ASSET DIVERSIFICATION:
We, at United Rare Coins & Precious Metals, LLC (“United”), adhere to the old saying that one should not put all his eggs in the same basket. Smart investing requires diversification so as to spread the risk. We recommend that investment in rare coins and bullion not exceed 20% of an investor’s portfolio. We encourage our clients to seek independent financial advice from qualified institutions before acquiring rare coins and/or bullion that exceeds 20% of the entire portfolio. A well balanced portfolio should also contain securities, equity and fixed income products.
WHAT YOU NEED TO KNOW BEFORE BUYING OR SELLING GOLD OR OTHER PRECIOUS METALS:
We, at URC have always urged our clients to become educated and do their due diligence before buying. Gold comes in many shapes and sizes and no one shape or size fits all. There is no one right purchase for every buyer. It all depends upon one’s objectives, time frame to hold and risk tolerance. The age of the purchaser, his asset base and employment status are important considerations. Gold, as a safe haven or hedge against inflation is a great concept if properly utilized and it can indeed protect against the weakening dollar and can in fact serve as a hedge against other assets declining in value..
Whether bullion in the form of coins, bars or otherwise is the right type of investment depends upon the buyer. Gold bullion—which has its value strictly in the value of the metal, trades with the spot gold market and is often affected by global or National economic developments, conditions, and news. On the other hand, gold in the form of pre-1933 Numismatic products trade both based upon the spot price on any given day (for the intrinsic value of the metal if melted) as well as other factors. Various degrees of premiums are attached to the purchase of each product— bullion or private gold.
Rare coins and scarce coins are valued upon factors other than merely the spot price of the metal. The condition of the coin, the mintage, the design and the historic sales or auction records affect resale value. As a matter of practicality, there is a lower premium attached to bullion than to private gold. No seller or reseller of gold to the public or the industry is a nonprofit enterprise. All are in business to make a profit. All pay to acquire the product they sell to the public. In turn, the premium that a gold seller charges a customer to purchase a product is generally less for bullion than for private gold.
All our premium ranges are disclosed in our brochure, in our educational documents, and on our website. Those premiums vary according to numerous factors, the primary one being supply and demand. When a customer gets ready to sell his holdings, he needs to overcome the spread or premium in order to make a profit. This is no different than a supermarket buying an apple for 50 cents and selling it to a customer for 60 cents. If the customer wants to sell the apple and make a profit, he needs to sell it for more than the 60 cents he was charged, irrespective of what the supermarket paid for the apple. The amount of profit the supermarket made—10 cents, in part goes to the cost of its lease, its employee wages, electric and other items of overhead. If the factors affecting the premium have changed from the time of acquisition to the time of customer’s sale, the ultimate price he realizes, may be positively or negatively impacted, irrespective of whether the spot price of the metal is higher or lower on the date of his resale than the date of his acquisition of the product.
Sometimes a customer gets ready to sell a product and realizes that he might have done better had he acquired private gold, a numismatic rarity or bullion with the same dollars than the product he decided to acquire. Sometimes, the educated investment turns out to be the right decision. Nobody has a crystal ball and nobody can predict with entire accuracy which type of product will in fact perform better than others in the time interval between acquisition and resale. Historically, however, gold has in fact outperformed the Standard and Poors Index and the stock market in general (see the charts and graphs in our materials).
graphs in our materials). Some potential clients have asked whether they can accomplish the same objective by buying gold stocks and what downside, if any exists for them to do this. While gold can certainly be purchased in the form of a stock certificate in a company, many clients have correctly pointed out that they would rather take physical possession of the actual gold, than to potentially be the victim of the horror stories we have all heard when a company goes bankrupt or even when the selling company offers to store your gold for you. United always delivers the gold to you by the US Postal Service, Brinks or other safe forms of delivery. We do not store it for you or give you a certificate. Even when purchasing shares of stock in a reputable gold refinery, the price of that stock is affected and sometimes drops based upon factors other than the price of gold. For instance, gold stocks may drop based upon how the company is run by the CEO, whether their overhead and expenses are too high, whether the CEO takes a multi-million dollar salary or whether the company buys a private jet for the CEO’s use. At United, we have a simple formula—we sell the product you think is the best match for you and you alone take delivery of it and hold it until you are ready to sell it or leave it to family as a part of the buyer’s estate. When you are ready to sell, you decide the timing and to whom you will sell and at what price. We will offer what we believe is a competitive price and our 1% liquidation fee on bullion buy backs, we believe to be very competitive and beneficial to our customers.
