Coin Facts for Investors And Collectors to Consider

ABOUT GOLDLINE

Goldline International, LLC. assists investors and collectors with a full range of numismatic coins, rare currency, and precious metals. We also provide free information to help collectors and investors choose their acquisitions. Our website contains helpful information such as precious metal spot prices, charts and coin information for our more popular precious metals products.
Goldline traces its corporate history to 1960. We are proud to have continuously served collectors and investors for more than 50 years. We consider ourselves "market makers," offering to buy and sell a wide variety of precious metals and numismatic coins on a daily basis.
When acquiring products from Goldline, clients have the option of either taking prompt delivery or storing their acquisitions with a third party storage facility (some restrictions may apply).
We are proud of our staff. They include numismatists, editorial and pricing consultants and public speakers discussing the benefits of owning numismatic coins and precious metals.
With a strong financial footing, Goldline has prospered through recessions as well as booms. Goldline's financial statements are audited annually by a recognized independent certified public accounting firm.
We are a recognized leader in the precious metals industry and pride ourselves on excellent service and personalized attention to our clients.
We offer precious metals, numismatic coins and currency which are fully guaranteed for authenticity. Goldline provides a seven (7) day unconditional money back refund privilege on your first order on all coins purchased from our company except for certain bullion bars and one ounce bullion coins. (See our "Refund Policy" and our Account Agreement for full details).
We are proud of our reputation in the coin community. We invite you to check our credentials and our reputation. Conduct your due diligence before you acquire numismatic coins, precious metals and rare currency from any firm. Please also review Goldline's Account Agreement which provides additional important information. We are confident that Goldline will be your choice for numismatic coins, precious metals and rare currency.

FACTS, RISKS AND POLICIES COLLECTORS AND INVESTORS SHOULD KNOW

DIVERSIFICATION: Numismatic coins and precious metals can be an important part of a diversified investment portfolio. We believe that numismatic coins and precious metals are appropriate for 5% to 20% of an investment portfolio. (If you choose to invest more than this amount, you should first consult your independent financial advisor before proceeding with your acquisitions.) Certain individuals or organizations may recommend a different percentage.

HOLDING PERIOD: If you are purchasing numismatic coins, precious metals or rare currency for investment purposes, they should be considered a long-term investment. We believe that numismatic coins, precious metals and currency should be held for at least 3 to 5 years and, preferably, 5 to 10 years to maximize your potential for gains. Any specific holding period may be affected by current market conditions which may require a longer or shorter holding period. See our Risk section for additional information.

OUR PRICES: Our prices are set internally based upon our analysis of a variety of factors and are not necessarily tied to the prices quoted by any other organization. Prices are subject to change based on market conditions. Goldline acts as a dealer and generally owns the coins and precious metals it buys and sells.
To understand Goldline's pricing, here are definitions of some commonly used terms.

Ask: The ask price is the price Goldline sells coins and other precious metals to its clients. The ask price is also known as the selling price.

Bid: The bid price is the price that Goldline pays to purchase coins and other precious metals from its clients and members of the general public. The bid price is also known as the buyback price. (See our Liquidation/Buyback Policy for additional information on Goldline's bid prices.)

Spread: The "spread" refers to the difference between a coin or precious metal's ask price (i.e., the selling price) and its bid price (i.e., the buyback price). The spread is calculated by subtracting the bid price from the ask price and dividing the difference by the ask price ((Ask ? Bid)/Ask).
To illustrate how the spread works, consider the following example. If the spread for a coin is 28% and Goldline's ask/selling price is $500 for the coin, then Goldline's bid/buyback price is $360. In this example, a coin's bid price would have to appreciate $140 ($500-$360), or approximately 38.88%, before breaking even (excluding other costs such as liquidation or delivery fees).
Goldline's current spread for 90% silver dimes and quarters, one ounce bullion coins and one ounce and larger bullion bars is 13%. The bid price of a coin or bar with a 13% spread must increase 15% before breaking even (excluding other costs such as liquidation or delivery fees).
All other products currently have a spread of 28%. Examples of coins with a 28% spread include pre-1933 gold American coins, European gold coins, proof coins, fractional gold bullion coins and Morgan and Peace silver dollars in all grades. The bid price of a coin or bar with a 28% spread must increase approximately 38.88% before breaking even (excluding other costs such as liquidation or delivery fees).
If Goldline's spreads or the percentage that a bid price must increase for a coin or bar to break even differs from these stated amounts, Goldline shall disclose such differences at the time the order is confirmed.
If you choose to sell your coin or bar back to Goldline, you must also pay a 1% liquidation fee on our bid price (the minimum liquidation fee is $25). Purchases in an amount less than $2,500 are subject to a small lot fee of $25.

