ABOUT GOLDLINE
Goldline International, Inc. assists investors and collectors with a full range of rare coins,
rare currency, and precious metals. We also provide free information to help collectors and
investors choose their acquisitions. Among other things, we exclusively produce and sponsor
The American Advisor radio show which is broadcast weekdays throughout the United States
and streamed on our website at www.goldline.com. Our
website contains helpful information such as precious metal spot prices, charts and coin
information for our more popular bullion and rare coin products.
Goldline traces its corporate history to 1960. We are proud to have continuously served
collectors and investors for nearly 50 years. We consider ourselves "market makers," offering to
buy and sell a wide variety of precious metals and rare 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 also offer an accumulation program that enables clients to acquire coins or precious metals on
a regular monthly program. The accumulation program allows you to decide the dollar amount
($100/month minimum) of your monthly acquisition. It is convenient and puts the power of dollar
cost averaging to work for you.
We are proud of our staff. They include numismatists, editorial and pricing consultants and
public speakers discussing the benefits of owning rare 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 an internationally recognized independent
certified public accounting firm.
We are a recognized leader in the rare coin industry and pride ourselves on excellent service and
personalized attention to our clients. Goldline's Director of Business Affairs is your personal
concierge and is available to answer any questions you may have. You can reach our Director of
Business Affairs at 1-877-376-2646.
We offer rare coins and currency which are fully guaranteed for authenticity and quality.
Goldline provides a seven (7) day unconditional money back refund privilege on your
first transaction for certified rare coins, precious metals and rare currency purchased
from our company. (See our "Refund Policy" and our Account and Storage Agreement for
details). We maintain a large inventory of rare and bullion coins which enables us to provide our
clients with prompt delivery.
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 rare coins,
bullion and rare currency from any firm. Please also review Goldline's Account and
Storage Agreement which provides additional important information. We are confident that Goldline
International, Inc. will be your choice for rare coins, precious metals and rare currency.
FACTS, RISKS AND POLICIES COLLECTORS AND INVESTORS SHOULD KNOW
DIVERSIFICATION: We recommend that rare coins and bullion be part of a
diversified investment portfolio. We believe that coins and bullion are appropriate for 5% to 20%
of a portfolio. (If you choose to invest more than this recommended 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 coins, bullion or rare
currency for investment purposes, they should be considered a long-term investment. We believe
that rare coins 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.
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. Only certain coins may be held in a precious metals IRA. Many clients choose to purchase
proof U.S. coins for their IRAs. You should know that proof coins carry numismatic or rare coin
spreads. See "Our Prices" section for more details. Tax laws are complex and may change
at any time. You should consult with your tax advisor about whether including precious metals in
your IRA is right for you.
LIQUIDATION/BUY-BACK POLICY: When you decide to sell your coins or currency,
we appreciate the opportunity to purchase them at our current bid/buy price. Although you are
free to sell to other coin dealers by private treaty or at auction through one of the many rare
coin auction houses, we believe 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 when making such
purchases. 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 bullion and rare coins we offer. Therefore, our buy-back policy is not a
guarantee and is subject to change without notice. We post our price indications on bullion and
bullion coins on weekdays and will quote them upon request. You can check our website at www.goldline.com for current price indications. On bullion,
semi-numismatic and rare coins and rare currency, it is our policy to offer to repurchase coins
sold by us at the then current bid/buy 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.
Please see the section entitled "Liquidity" for more information regarding the sale of precious
metals, rare 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 days of
payment of good funds (unless your State requires a different delivery period). If a shipment is
lost or damaged, 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.
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 and Storage Agreement.
CREDIT CARD PURCHASES: Goldline accepts payment by credit cards for some
products as a convenience to its clients. However, we do not recommend that you 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, rare coin and rare currency markets are speculative, unregulated
and volatile and prices for these items may rise or fall over time. Goldline does not guarantee
that any client buying for investment purposes will be able to sell for a profit in the
future.
The value of a bullion coin (e.g., Canadian Maple Leaf or South African Krugerrand gold coin) 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. Goldline 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, bullion or rare currency 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 a rare coin 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.
Since 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.
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, currency
or bullion.
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.
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.
The prices charged by Goldline for coins are subject to change based on market conditions. Our
total profit before operating expenses may be more or less than our spread based on various
factors including, but not limited to: quantity purchasing, favorable or unfavorable purchases,
and positive and negative market conditions. Goldline acts as a principal, not as a broker, and
generally owns the coins and precious metals it buys and sells.
There is a price differential or "spread" between our selling price (the "ask" price) and our
buy-back price (the "bid" price). This is often referred to as a "transaction cost."
A typical spread on our most common bullion coins (e.g. Canadian Maple Leaf or South African
Krugerrand gold coins) may range from approximately 5% to 20% depending on the coin though
spreads may increase based upon market conditions, availability and demand. Our spread on
semi-numismatic coins, rare or numismatic coins and rare currency currently ranges from 30% to
35%. Examples of coins which have a 30% to 35% spread include European gold coins such as the
Swiss 20 Franc, the PCGS certified "First StrikeŽ" coins, coins which have been encapsulated by a
grading service such as PCGS or NGC, the Morgan and Peace silver dollars in all grades, and the
Walking Liberty, Franklin and Kennedy silver half-dollars in all grades. Spreads may change based
upon market conditions, availability and demand.