However, our customers are encouraged to shop the market and sell to whom they want, when they want and at the best price they are offered.
RECOMMENDED HOLDING PERIODS:
Both a purchase of rare coins as well as bullion should prudently be considered a long-term investment. While situations have historically existed where investors and collectors have made quick profits, we at United Rare Coins & Precious Metals, LLC, believe that a proper perspective for gain requires a long-term commitment of 3-5 year minimums and preferably between 5-10 years to maximize appreciation. Since ongoing and fluid market conditions affect the length of the holding period, it is impossible to say with certainty just how long a prospective holding period should be.
RETIREMENT ACCOUNTS:
Not all coins qualify to be held in an IRA. United Rare Coins & Precious Metals, LLC has the resources to provide our clients with appropriate referrals for trust and custodian services, but the ultimate decision is that of the client. Appreciation of assets held within an appropriate retirement account are not taxable by the IRS or the state until such time as the assets have been disbursed to the individual. We do not charge any additional fees or commissions on buybacks other than a 1% liquidation fee.
DELIVERY OF PRECIOUS METALS:
Unless your state of residency requires a different delivery, your purchase will be safely packed and shipped fully insured with a target delivery date not to exceed 28 days from our receipt of cleared funds. Unless otherwise specified in writing at the time of customer’s order, United shall cause all precious metals purchased and paid for to be delivered to customer’s address listed on the invoice. United only uses reputable nationally recognized delivery services to deliver its precious metals.
If, however, customer’s order is lost prior to delivery, customer is instructed to notify United, in writing immediately. Notice of any such alleged loss should be sent to: United Rare coins & Precious Metals, LLC, Attention: Customer Service, 15821 Ventura Blvd., Suite 590, Encino, CA 91436. If the delivery service verifies that customer’s precious metals were never delivered, United shall within forty-five (45) days of such verification, in its sole discretion, either refund to customer the full purchase price for such undelivered precious metals or replace such precious metals with other precious metals of the same denomination/type and grade.
United assumes no responsibility for precious metals lost after delivery to customer. United assumes no risk of loss for any precious metals purchased from a customer until such materials are delivered to and accepted by an authorized representative of United. In the unlikely event that the shipment delivered does not fully coincide with your order, such variance must be reported to us within 5 days of your receipt of the items. We ask that you save all the original packing materials.
LIQUIDATION:
If and when you decide to sell your coins, United will buy them back at the then current bid-buy price we establish. While you may always elect to liquidate your coins through other dealers, in a private transaction or at auction, we hope you will provide us with the opportunity to make you an offer that we believe will be better than you will receive elsewhere. We do not charge any additional fees or commission on buybacks other than a 1% liquidation fee on cash purchases and 5% on credit card purchases. Depending upon market conditions and your original purchase price, you may receive less than what you paid for the coins and currency. The bid or buy back price we establish is based on then current market conditions and in certain instances, United may no longer be recommending that product. The market price at the time of the sale may be greater or lesser than at the time of acquisition.
LIQUIDITY:
Of the products that we generally buy and sell, bullion and bullion coins are more liquid than semi numismatic coins and semi numismatic are generally more liquid than numismatic or rare coins.
RISK:
Every investment involves risk. An investment in coins and/or bullion are not exceptions to this general rule. Investment in rare coins, numismatic products, precious metals and bullion are speculative and sometimes volatile. Depending upon a myriad of factors, prices may increase or decline within a finite time. While certain individuals have been known to make guarantees that the investor will achieve a certain rate of return, United cannot and will not participate in such irresponsible representations.