IRA ACCOUNTS: Goldline may refer clients to companies that provide trustee and custodian services for Individual Retirement Accounts ("IRA"). Goldline is independent from and not affiliated with any of these IRA companies. The client is responsible for independently selecting the IRA company suitable for the client. Goldline does not share or assume responsibility for any loss or damage resulting from a client's relationship with the IRA company.
Goldline does not recommend that clients invest more than 5%-20% of their retirement assets/portfolio (which may include a variety of asset classes including IRAs, 401(k)s, real estate, stocks, bonds and other investments) in precious metals and numismatic coins although other organizations and individuals may recommend different percentages. You must determine the proper percentage of precious metals and numismatic coins to allocate in and outside an IRA based upon your individual circumstances.
Only certain bullion coins and bars and proof coins may be held in a precious metals IRA. Many clients choose to purchase proof U.S. coins for their IRAs. The price of proof coins may be affected by factors other than changes in precious metals spot prices. See "Our Prices" section for more details of the different spreads charged for proof and bullion products.
Tax laws are complex and may change at any time. Goldline does not provide tax advice. You should consult with your tax advisor about whether including precious metals in your IRA is right for you.

LIQUIDATION/BUYBACK POLICY: When you decide to sell your coins or currency, we appreciate the opportunity to purchase them at our current bid/buyback price. Although you are free to sell to other coin dealers, we believe it is likely that you will receive a higher net amount by selling to us because we are familiar with the quality and marketability of the items we sell and do not charge any additional fees or commissions other than the 1% liquidation fee. Depending upon market conditions and your original purchase price, you may receive less than what you paid for the coins and currency.
The law prohibits us from guaranteeing to repurchase the coins we sell although we have always made buy-sell markets in precious metals and numismatic coins we offer. Therefore, our buyback policy is not a guarantee and is subject to change without notice. It is our policy to offer to repurchase coins sold by us at our current bid/buyback price. A lower bid price is generally offered for products not originally sold by Goldline. While our company is not obligated to do so, we continue to make a market for the coins we sell, have historically done so, and intend to continue to do so in the future.
Liquidation requests may be made to your Account Executive or by calling Client Relations at 800-280-5082. You may also contact Client Relations via email at clientconcierge@goldline.com.
All metal/coins/currency must be sent U.S. Postal Service (registered insured, return receipt requested). Please contact Client Relations or your Account Executive for Goldline's packaging and address requirements prior to sending any precious metals, numismatic coins or currency to Goldline.
Please see the section entitled "Liquidity" for more information regarding the sale of precious metals, numismatic coins and rare currency.

DELIVERY: All packages shipped to our clients are insured (shipments of less than $1,000 are self-insured by Goldline). Your acquisitions will be delivered within 28 calendar days of receipt of good funds (unless your State requires a different delivery period). If a shipment is lost or damaged prior to delivery at your shipping address, at Goldline's option, we will either replace the items or refund your purchase price. Please inspect the shipment thoroughly upon receipt to ensure you have received your order and that the items track the description on your delivery invoice. Any variance from your order must be reported within (5) days of receipt of your shipment and you must have all original packing materials intact. Any claim beyond this time period may be denied. Goldline may charge a shipping and handling fee for shipments including shipments to independent IRA custodians. The amount of this fee, if any, will be identified at the time your order is confirmed.

STORAGE: Goldline stores client holdings in a depository of its choice and may change depositories without prior notice. Goldline may co-mingle your holdings with those of other clients and acknowledges that you own a specific, but undivided interest in such holdings to the extent of the quantity and type you have purchased. A fee is charged for storage. Details and limitations can be found in Goldline's Account Agreement.

CREDIT CARD PURCHASES: Goldline accepts payment by credit cards as a convenience to its clients. However, we believe that you should not go into credit card debt to make a purchase with Goldline.