With the exception of the most common 1 oz. bullion coins, Goldline charges clients its
numismatic spread, which currently ranges from 30% to 35%, on coins and currency. To earn a
profit upon resale to us, your coins, currency or bullion must appreciate sufficiently to
overcome this price differential.
To illustrate how this spread works, consider the following example. If the spread on a coin is
35% and Goldline's ask/sell price is $500 for the coin, then Goldline's bid/buy price is $325.
Your coin must appreciate more than $175 to earn a profit. If you choose to sell your coin back
to Goldline, you must also pay a 1% liquidation fee (the minimum liquidation fee is $15).
Purchases of less than $1,500 are subject to a small lot fee of $15.
BULLION PURCHASES: Bullion, including bars, rounds and coins, may only be
acquired with bank wire, cashier's check or personal checks (dollar limits may apply to certain
payment options). Goldline will only provide a firm price for your purchase upon receipt and
verification of funds and receipt of a signed Account and Storage Agreement. Prior to
confirmation of your purchase, a Goldline representative may discuss other products which carry a
higher spread such as the European gold francs or Morgan and Peace silver dollars. See "Our
Prices" for more information on the spreads for different products.
EXCHANGE TRANSACTIONS: Goldline does not recommend exchanging rare coins
and/or currency (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. 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 transaction for coins and currency without any reason
whatsoever (this refund policy does not apply to bullion purchases.) 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 the written trade confirmation is mailed to the
customer (based upon the postmark) or delivered to a third-party carrier such as FedEx. Notice
must be in writing via U.S. Mail, facsimile, or email and sent no later than the last day of the
refund period as determined by the post-mark if mailed, date of fax transmission if faxed, or
date of email as set forth in the email header. 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 and Storage 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 and Storage Agreement. In addition, Goldline may place your
account in bad standing which means Goldline may not repurchase your coins or currency.
ACCOUNT EXECUTIVES: The Account Executives at Goldline are generally
commissioned salespersons. Their commissions are usually greatest on rare coins and
semi-numismatic coins and least on bullion related products. Their work experience, knowledge,
background, and training vary widely. They and/or Goldline may receive, from time to time,
undisclosed compensation for recommending 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 are not authorized
to recommend the purchase or sale of any product or investment other than 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, rare 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/rare coins. Goldline may not provide a "bid" or "buy-back" price on some
collectible coins. Sometimes, because of its market influence, when Goldline stops recommending
an individual semi-numismatic or numismatic coin, its price may drop.
GRADING: 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
rare coin firm to rare 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 rare coin or currency. Grading standards may continue to change, becoming more or
less stringent. Grades and descriptions of rare 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) for coins and Currency Grading & Certification Incorporated (CGC), Paper
Money Guaranty (PMG) or PCGS Currency for rare currency, please note that 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 StrikeŽ" 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 rare
coins and other items it sells are genuine. Goldline expressly disclaims any other warranties
with respect to coins or other items, express or implied, including the implied warranties of
merchantability and fitness for a particular purpose.
GROWTH PROJECTIONS: Goldline may advise clients about forecasts made by
members of our staff or third parties regarding the future prices of precious metals or the
products sold by Goldline. In making those projections, Goldline's staff members will normally
consider the following factors:
- Past performance: While past performance is a useful guide, it is not a guarantee of future
results. We frequently assume that if rare coins or bullion 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 apply research, common sense, and logic in an effort to forecast future trends. We
believe these trends are a useful guide in evaluating the future potential for rare coins and
bullion.
- Supply and demand: We believe that fundamental market forces will generally prevail.
Therefore, we take into consideration changing supply and demand factors and our expectation of
future trends of supply and demand.
There is no assurance that our growth projections will be achieved and it is also possible for
prices to decline. We do not guarantee our forecasts or projections, but we strive to provide you
with analysis that we believe is well thought out and sincerely reflects our opinion.
You should also know that different market factors may influence the value of a specific coin or
currency. For example, the value of a numismatic coin may be affected by such factors as grade,
scarcity and demand in the marketplace while the value 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 AND STORAGE AGREEMENT: Goldline's Account and Storage 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 and Storage 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 and Storage Agreement, you should immediately
contact Goldline's Director of Business Affairs at 1-877-376-2646. Please do not proceed with any
transaction until your questions or concerns have been fully answered.
Please make all payments payable to Goldline International, Inc. Please do not send cash. Your
payment options are: Bank wire, cashiers check, personal check and credit card. Please no money
orders or Traveler's Checks.
All metal/coins/currency must be sent U.S. Postal Service (registered insured, return receipt
requested) to: THE AMERICAN ADVISOR, 1601 Cloverfield Blvd., 100 South Tower, Santa Monica, CA
90404. Check with your Account Executive for special packaging and address requirements.
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 plus 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 rare coins or precious
metals. Protect 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.
© 2005, 2007, 2008, 2009 Goldline International, Inc. All Rights Reserved
