FACTS, RISKS AND POLICIES INVESTORS AND COLLECTORS SHOULD KNOW
DIVERSIFICATION: Precious metals and numismatic coins can be an important part of a diversified investment portfolio. We believe that precious metals and numismatics are appropriate for 5% to 30% 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 precious metals or numismatics for investment purposes, they should be considered a long-term investment. We believe that precious metals and numismatics should be held for at least 3 to 5 years, 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. Please see the section below entitled Risk 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. Gold Financial Group acts as a dealer and it or its parent company generally owns the precious metal it buys and sells. Price Spreads/Breakeven: There is a price differential or “spread” between the price a Client pays when it buys precious metals or numismatics from Gold Financial Group (the “buy price”) and the price a Client receives when it sells precious the metals or numismatics (the “sale price”). The spread is dollar amount that may be stated as a percentage. The percentage is calculated by subtracting the sale price from the buy price and then dividing the difference by the buy price (buy price– sale price)/sale price. To illustrate how a spread works, consider the following example: if a Client’s buy price for a coin is $500 and the sale price for the coin on the date of purchase is $400, the difference between the buy price and the sell price for the coin is $100 ($500- $400 = $100). In this example, in order to break even, the sale price for the coin will need to increase by $100, or 25% ($500- $400=$100/$400 =25%), excluding any fees and other costs.
IRA ACCOUNTS: Gold Financial Group may refer clients to companies that provide trustee and custodian services for Individual Retirement Accounts (IRA). Gold Financial Group 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. Gold Financial Group does not share or assume responsibility for any loss or damage resulting from the client’s relationship with the IRA company. Gold Financial Group does not believe clients should invest more than 5% to 30% 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 of an IRA based upon your individual circumstances. Only certain bullion coins and bars and proof coins may be held in a precious metals IRA. Tax laws are complex and may change at any time. Gold Financial Group 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 precious metals, we appreciate the opportunity to arrange for an offer purchase from an affiliate, at the then current buyback price. We are familiar with the quality and marketability of the items we sell and do not charge any additional fees or commissions. Depending upon market conditions and your original purchase price, you may receive less than what you paid for the precious metals and numismatics. The law prohibits us from guaranteeing to repurchase the precious metals we sell, although we have always made buy-sell markets in the precious metals we offer or make similar arrangements with affiliates to do so. Therefore, our buyback policy is not a guarantee and is subject to change without notice. Liquidation requests may be made to your Account Executive or by calling Client Relations at 888-915-2443. You may also contact Client Relations via email at email@example.com. Liquidations are handled by a Gold Financial Group affiliate. Please contact Gold Financial Group for packaging, shipping and address requirements prior to sending any precious metals or numismatic coins to Gold Financial Group’s affiliate. Please see the section entitled Liquidity for more information regarding the sale of precious metals and numismatic coins.
DELIVERY: All packages shipped to our clients are insured until good delivery is made. Our preferred shipping carrier is UPS and all shipments are under a security level watch while in transit. Your acquisitions will be delivered no later than twenty-eight (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, Gold Financial Group will, at Gold Financial’s option, 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 five (5) calendar days of receipt of your shipment, and you must have all original packing materials intact. Any claim beyond this time period may be denied. Gold Financial Group 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: Gold Financial Group stores client holdings in an affiliated or independent depository of its choice and may change depositories without prior notice. Gold Financial Group may store 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 Gold Financial Group’s Account Agreement. CREDIT CARD PURCHASES Gold Financial Group 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 Gold Financial Group.
RISK: All investments involve risk and precious metals are no exception. The precious metals market is speculative, unregulated and volatile, and prices for these items may rise or fall over time. Gold Financial Group generally classifies coins as bullion or numismatic. Some coins may fall within more than one category, depending on their specific grade or condition. Other dealers and organizations may define these terms or classify these coins differently. Precious metals generally have a premium above their melt value. Premiums may increase or decrease based upon current market conditions such as supply and demand. Changes in premiums may affect a precious metal’s pricing beyond changes in spot prices. Precious metals can go down in value as well as up in value. Precious metals may not be suitable for everyone. Gold Financial Group is not responsible nor does it determine the suitability of any specific person to purchase precious metals. You should consult with your independent financial advisor regarding whether such an investment is right for you. You should not acquire any products from Gold Financial Group if you are not competent or qualified to make your own financial decisions. You should obtain a thorough understanding of the precious metals products before you acquire these products as a collector or investor. The investment value of precious metals depends in large part on the price you pay. If you are acquiring any of Gold Financial Group’s products as an investment, you should evaluate its current market value, potential for appreciation and liquidity, and consult independent sources regarding these factors. Gold Financial Group does not guarantee that any client will be able to sell precious metals at the original purchase price or a higher price in the future. Since precious metals can decline in value, you should have adequate cash reserves and disposable income before considering acquiring 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 precious metals. Gold Financial Group is not responsible for any changes in tax laws or other statutes which may affect any profit or salability of your coins.
