The Risks and Rewards of Rare Coin Investing
Before you invest a dime in rare coins, get all the
facts including the risks, rewards, holding periods, and past
performance details. Getting all the facts first can make the hobby of
rare coin collecting both fun and financially rewarding.
Rare Coins Are Appreciating Assets
United States Rare coins have been appreciating assets over the past 20
years. A substantial body of evidence confirms this including the
Coin-Universe CU 3000 Report. Before you make a sizeable investment in
rare coins, we urge you to get a free copy of this report and read it.
Just like any other investment, there are both risks
and rewards to investing in United States Rare Coins. Naturally, past
performance is no guarantee of future profits and there can be no
assurance that an individual portfolio will ever be profitable.
Investing in rare coins entails significant risks, including certain
risks uncommon to other types of investments.
Know the Risks First
Rare coin investors should realize the risks of coin investing and be
prepared for the possible loss of some or most of their initial
investment. Any investment in rare coins should be made with an
understanding of the risk that the value of a coin portfolio will fall
with declines in the value of the Rare Coin Market.
Rare coins are not suitable investments for investors seeking current
income or who are unable to assume the risks of substantial price
fluctuations. There have been periods when rare coin prices have
decreased substantially and such periods may recur.
Allow a Minimum 3-to-5 Year Holding Period
For that reason, investors must view their rare coin holdings in the
long-term and be prepared to hold their rare coin portfolios for at
least three to five years. There's no guarantee that holding your
coins over a substantial time period will create the desired profits.
Significant Price Swings Possible
The collectibles market is volatile and thinly capitalized. Significant
short-term price swings are always possible. In addition, the difference
between dealer buying prices often can be large. RareCoins.com, its
principals and representatives, do not guarantee a profit or guarantee
against a loss, for any item you buy or sell through our firm or based
on any information contained on our internet sites and various
publications. You buy and sell collectibles at your own risk.
You Make the Buying Decisions
The research we have provided is intended to assist you in making your
decisions and is believed to have originated from completely reliable
sources.
About Us - RareCoins.com
All Terms and Conditions below apply to all sales transacted between you
and RareCoins.com. Finally, it's important to remember that our staff is
devoted to providing our clients with professional advice, the highest
quality U.S. gold coins, silver dollars, platinum and other bullion
coins at low prices. If you have any questions regarding these terms and
conditions, please call us.
Terms and Conditions of All Sales on RareCoins.com
1. OWNERSHIP - RareCoins.com is a dba of Austin Rare
Coins, Inc., a privately held corporation formed in 1989 under the laws
of the state of Texas. Because we are not affiliated with the United
States Government, or any government agency, we can assure your privacy
in all transactions.
2. SELECTION - Austin Rare Coins 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.
3. NUMISMATIC RETURN PRIVILEGE - You may return any
numismatic coins you order from us, in their original holders, within 14
days of receipt for a full refund, unless you are otherwise notified at
the time of the sale. Carefully inspect and evaluate your coins during
this period. To receive a refund or exchange, you must return your
numismatic coin order to Austin Rare Coins, registered and insured via
the U.S. Postal Service, in the same condition when shipped, within
14-days of receipt.
4. BULLION COINS NON-RETURNABLE - Coins we categorize
as "Bullion" are not subject to return or exchange. Sales of all such
Bullion coins shall be final. Shipment of Bullion orders is normally
accomplished within 30 days of funding unless the client is advised
otherwise of unusual market conditions in effect at the time of the
sale.
5. GRADING & AUTHENTICITY - Grades and descriptions of
rare coins are opinions, not statements of fact or guarantees, and are
based on standards and interpretations that can and do change over time.
Austin Rare Coins uses contemporary grading standards and
interpretations to grade coins and relies upon the opinions of
independent grading services such as the Professional Coin Grading
Service, the Numismatic Guaranty Corp., and ANACS. Each of these grading
services is recognized by the coin industry for its expertise. Each firm
guarantees the grade and certifies each coin to be authentic. Austin
Rare Coins relies upon those guarantees in selling coins. However, we do
not guarantee that the coins we sell will achieve the same grade from
any independent grading service in the future and expressly disclaim any
other warranties with respect to the coins, expressed or implied,
including the implied warranties of merchantability and fitness for a
particular purpose.
6. VOLATILITY - The coin market is volatile and thinly
capitalized and therefore 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. For that reason, rare coins are not a suitable investment
for everyone.
7. INVESTMENT POTENTIAL - During the period since 1970,
in which relatively accurate statistics have been maintained, many rare
coins have shown an excellent record as appreciating assets. Austin Rare
Coins 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. In addition, many coins are bought,
sold, and traded by the collector community without regard to investment
potential.
8. UNREGULATED STATE OF THE RARE COIN MARKET - At
present, there are no restrictions or regulations on the sale, purchase,
or ownership of rare coins. This fact provides 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.
9. 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. Further, rare
coins are not suitable investments for investors seeking current income.
10. BID PRICE - If you wish to sell your coins in the
future, we encourage you to offer them to us first. We cannot guarantee
to make a bid on every coin or that our bid will equal or exceed that
from other coin dealers.
11. PRICING - Because of expenses associated with the
acquisition and sale of rare coins, which are not involved in other
investments, the gross margins charged by a coin dealer are typically
higher than those associated with some other investments. Therefore,
rare coins should be considered as long-term investments with a holding
period of at least three to five years. However, there is no guarantee
that the holding of a coin, for any period, will result in appreciation.
12. REPRESENTATIONS - Information and statistics used
in the preparation of advertising materials, letters, and oral
presentations are derived from industry sources that we believe to be
reliable. Any statements or predictions by our staff are opinions only,
not statements of fact. Remember that market conditions are subject to
change without notice and no guarantee of accuracy is either expressed
or implied.
13. ARBITRATION - Any controversy or claim arising out
of or relating to transactions between you and Austin Rare Coins shall
be settled by arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association conducted in Austin,
Texas. Judgment upon the award rendered by the Arbitrator may be entered
in any court having jurisdiction thereof.
14. LIMITATIONS ON CLAIMS - No claim may be filed by a
customer in connection with a particular coin more than one year after
that coin was purchased by the customer regardless of when the customer
became aware of the claim. This agreement is performable in and subject
to the laws of Travis County, Texas.
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