RISK: All investments involve risk - coins, currency and bullion are no exception. The precious metals, numismatic coin and rare currency markets are speculative, unregulated and volatile and prices for these items may rise or fall over time.
Goldline generally classifies coins as bullion, semi-numismatic and numismatic. Some coins may fall within more than one category depending on its specific grade or condition. Other dealers and organizations may define these terms or classify these coins differently.
The price of a bullion coin (e.g., Canadian Maple Leaf or South African Krugerrand gold coins) is largely determined by the current spot or market price of bullion. This price fluctuates throughout the trading day.
The price of a semi-numismatic coin (e.g., Swiss 20 Franc, French Rooster and British Sovereign) is based upon the precious metals content along with a premium based upon different factors such as supply and demand. The price fluctuates throughout the trading day principally due to changes in the spot or market price of the precious metal.
The price of a numismatic 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.
Coins generally have a premium above their precious metal value with bullion coins usually having the lowest premium and other coins having higher premiums. Premiums may increase or decrease based upon current market conditions such as supply and demand. Changes in premiums may affect a coin's pricing beyond changes in spot prices.
Precious metals, numismatic coins and rare currency can go down as well as up in value. These items may not be suitable for everyone. Goldline does not determine the suitability of any specific person to purchase precious metals, numismatic coins or rare currency. You should consult with your independent financial advisor regarding whether such an investment is right for you. You should not acquire any products from Goldline if you are not competent or 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 precious metals and numismatic coins depends in large part on the price you pay. If you are acquiring any of Goldline's products as an investment, you should evaluate its current market value, potential for appreciation and liquidity and consult independent sources regarding these factors. Goldline does not guarantee that any client will be able to sell precious metals or numismatic coins at the original purchase price or a higher price in the future.
Since numismatic coins, precious metals and rare currency can decline in value, you should have adequate cash reserves and disposable income before considering acquiring coins, currency or precious metals.
We believe you should not acquire precious metals with funds generated through 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 numismatic coins, currency or precious metals.
Goldline is not responsible for any changes in tax laws or other statutes which may affect any profit or salability of your coins or currency.

EXCHANGE TRANSACTIONS: Goldline does not recommend exchanging precious metals or numismatic coins (trading one coin or currency for another) unless you fully understand the costs involved in the buy and the sell transactions. Among other things you should consider the spread for each item involved in any exchange transaction (since you must overcome both spreads before you make a profit), and any potential tax consequences of the exchange. We believe no one can tell with certainty that one product is going to outperform another. You should independently decide whether this type of transaction is appropriate for you.

REFUND POLICY: For your protection and convenience, Goldline provides clients with the right to a refund on their first order for coins and currency without any reason whatsoever (this refund policy does not apply to orders for 90% silver dimes or quarters, one ounce or larger bullion bars, and one ounce bullion coins). To receive a refund, the client must notify Goldline of his or her cancellation of their first transaction within seven (7) calendar days from the date of order. By way of example, if a client's first order is placed on May 1, the client may cancel the order up to and including May 8. Notices of cancellation may be provided by speaking directly with an Account Executive, calling Client Relations at 800-280-5082, via U.S. Mail at 1601 Cloverfield Blvd., 100 South Tower, Santa Monica, CA 90404, facsimile at 310-319-0265, or email at clientconcierge@goldline.com. All notices of cancellation must be provided no later than the last day of the refund period. All other transactions are final upon taped confirmation by a Goldline representative and are not subject to cancellation. (Your State may have additional refund and cancellation rules which supersede Goldline's refund policy, above; please consult Goldline's Account Agreement as well as the terms and conditions set forth on the back of your trade confirmation for specific rules which may apply to your purchase.)
If you do not pay for your order and do not have a right to cancel, Goldline may at its option liquidate a portion of your stored holdings and apply the proceeds to your unpaid order in accordance with Goldline's Account Agreement. In addition, Goldline may not repurchase your coins or currency.

CONCIERGE: Goldline's Client Relations team members are your personal concierge and are available to answer any questions or concerns you may have. In addition to speaking with your Account Executive, you may also contact Client Relations regarding refunds, liquidations, concerns or complaints. You can reach a Client Relations team member at 800-280-5082 or via email at clientconcierge@goldline.com.

ACCOUNT EXECUTIVES: The Account Executives at Goldline are generally commissioned salespersons. Their commissions are usually greatest on products with a 28% spread and lowest on products with a 13% spread. Their work experience, knowledge, background, and training vary widely. They and/or Goldline may receive, from time to time, undisclosed compensation for selling specific coin or currency products (including but not limited to contests, cooperative advertising, and trading profits in coins that they may own and/or sell). Goldline's employees are not licensed as investment advisors and accordingly do not make any recommendations regarding client investments. The only products which Goldline employees are authorized to sell are the products specifically sold by Goldline. 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 Executives are not tax advisors and may not provide any advice regarding taxability, tax rates or related issues for any product Goldline sells. You should consult with your tax advisor regarding any questions about the tax implications of buying or selling bullion, numismatic coins or rare currency.

LIQUIDITY: Of the products that we buy and sell, bullion and bullion coins generally are more liquid than semi-numismatic coins, and semi-numismatic coins are more liquid than numismatic coins. Goldline may not provide a "bid" or "buyback" price on some collectible coins. Sometimes, because of its market influence, when Goldline reduces or stops selling certain coins, its price may drop.

