| | potential for numismatic value. The few
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| gold coins for $13,832 in the early 1950s
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| | surviving uncirculated coins are in a
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| which was resold at auction in 1978 for
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| | much more pristine condition.
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| $1.2 million. A more substantial
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| | Investment quality coins are primarily
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| collector, Louis Eliasberg, built a
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| | those coins rated in the 11 uncirculated
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| collection that cost about $300,000. In
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| | grades, 60 and above, on the American
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| 1982, it brought $12.4 million at
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| | Numismatic Association's 70 point grading
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| auction.
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| | scale. A coin's grade is a measure of its
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| This investment performance has been well
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| | condition or state of preservation. The
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| documented by sources as diverse as The
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| | higher the grade, the better the
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| Wall Street Journal, Consumer Reports and
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| | condition.
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| a host of industry periodicals and
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| | Uncirculated coins fall into two broad
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| guidesheets. What these reports have
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| | categories: Proof (PF or PR) and Mint
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| shown is that carefully selected
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| | State (MS). Mint State coins were
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| portfolios of rare coins have had a high
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| | originally meant for circulation but
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| rate of long-term appreciation.
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| | never were circulated, so they remain in
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| Of course, past performance is no
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| | the same condition today as when they
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| guarantee of future results and
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| | were minted. Proof coins were never meant
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| investments in rare coins do involve
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| | for circulation, thus they received very
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| risk. While the market performance of
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| | careful handling and were specially
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| different coins varies substantially and
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| | struck at least twice on highly polished
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| no representation can be made that an
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| | planchets.
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| individual investor's portfolio will
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| | The beauty of a coin can attract
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| enjoy results similar to those that have
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| | collectors as well as investors, and
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| been documented in the various
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| | hence increase demand for a particular
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| independent reports and surveys, those
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| | coin or set. This increased demand can
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| reports and surveys illustrate the
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| | result in rising values. Eye appeal is
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| impressive returns that carefully
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| | affected by several factors including the
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| selected rare U.S. coins can produce.
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| | beauty of a coin's design, the minting
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| Tax Benefits
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| | process used, the fullness and sharpness
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| Capital gains on coins can only be taxed
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| | of its strike, the toning, the brilliance
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| at liquidation, when the profits are
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| | of its luster and the amount of wear and
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| actually realized. There is no taxation
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| | number of blemishes on the coin's surface
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| on phantom or undistributed profits as
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| | Portfolios or Collections?
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| there are with some investments. And
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| | The age-old description of coin
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| unlike most other investments, there is
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| | collecting as the "Hobby of Kings" is
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| no federal income tax liability on
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| | both accurate and misleading... accurate
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| so-called "wash sales" or like-kind
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| | in conveying the outdated perception that
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| exchanges which enable investors to trade
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| | coin collecting is restricted only to the
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| their rare coins for other rare coins of
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| | very wealthy, misleading in that the
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| equal or greater value
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| | number of collectors has steadily
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| Intrinsic Value
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| | increased and has been estimated by the
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| Unlike paper investments, rare U.S. coins
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| | American Numismatic Association to
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| have real tangible value you can feel
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| | include as many as 7-10 million coin
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| each time you hold one in your hand.
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| | buyers in the United States alone.
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| Therefore, they offer two ways to build
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| | Typically, the coin collector collects
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| wealth. Carefully selected coins truly
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| | coins for their rarity and historical
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| offer the best of bullion and numismatics
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| | value. Collectors view their coins as
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| in one investment. They contain the
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| | rare art and as the tangible remnants of
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| intrinsic security of bullion and can
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| | the cultural and economic forces that
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| also offer extraordinary profit potential
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| | created them.
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| regardless of what precious metal spot
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| | The investor begins from a different
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| prices do. Still, precious metal content
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| | starting point--the fact that coins of
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| is only a relatively small factor in
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| | proven rarity have shown remarkably high
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| determining the value of many rare U.S.
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| | rates of appreciation. He sees the
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| coins whose value is almost solely based
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| | economic results of the pleasures of
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| on condition, demand and rarity
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| | collecting and makes his original
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| Historically Significant Beauty
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| | purchases with profits as his only
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| Rare U.S. coins are a part of our
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| | motive.
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| history--direct links to America's rich
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| | However, we have found that the line
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| heritage--as timeless and valuable as
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| | between those of our clients that are
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| history itself. For two centuries, U.S.
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| | collectors and those that are investors
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| coins have been symbols of American
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| | has become increasingly blurred.
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| stability, as well as reflections of
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| | Collectors can't help but be pleased when
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| national pride. Throughout our nation's
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| | coins that they sell bring an attractive
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| history, coins have spotlighted our
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| | profit. Investors begin to see their
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| national heroes, paid tribute to our
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| | coins as works of art and become
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| great achievements and commemorated
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| | knowledgeable about the circumstances of
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| significant events. These truly historic
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| | their minting and the era in which they
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| works of art commemorate past sacrifices
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| | were circulated.
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| made in the name of freedom.
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| | Both collector and investor come to
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| Rare U.S. coins acquaint investors with
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| | realize that their intellectual
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| historical figures and events, no matter
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| | curiosity, aesthetic sensibilities and
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| how far removed by time. The satisfaction
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| | enjoyment in our country's past can be
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| of actually owning a piece of history
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| | used to create a collection that becomes
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| from a bygone era makes investing in rare
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| | an important store of value, a way to
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| U.S. coins truly unique. Each coin has
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| | accumulate wealth that can be passed on
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| traveled a different path through
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| | to future generations--or used to fund
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| history. As a result, each is a unique
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| | their own retirements.
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| embodiment of the hopes and dreams of our
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