Risk Factors and Investment Considerations
1. AUTHENTICITY RISKS. Forgery and counterfeiting are risks associated with the purchase of rare coins. To minimize these risks, it is recommended that investors only buy coins certified by one of the leading independent coin grading services. With the exception of certain uncertified circulated coins, each coin sold by The United States Gold Bureau (USGB) has been graded by either the Professional Coin Grading Service ("PCGS") or by Numismatic Guaranty Corporation ("NGC"). Each of these coin grading services is recognized within the coin grading industry for its superior expertise, and each guarantees unequivocally that coins certified by it are authentic. USGB relies upon those guarantees in selling coins, and does not independently verify whether certified coins are authentic. Accordingly, The United States Gold Bureau expressly disclaims any expressed or implied warranties associated with the coins, including that the coins are merchantable.
2. GRADING RISKS. The value of a coin is highly dependent upon the condition, or "grade" of that coin. Since grading is a subjective process, there is risk in acquiring coins whose grades have not been independently certified by one of the leading independent coin grading services. The possibility exists that a coin could be misgraded by one of the independent grading services, and it is possible for such services to assign a different grade to the same coin upon resubmission. The guarantees provided by such services provide protection against misgrading, given the continuing solvency of the services. The United States Gold Bureau cannot be responsible for any of the services' guarantees, or for subsequent changes in their policies and expressly disclaims any express or implied warranties associated with the grades assigned by PCGS and NGC.
3. VOLATILITY. The coin market is subject to substantial fluctuations, including significant and rapid increases and decreases in value from time to time. Investors must be able to assume the risk of such price fluctuations.
4. INVESTMENT PERFORMANCE. During the period in which relatively accurate statistics have been maintained, many rare coins have shown an excellent record as appreciating assets. The United States Gold Bureau believes that rare coins are excellent long-term investments, but the future is never certain. The past performance of coins is a guide, not a prediction, of future events. The United States Gold Bureau is always prepared to assist you in selecting coins for your portfolio or collection. You understand, however, that the decision to purchase coins, and which coins to purchase, is ultimately yours alone.
5. UNREGULATED STATE OF THE RARE COIN MARKET. The coin market is not subject to some of the forms of governmental regulation applicable to other forms of investment. Conversely, there can be no assurance that, in the future, regulations which materially affect the coin market will not be imposed. At present, there are no restrictions on the ownership of rare coins, and rare coin ownership offers certain tax and privacy advantages. However, there is no guarantee that, in the future, these benefits will not be restricted or totally removed by government regulation.
6. BID PRICE. The United States Gold Bureau is a major buyer of rare coins. If you wish to sell your coins in the future, USGB encourages you to offer them to USGB first, although the United States Gold Bureau cannot guarantee to make a bid on every coin. Should USGB make a bid on your coins, it is The United States Gold Bureau's current practice, which is subject to change at its sole discretion, to offer to buy coins that we commonly sell during our normal course of business. The bid price is raised or lowered on a daily, even hourly basis, depending upon various market conditions.
7. ECONOMIC FORCES. The success of an investment in rare coins is dependent, at least in part, upon extrinsic economic forces including supply, demand, international monetary conditions and inflation, or the expectation of inflation. The impact of these forces on the value of coins cannot be predicted with any certainty. No assurance can be given that an investor will be able to sell his or her coins at a price greater than or equal to their acquisition cost. Please note: All investments involve risk, and coins, currency and bullion are no exception. The precious metals, rare coin, modern rare coins, and rare currency markets are speculative, unregulated and volatile and prices for these items may rise or fall over time.
The United States Gold Bureau (USGB) does not guarantee that any client buying for investment purposes will be able to sell for a profit in the future. The value of raw bullion and raw bullion coins (e.g., PAMP Suisse gold bar, raw Gold American Eagle, raw Silver American Eagle, Canadian Maple Leaf, South African Krugerrand, etc.) is largely determined by the current spot or market price of bullion. This price fluctuates throughout the trading day.
The value of a numismatic or rare coin is determined by multiple factors which can and do fluctuate independently from bullion prices. These factors include: the perceived scarcity of the coin, its quality, current demand, market sentiment, and economic factors. Bullion, rare coins and rare currency can go down as well as up in value. These items may not be suitable for everyone.
USGB does not determine the suitability of any specific person to purchase rare coins, bullion or rare currency. You should consult with your independent financial advisor regarding whether an investment in rare coins, modern rare coins, bullion or rare currency is right for you. You should not acquire any products from USGB if you are not qualified to make your own financial decisions. You should obtain a thorough understanding of the coin and bullion products before you acquire these products as a collector or investor.
The investment value of a rare coin depends in large part on the price you pay. If you are acquiring any of USGB’s products as an investment, you should evaluate its current market value, potential for appreciation and liquidity and consult independent sources regarding these factors. Since rare coins, modern rare coins, bullion and rare currency can decline in value, you should have adequate cash reserves and disposable income before considering acquiring a coin, currency or precious metals product. We do not recommend early withdrawal from accounts or securities which may result in substantial penalties or fees.
You should consult with your independent financial advisor before disposing of any security, annuity, Certificate of Deposit or other investment to acquire rare coins, modern rare coins, currency or bullion. USGB is not responsible for any changes in tax laws or other statutes which may affect any profit or salability of your coins or currency.
Notice: The Account Representatives and Numismatic Specialists at The United States Gold Bureau (USGB) are generally compensated through commissions. Their commissions are usually greatest on rare coins, semi-numismatic coins, and modern rare coins as these products involve much more time and effort to procure, assemble, and maintain in a secure facility over their hold period by the company. Their commissions are least on bullion related products. Their work experience, knowledge, background and training vary widely. They may receive, from time to time, undisclosed compensation for recommending specific coin or currency products.
USGB employees are not licensed as investment advisors and are not authorized to recommend the purchase or sale of any product or investment other than the products -- specifically collectible products -- sold by USGB. Check with a licensed professional with expertise in a particular market before making a decision to buy or sell any security, bond, annuity or financial instrument.
Further, Account Representatives are not tax advisors and may not provide any advice regarding taxability, tax rates or related issues for any product USGB sells. You should consult with your tax advisor regarding any questions about the tax implications of buying or selling bullion, rare coins, modern rare coins, or currency.