GRADING AND WARRANTIES: Our company uses the numerical Mint State (MS) grading system which rates uncirculated rare currency and uncirculated coins from MS-60 to MS?70. Typically, the higher the grade, the more a coin or currency is worth. The grade assigned to a coin reflects its strike, luster, marks, scratches, and overall eye appeal. Grading is a subjective art and subject to the opinion of the person grading the coin or currency. Thus, grading can and does vary from numismatic coin firm to numismatic coin firm, from grading service to grading service, and from expert to expert. A difference of one grade (e.g., MS64 to MS65) can result in a significant change in the valuation of a numismatic coin or currency. Grading standards may continue to change, becoming more or less stringent. Grades and descriptions of numismatic coins and currency are opinions, not statements of fact or guarantees, and are based on standards and interpretations that can and do change over time.
When you acquire a coin or currency from Goldline that is independently graded by a third party grading service such as Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC), Goldline relies entirely on the expertise/determination of the grading service. In addition, we rely upon definitions provided by these independent grading services, including definitions of such terms as PCGS' "First Strike®" which refers to coins packaged and delivered by the U.S. Mint in the 30 day period following the initial sales date of a new product. We do not re-grade or independently evaluate the product's grade in its sealed holder, although from time to time Goldline does remove products from their sealed holder and re-submits them to the grading services. Goldline reserves the right to deliver independently graded coins that have been graded by an independent grading service of Goldline's choice such as PCGS or NGC. Goldline guarantees that the numismatic coins and precious metals it sells are genuine. Goldline expressly disclaims any other warranties with respect to coins or precious metals, express or implied, including the implied warranties of merchantability and fitness for a particular purpose. See our Account Agreement for a full disclaimer of warranties.

GROWTH PROJECTIONS: Goldline may inform clients about forecasts made by third parties regarding the future prices of precious metals or numismatics sold by Goldline. In noting these forecasts, Goldline will normally consider the following factors:

• Past performance. While past performance may be a useful guide, it cannot guarantee future results. We frequently infer that if numismatic coins or precious metals made gains under certain economic conditions in the past, they have the potential to appreciate when similar conditions exist in the future.
• Economic forecasts. It is impossible to predict future price trends or economic conditions. However, we believe trends may be a useful guide in evaluating the future potential for numismatic coins and precious metals.
• Supply and demand. We believe that fundamental market forces will generally prevail.

There is no assurance that any growth projection will be achieved and it is also possible for prices to decline. We do not guarantee any forecast or projection, but we strive to provide you with analysis that we believe is well reasoned.
You should also know that different market factors may influence the price of a specific coin or currency. For example, the price of a numismatic coin may be affected by such factors as grade, scarcity and demand in the marketplace while the price of a bullion coin is closely tied to the spot market for that coin. Past performance and growth projections for a specific coin or type of coin (or currency) may not apply to other types of coins that Goldline may offer.

ACCOUNT AGREEMENT: Goldline's Account Agreement sets forth the terms and conditions of your transactions with Goldline. Please review this agreement carefully before you sign and return it to Goldline. For your convenience, you may review the Account Agreement online at www.goldline.com.

FOR YOUR PROTECTION: Telephone calls may be monitored and/or recorded in an effort to assure quality control and policy compliance.
Your privacy is important to us. If at any time you no longer wish to be contacted by a Goldline representative, please call or write to us and ask to be placed on our Do Not Call list.
If at any time you receive information that is inconsistent or contrary to the information contained in this booklet or Goldline's Account Agreement, you should immediately contact Goldline's Client Relations Department at 800-280-5082. Please do not proceed with any transaction until your questions or concerns have been fully answered.
Please make all payments payable to Goldline International, LLC. Please do not send cash. Your payment options are: Bank wire, cashier's check, personal check and credit card. Please do not send money orders or Traveler's Checks.
Please promptly notify us in writing if you change your address or want to change your account title and include a signature guarantee or notarized letter along with a copy of your driver's license or a utility bill. Be sure to include your account number and sign all correspondence.
This risk/disclosure booklet is updated periodically. It is the responsibility of the client to keep up to date by either requesting a copy or by checking our website at www.goldline.com.

SUMMARY: We strongly recommend that you acquire a sound understanding of precious metals, coins, and their markets before you make your first purchase. Be prepared to invest some time and effort into understanding the market and the grading of your coins or currency. Do not commit more than 5% to 20% of your investment funds to numismatic coins or precious metals. Manage your future with a diversified portfolio that meets your objectives for safety, liquidity, and growth. Be prepared to hold your coin, bullion and currency investments for a minimum of 3 to 5 years, recognizing that all markets have their ups and downs. Perform your due diligence and let reason and common sense be your guide.

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