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