Bullion and numismatic coins are as different as night is to day. Bullion (such as American Eagles, South African Krugerrands and Canadian Maple Leafs) has a value that is based upon gold content and purity and is directly affected by the active and daily market price of bullion by what is referred to as spot price. The current value of a rare coin of numismatic interest is also determined by a myriad of factors. These factors include but are not limited to the mintage, current population of the coin, the degree of its quality, the grade assigned to it by a grading service, the reputation of that grading service, the collector demand for that coin, the historic pricing of the coin in that particular condition, overall desirability, appearance and economic factors.
United Rare Coins & Precious Metals, LLC encourages our clients and prospective investors to consult with the appropriate financial advisors to determine the suitability of rare coin, numismatic product and/or bullion investments for you and your specific circumstances. Investment of your assets requires a complete understanding of the potential investment and the products you seek to acquire. The decision as to whether investment in rare coins and or bullion is appropriate for you is one that requires a complete financial analysis by an independent financial advisor. Factors which include your adequacy of liquid assets and the ratio of disposable income to all sources of income are appropriate considerations before an individual enters into any investment. Again, coins, bullion and precious metals are no exception. The proposed source of payment for any investment including an investment in coins, bullion and precious metals is one that appropriately requires independent financial advice. United does not recommend the premature withdrawal of funds from accounts, securities or other financial products which may result in penalties, fees or surcharges. An appropriate independent financial advisor can and should advise regarding this as well as the tax implications of any transaction before you make a decision to buy or sell.
PRICING:
Just as in any other business, the sale of coins, precious metals and bullion, involve a transaction cost. That cost is, in essence, the spread or price differential between the “ask” or selling price and the “bid” or buy-back price. A typical spread on bullion (American Eagles, Canadian Maple Leafs and South African Krugerrands) is approximately 5% to 20%, depending upon a myriad of factors including but not limited to the then current spot price.
United’s spread on numismatic products excluding rare or scarce coins have an approximate range between 20% and 40%, again depending upon various factors affecting market conditions and particular coins.
The price of all bullion purchases, including but not limited to coins & metals for IRA purchases, can only be locked in, at such time and on such date as payment for same has been received by URC as either a confirmed receipt of the customer’s wire transfer to the designated URC bank account or by the customer’s check clearing the bank on which the funds are drawn. The price of a bullion product is based upon the spot price of the gold, silver, platinum or other precious metal plus the agreed premium above same. The spot price of all such precious metals may vary (higher or lower in U.S. Dollars) between the date of the telephonic or other means of order by the customer and the date and time of the receipt of payment in the manner referred to hereinabove. It is the later date, upon which the purchase price is locked in for the customer’s purchase and during URC regular business hours, Pacific Standard Time.
Another consideration when contemplating coins as a long term investment (see “Recommended Holding Period” above) is that in order to realize a profit on the sale of your coins, there must have been sufficient time for them to appreciate so as to overcome the above price differential and any applicable premium.
It is important to note that United’s profit before its operating expenses may or may not exceed the spread. The prices charged by United may not remain the same from day to day based upon various market conditions.
EXCHANGE TRANSACTIONS POLICY:
United discourages the exchanging of rare coins for others. The purchaser must be fully cognizant and consider all transactional costs, including but not limited to the buy and sell costs. Since the person exchanging must necessarily overcome both spreads before making a profit, it is essential that he or she fully understand the costs involved in both the buy and the sell transactions. There is no absolute certainty that one particular product will outperform another and for this reason, United strongly encourages the potential investor to seek independent financial advice as to whether the particular transaction he entertains, is in fact appropriate for him in all regards.
