California
Numismatic Investments
Copyright ~
Risk Disclosure ~ Trader's Option ~ Buy/Sell Spreads
This site (www.golddealer.com), our special reports, and other promotional material
have been copyrighted by California Numismatic
Investments, Inc. (CNI, Inc.). All rights are
reserved and reproduction is prohibited without written permission.
Precious metals and certified rare coins,
involve risk, therefore profitability can not be guaranteed. It
is understood this firm, its employees or officers, may buy,
sell, or have an interest in the recommended items. As with any
investment our recommendations are subject to the buyer's own
good judgment and research. And while we try to answer each and
every question in a reasonable manner, there is a limit to even
our patience, so we reserve the right to refuse service to
anyone.
While due care has been exercised in
development and dissemination of this web site,
our newsletter, or other promotional material,
there is no guarantee of correctness so this
corporation and its employees shall be held
harmless in all cases.
It is further understood that our employee's suggestions or opinions, and all
other promotional material is provided for informational
purposes only. California Numismatic Investments, Inc. and its employees do not render
legal or investment advice.
No person knows for certain what the
future may hold so price projections based on
past events may not be reliable. We do, however,
study past trends in an effort to evaluate
possible future opportunities because it makes
sense to us. Many investors also find such
history important in making up their minds what to
purchase. We suggest each person
investigate carefully all choices and options
before investing in precious metals or certified rare
coins. Use more than one information source and take your time in deliberating which choices are best for you. Why? Because such investments may not be
suitable for everyone. If you have doubts check
with your financial planner before investing. Because of the volatility inherent in precious metals and PCGS certified coins use venture capital only and in no case risk more
than you can afford to lose.
Also note that grading standards have changed
in the past and could do so in the future.
Certification of rare coins by PCGS does not guarantee
protection against the normal risks associated
with potentially volatile markets.
We reserve the right to change our buy or sell
prices, or spreads, without notice, relative to after market
conditions or perceived changes in the physical bullion market. We also reserve the right to change our buy or sell prices, or spreads, without notice, in the certified rare coin market relative to The Certified Coin Exchange or The Coin Dealer Newsletter (The Grey Sheet). We try our best to interpret these markets but the final arbitrator of these changes will be in all cases the owner's of California Numismatic Investments, Ken Edwards or Richard Schwary.
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What is your spread
between the buy and sell price of various
products? In the precious metals business
this answer will depend on market volatility,
relative price and the nature of the product you
choose.
Bullion Coins or Bars:
The difference between the buy and sell usually
varies between 1% and 4% on gold and up to 5% on
silver. This market is driven by speculators and
folks who believe real money can’t be defined by
paper currency. This market can be volatile and
subject to dramatic moves depending on public
confidence.
Semi-Numismatic Coins:
An example of this area would be non-certified,
circulated $20 gold pieces. The difference
between our buy and sell is about 10%. So the
spread is larger than regular bullion, but you
get a rarity advantage which may lead to better
price action and possible confiscation
protection.
PCGS Certified Rare
Coins: Of these three investment areas the
difference between the buy and sell in this case
can be the largest, coming in between 10% and
20%, but time has shown this area can be a
superb long-term money producer given you make
the right choices. This is true because relative
rarity and the difficulty in locating an example
are only two primary driving forces. There are
three others which are important: First, a large
collecting base has been established since the
beginning of the 20th Century. This
tends to push prices higher and shrink available
supply. Second, the readily available price
history of rare coins dating from the early
1970’s provides investors important information.
And, third, case studies which show carefully
chosen rare coins can provide currency and
inflation protection over the long term.
So which area is the
correct choice? Actually no person can tell you
what the future may bring. Sometimes bullion
leads the race and may out perform
semi-numismatic or PCGS Certified Rare Coins.
Over the longer term carefully chosen rare coins
have done better than both bullion or
semi-numismatic choices, but the spreads tend to
be larger and past performance is not a
guarantee of what may happen in the future.
Depending on random market forces you may find
one area outperforms the other two and it is
just as likely that the others may catch up or
surpass your original choice. This is true
because public demand creates an unpredictable
market dynamic, which is why we suggest a
diversified approach. Since the 1970’s a
combination of precious metals and rare coins
seems to be the right choice. Each has surged
and retreated in value according to how much
faith investors have in the dollar, the price of
oil and other related factors. |
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It is
important to exercise your own common sense in
these markets for the precious metals and
certified rare coins can and often do change
dramatically in price. Depending on market
direction you could profit handsomely, make no
money at all, or lose money. And you should
always be aware there is a difference between our
buy and sell prices. That is how we earn a living. This difference can change without notice and is solely determined on a day by day basis relative to the
trader's position, market volatility, and the ability to resell products in the wholesale market. Don't invest unless you ask questions and fully
understand the possible risk or reward inherent in the precious metals and certified rare coin markets.
(CNI, Inc. Copyright 1997)
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