SWAP TRANSACTIONS: Gold Financial Group does not recommend exchanging precious metals or numismatic coins (trading one product 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, Gold Financial Group provides clients with the right to a refund on their first purchase without any reason whatsoever. To receive a refund, the client must notify Gold Financial Group 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 7. Notices of cancellation may be provided by speaking directly with an Account Executive; calling Client Relations at 888-915-2443; via U.S. Mail at 15545 Devonshire Street, Suite 201 Mission Hills, CA 91345 (or other address that Gold Financial Group may specify in writing); facsimile at (888) 915-2443; or email at clientconcierge@theGoldFinancialGroup.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 Gold Financial Group representative and are not subject to cancellation. (Your state may have additional refund and cancellation rules which supersede Gold Financial Group’s refund policy above. Please consult Gold Financial Group’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, Gold Financial Group may, at its option, liquidate a portion of your stored holdings and apply the proceeds to your unpaid order in accordance with Gold Financial Group’s Account Agreement. In addition, Gold Financial Group may not repurchase your coins.
CONCIERGE: Gold Financial Group’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 888-915-2443 or via email at firstname.lastname@example.org.
ACCOUNT EXECUTIVES: The Account Executives at Gold Financial Group are generally commissioned salespersons. Their work experience, knowledge, background and training vary widely. They and/or Gold Financial Group may receive, from time to time, undisclosed compensation for selling specific precious metals (including but not limited to contests, cooperative advertising and trading profits in coins that they may own and/or sell). Gold Financial Group’s employees are not licensed as investment advisors and, accordingly, do not make any recommendations regarding client investments. The only products which Gold Financial Group employees are authorized to sell are the products specifically sold by Gold Financial Group. 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 Gold Financial Group sells. You should consult with your tax advisor regarding any questions about the tax implications of buying or selling bullion or numismatic coins.
LIQUIDITY: Of the products that we buy and sell, bullion and bullion coins generally are more liquid than numismatic coins. Gold Financial Group may not provide a buyback price on certain numismatic coins. Sometimes, because of its market influence, when Gold Financial Group reduces or stops selling certain coins, their price may drop.
GRADING AND WARRANTIES: Our company uses the numerical Mint State (MS) grading system which rates uncirculated coins from MS-60 to MS-70. Typically, the higher the grade, the more a coin 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. 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. Grading standards may continue to change, becoming more or less stringent. Grades and descriptions of numismatic coins 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 from Gold Financial Group that is independently graded by a third-party grading service such as Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC), Gold Financial Group 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 thirty (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 Gold Financial Group does remove products from their sealed holder and re-submit them to the grading services. Gold Financial Group reserves the right to deliver independently graded coins that have been graded by an independent grading service of Gold Financial Group’s choice such as PCGS or NGC. Gold Financial Group guarantees that the numismatic coins and precious metals it sells are genuine. Gold Financial Group 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: Gold Financial Group may inform clients about forecasts made by third parties regarding the future prices of precious metals. 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 precious metal. 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 precious metal or type of precious metal may not apply to other types of precious metals that Gold Financial Group may offer.
ACCOUNT AGREEMENT: Gold Financial Group’s Account Agreement sets forth the terms and conditions of your transactions with Gold Financial Group. Please review this agreement carefully before you sign and return it to Gold Financial Group. For your convenience, you may review the Account Agreement online at www.thegoldfinancialgroup.com.
FOR YOUR PROTECTION: Your privacy is important to us. If at any time you no longer wish to be contacted by a Gold Financial Group 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 Gold Financial Group’s Account Agreement, you should immediately contact Gold Financial Group’s Client Relations Department at 888-915-2443. Please do not proceed with any transaction until your questions or concerns have been fully answered. Please make all payments payable to Gold Financial Group, Inc. Please do not send cash. Your payment options are as follows: bank wire, cashier’s check, personal check, ACH and credit card. Please do not send money orders or traveler’s checks. Please promptly notify us in writing if you change your address, and include a signature guarantee or notarized letter, along with a copy of your driver’s license or utility bill. Be sure to include your account number and to sign all correspondence. For account title changes (e.g., trust or business account), please contact your Account Executive or Gold Financial Group’s Client Relations Department at 888-915-2443. 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. theGoldFinancialGroup.com.
MONITORING/RECORDING OF CALLS: Telephone calls may be monitored and/ or recorded in an effort to assure quality control and policy compliance. Thus, when speaking with a Gold Financial Group representative, you understand and agree that every telephone conversation between you and Gold Financial Group - whether you place a call to Gold Financial Group or a Gold Financial Group representative calls you - is subject to monitoring and/or recording. You agree and consent to have your calls with any Gold Financial Group representative monitored and/or recorded without further notice or the requirement of additional consent or agreement from you. You consent to monitoring and/or recording of your telephone conversations with any Gold Financial Group representative by appropriate Gold Financial Group personnel and authorized outside third-party monitors. You acknowledge that you do not have a reasonable expectation of privacy during any of your telephone conversations with any Gold Financial Group representative. You further understand and agree, with respect to the potential monitoring and/or recording of all of your telephone calls, that you expressly waive the right to assert at any time that any conversation between you and any Gold Financial Group representative are or were confidential or private. Unless otherwise agreed by Gold Financial Group in writing, Gold Financial Group does not consent to the recording of telephone conversations by you or any third party. You understand that not all telephone lines or calls are recorded and Gold Financial Group does not guarantee that any recordings of any particular telephone calls will be retained or be capable of being retrieved.
SUMMARY: We strongly recommend that you acquire a sound understanding of precious metals markets before you make your first purchase. Be prepared to invest some time and effort into understanding the market. Do not commit more than 5% to 30% of your investment funds to precious metals. Manage your future with a diversified portfolio that meets your objectives for safety, liquidity and growth. Be prepared to hold your precious metals 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.