OUR REFUND POLICY:
United has a “no questions asked” refund policy for numismatic coins, as specifically described herein. United’s customers may, for any reason whatsoever, request a refund on their first purchase only for numismatic products (not bullion purchases). To be eligible for the refund, United must be notified in writing by the purchaser of the request to rescind the initial transaction within (7) days from the date the written purchase confirmation is postmarked by the USPS to the customer or the date of delivery to a private delivery service (i.e. FedEx, DHL, UPS), whichever comes first. All other transactions are final upon mailing of the customer’s order. Your state of residency may have rules which are more expansive and/or superseded United’s refund policy; and in such event, those rules may apply.
In the event the client does not pay for his or her order and does not cancel or rescind as stated hereinabove, United may elect to liquidate all or some of the client’s stored holdings and apply the proceeds of the sale of same to the client’s unpaid order. In the event of such a breach by the client, United need not re-purchase any such coin(s).
BUY-BACK POLICY:
It is a violation of the law for United to guarantee the repurchase of any particular coin sold by us. Please note, however, that while we are prohibited from making such guarantee, we will provide bid or buy-back price which the client, in his sole discretion, may choose to accept, as payment for selling the coin back. We do not charge any additional fees or commissions on buybacks other than a 1% liquidation fee on cash purchases and 5% on credit card purchases. Depending upon market conditions and your original purchase price, you may receive less than what you paid for the coins and currency. This buyback policy is not guaranteed and hence, subject to change and/or elimination. Regarding bullion transactions, bid or buy-back prices will be quoted upon request. Our bid or buy-back policy is not standard or uniform. Prices quoted to customers for the resale of coins purchased from United may in fact be at a bid price greater than the price that is quoted to individuals who did not purchase those coins from United. In regard to rare coins, we strive to offer the highest price for bids to repurchase inventory.
GRADING:
United utilizes the industry recognized Mint State (MS) grading system which identifies the condition of coins (and uncirculated coins identified as MS-60 to Ms- 70). Among considerations affecting the value of a coin, is the grade assigned to it. Grades depend upon the subjective opinion of the person doing the grading and it is designed to reflect considerations including the strength of the strike, any marks, hairline scratches, and the overall eye appeal of the coin, for better or worse. It has been said that beauty is in the eye of the beholder. Hence, the numerical grade can vary depending upon the rare coin grading service and the particular expert rendering an opinion by assigning the numerical grade. Because a difference in one grade point can substantially affect the market value of a rare coin, United traditionally relies upon the expert opinion of well regarded and well reputed grading services such as Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC). Over the years, grading standards have evolved and changed. Some have become more stringent and some less. The numerical assignment of grade is not a guarantee but rather a subjective opinion. In the event you purchase a coin from United that has been graded by PCGS or NGC, United has relied upon the expertise of the grader in determining the particular grade assigned. United does not render any independent evaluation as to the numerical grade assigned by the grading service.
GENUINENESS AND AUTHENTICITY:
United Rare Coins & Precious Metals, LLC does guarantee that the rare coins and other numismatic items it sells are in fact genuine and authentic in all regards.
REMEDY FOR CUSTOMER’S FAILURE TO PERFORM:
If Customer refuses to accept delivery of the Precious Metals ordered or fails to make payment when due, United, in its sole discretion, may cancel the transaction and resell such precious metals. If the proceeds from such resale are less than the contract price with customer, United shall be entitled to recover from customer the difference between the resale price and customer’s contract price, plus any incidental damages occasioned by customer’s breach. If the proceeds from such resale are more than the contract price with customer, United shall be entitled to keep the excess amount as liquidated damages—actual damages being too speculative to calculate at this juncture.
ACCOUNT EXECUTIVES:
United Rare Coins’ account executives receive their compensation based upon commission and sales. Numismatic and rare coin purchases ordinarily provide the greater commissions and the sale of bullion products (Canadian Maple Leafs, South African Krugerrands, and American Eagles) provide lesser commissions. United’s account executives come from varying backgrounds. Their employment background, level of education, degree of expertise, training and overall knowledge vary. The account executives are not licensed investment advisors and are not qualified or authorized to recommend or comment on the appropriateness or fitness of any investment, product or sale of any investment product other than the products that are to be sold by United. United strongly encourages prospective investors to consult with licensed professionals who have expertise in the particular field of inquiry prior to making a decision to purchase or sell any financial or related instrument, including but not limited to fixed assets, securities, bonds, insurance products, financial instruments, precious metals, bullion, numismatic products and rare coins.
GROWTH PROJECTIONS:
United Rare Coins & Precious Metals, LLC, in its brochure, website, through account representatives or otherwise, may from time to time advise clients and prospective clients relative to forecasts made by third parties and/or representatives, employees, staff and/or affiliates of United Rare Coins & Precious Metals, LLC relative to future prices of rare coins, numismatic products, precious metals and bullion. In providing advice or projections, United does so with consideration of the following factors:
PAST PERFORMANCE:
While past performance is a useful guide, it is one of many factors to be considered and is not a guarantee of future results. There is a frequent assumption that if particular coins or bullion made gains historically under certain economic conditions, that a potential exists for economic value appreciation when similar conditions appear in the future.
ECONOMIC FORECAST:
While it is impossible to predict price trends or economic conditions, we do, however apply research, common sense and logic as a means to forecast future trends. These trends are, in our belief, a guide to be considered in evaluating the future economic potential for rare coins and bullion.
SUPPLY AND DEMAND:
The basics that have historically affected fundamental market forces are in our belief, to be taken into consideration in regard to the forecast of future trends of supply and demand. No person can accurately guarantee that growth potentials will be achieved and economic conditions as well as other factors in society and the economy may cause prices to decline. While United does not and cannot guarantee its forecasts or projections, we do, however, set our goals high in providing the client with an analysis that is thoughtful as well as reflective of our opinion.
PROTECTION AND ACCURACY:
Telephone calls may be monitored and/or recorded to assure quality control and full compliance with policies and procedures of United Rare Coins & Precious Metals, LLC. This is for customer protection and to assure accuracy and eliminate misunderstandings in orders that are placed.
We value your privacy and if at any point in time you no longer wish to be contacted by a United Rare Coins & Precious Metals, LLC representative, please call or write us and ask to be placed on our Do Not Call list.
Should you ever receive information that is inconsistent or contrary with the information contained herein, please immediately so advise United Rare Coins & Precious Metals, LLC Director of Marketing at (800) 615-1513. In the event you have any questions or concerns regarding a particular transaction, we urge you not to proceed with it until your questions have been fully answered to your satisfaction or your concerns have been eliminated.
All payments should be paid only to United Rare Coins & Precious Metals, LLC. You may pay by bank wire, certified check, cashier’s check or personal check. Please do not send cash, money orders or traveler’s checks. Note that all forms of payment other than a wire transfer are subject to a 10 business day hold.
All coins, bullion and/or precious metals must be sent to URC&PM (do not mention Coins or Metals on shipping container), 15821 Ventura Boulevard, Suite 590, Encino, California 91436. All such mailing should be registered mail, return receipt requested and fully insured by you. In regard to safe packing requirements, please check in advance with your account representative. In order to assure prompt and safe mailing of our products to you, we request that you promptly notify us in writing in the event you change your address. In order to protect against identity theft, it is requested that such written notification be signed by you and notarized with a copy of your driver’s license or recent utility bill. Please include your account number on all such correspondence.
Price Guarantee
United strives to sell similar products for prices that are lower than our competitors. If requested, we will direct prospective clients to the websites of competitors to compare and determine for themselves. Consumers are encouraged to educate themselves thoroughly and not rely upon the representation of any individual as to the appropriate pricing of any product. United does in fact have the resources and ability to sell most typically offered products in either small or large quantities. All prices for precious metals depend upon the market conditions at the time of purchase. The spot price of gold or any particular metal is just one of many factors that will determine the price that a particular metal will be offered to a consumer. United both buys and sells precious metals. Depending upon the particular metal and the source and price of acquisition, United from time to time offers inventory to other dealers and resellers as well as to the general public. From time to time, prospective customers report to us that they have been offered the same product for a lower price. United encourages the client to verify that in fact the other seller is in fact selling the identical product including weight, date, grade and manufacturer of the coins or metals as well as whether the other seller truly has the product to sell and can immediately provide same to the consumer. These and other factors affect the value and pricing of a particular product. In the event a prospective client believes he or she has in fact, received a better price than United has offered, we encourage the prospective client to call and discuss the alleged offer, so that we may verify and advise whether or not the offer is for the identical product of identical value of whether United can offer that a product at a lower price.
FINALITY; INTEGRATION CLAUSE:
These terms are intended by United and customer as a final expression of their agreement concerning the matters set forth herein, and is also intended as a complete and exclusive statement of the terms of their agreement. These terms superseded any oral or written statement made prior to, contemporaneous with, or in the future regarding this transaction or the transactions covered hereunder. Customers shall not rely upon any statement made by or on behalf of United Rare Coins & Precious Metals, LLC that is inconsistent with this agreement.
DISCLAIMER OF EXPRESS AND IMPLIED WARRANTIES:
Except as specifically set forth herein, the items sold by United are sold on an “as is” basis and United makes no warranties, express or implied, and specifically disclaims any warranty of merchantability and or fitness for a particular purpose.
CONSEQUENTIAL DAMAGES; LIMITATION OF LIABILITY:
In no event shall United have any obligation or liability (whether in tort, contract, warranty, or otherwise, and notwithstanding any fault, negligence, or strict liability), for any indirect, incidental special or consequential damages sustained or arising from or related to any transaction, and whether or not United has knowledge of the potential for such damages. Further, United’s liability to customer for any reason and upon any claims shall at all times be limited to the amount actually paid by customer for the items in dispute.
CHOICE OF LAW:
Any and all transactions between customer and United shall be governed by the laws of the State of California.
JURISDICTION AND VENUE:
Jurisdiction and venue for any dispute, claim or controversy arising out of or relating to this or any other transaction between United and customer shall be in Los Angeles, California and any party making a claim against United hereby submits to personal jurisdiction in that forum for any and all purposes.
MEDIATION:
United and customer agree to mediate any dispute or claim arising out of any and all transactions between them, before resorting to arbitration or court action. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences an action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then the other party shall be entitled to an award of all recoverable costs incurred (attorneys’ fees not included) in litigating the dispute, without regard to the identity of the prevailing party.
ARBITRATION OF DISPUTES/TIME LIMITATIONS:
Any dispute, claim or controversy arising out of or relating to any and all transactions between United and Customer, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, or any other dispute, claim or controversy arising out of any interaction between United and Customer, shall be brought within one year of its accrual. United and Customer agree that any dispute or claim in law or equity arising out of any transactions between them, which is not settled through the mediation, shall be decided by binding arbitration, before a single neutral arbitrator on the Southern California Panel of ADR Services, Inc. The arbitration shall be administered by ADR Services, Inc. pursuant to its arbitration rules and procedures. Judgment on the award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies from a court of appropriate jurisdiction.
CONCLUSION:
United Rare Coins & Precious Metals, LLC urges you to do your due diligence and develop a sound appreciation of rare coins, numismatics, precious metals, bullion and their markets prior to making your first purchase. It is essential that you understand the market as well as the numerical grading system. You can and should protect your future with a diversified portfolio that Is consistent with your objectives and your individual investor profile. Seeking the advice of an independent financial planner and not committing more than 5% to 20% of funds allocated for investment into rare coins, bullion and precious metals is well advised. Safety, liquidity and growth can only be achieved through knowledge and proper advice. Be ready to seek out experts in the areas of your financial interest. Likewise, the rare coin and precious metals market like other markets is subject to fluctuation and from time to time both increases and decreases in value. Be prepared to hold your coin, bullion and precious metals investments for a minimum of 5 years. Investors must be able to assume the risk of price fluctuations. Both knowledge and due diligence are essentials to a solid foundation prior to any investment whatsoever.
