PRECIOUS METALS WHITEPAPER

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1 PRECIOUS METALS WHITEPAPER { } The function of tangible assets in a diversified investment portfolio is to serve as a defensive asset class the appreciation of tangible assets can be expected to be proportionate to the depreciation in financial assets during periods of economic, financial, political and military turmoil. Harry Markowitz: Nobel Laureate in Economics and the Father of Modern Portfolio Theory

2 2 PRECIOUS METALS WHITEPAPER Client Objectives & Active Portfolio Management Virtue s third party vendor creates tailor made portfolios designed to meet client objectives through metal diversification. The team, advisors, and their clients complete a primary objective form to help determine the most effective diversification plan. Depending on the client s time frame and risk tolerance they will choose between numismatic, semi-numismatic, and bullion to best satisfy the overall objective. Active Portfolio Management occurs when the experts determine movements in the precious metals market. Virtue s partner will communicate with the advisor and the client recommending a sell signal to avoid losses when the value of specific coins is expected to decrease, and they will also recommend the purchase of other coins when they will support the objectives and goals of the client s portfolio. Why Buy Gold and Silver Coins from Our Source? Virtue s third party vendor just celebrated 25 years in business, and deals with a vast network of financial advisors throughout the country that specialize in gold and silver, annuities, 401(k)s, and stocks and bonds. Gold and silver gives each client true diversification to provide asset protection in any portfolio. A large volume, through our financial advisor network, generates savings that are simply unmatched by smaller dealers. Credibility and references are extremely important in any market. Being members of the American Numismatic Association (ANA), the Industry Council for Tangible Assets (ICTA), the Professional Numismatists Guild (the most exclusive consumer protection organization in the industry), and the Accredited Precious Metals Dealership provides thier clients the most exclusive consumer protection within the tangible asset industry. A member of the legal team is an active member of the Numismatic Consumer Alliance, a consumer watch dog organization that has helped consumers recover investment funds lost in overpriced and fraudulent tangible asset transactions. Their firm has a commitment to consumer protection. Their client transactions are fully transparent. Diversify Your Portfolio With Gold and Silver Gold has been used as money and a source of value for over 6000 years. Gold is also viewed as wealth insurance protection. It is the most liquid monetary asset in the world. Gold coins are acknowledged and accepted throughout the world and can easily be stored, hidden, or transported. For this reason, owning physical gold represents financial freedom, privacy and safety. There are numerous reasons to buy gold, silver may have even more upside potential. Like gold, silver has been used as money for centuries. Unlike gold, silver has more industrial uses, and the supply of silver is being depleted quickly! Today an enormous shortfall is developing in silver. Available supplies of silver have been shrinking steadily over the past decade as many of the silver mines have closed due to depressed prices. However, global demand has surged as low prices make silver more attractive to manufacturers and investors. For decades, the top Wall Street brokers have talked about the need to diversify your portfolio. However, while not putting all of your eggs in one basket is only common sense, Wall Street is missing one key element: physical gold and silver coins.

3 3 PRECIOUS METALS WHITEPAPER When Will America Wake Up? Think of owning silver as wealth protection. As the debt crisis in Greece, Ireland, Italy, Spain, and most of the other European countries accelerates, the price of silver and gold will most likely continue to be driven up. Investors all over the world are looking for a safe haven to park their assets. Do you feel comfortable on the stock roller coaster? How about buying CDs? With returns less than 1%, that is almost worse than sticking your money under your mattress! We view CDs as going broke safely. If you factor in inflation at the official government stats, you re looking at 3 to 6%. According to John Williams of inflation has been 8 to 13% per year since Even with the conservative inflation numbers, you could very well go broke by playing it safe. Your investments won t keep up with inflation. One of the only ways to keep up with inflation is by owning physical gold and silver. Silver has had a spectacular run. With all of the global uncertainty, the best is probably yet to come. As Wall Street says, Don t put all of your eggs in one basket. So diversify your portfolio today and buy some silver. A proper position in silver dollars gives you the peace of mind that your portfolio is insured against uncertain times. Silver and gold today are still a great bargain! When America wakes up, the supply of silver and gold coins could become scarce and expensive, and in truth, this prediction has already taken effect. There has never been a better time than today to buy physical silver and gold coins for protection, privacy, and sheer buying power. FAQs Do I take possession of my gold and silver? Generally, yes, you will take full possession of your metals. We advise all clients to take possession for liquidity. In this case, the expression that possession is nine-tenths of the law stands correct. The only situation that you would not have your metals is when you have a precious metals IRA. How is my order shipped? Once a client s transaction has been fully funded, delivery time can take approximately 7 to 14 business days. Your order will be shipped via registered U.S. Mail or Express Mail. At times, we may send your items in multiple packages to complete the order. Wire transfers will expedite shipping time frames. Is my order insured while in transit? Each package is fully insured and requires a signature upon delivery. The shipping of metals is in nondescript packaging ensuring safe, secure delivery. Your order is not your liability until the parcel is signed for and taken into your physical possession. How long should I hold my metals? We typically recommend that you hold your metals 3 to 5 years. The recommend time horizon for numismatic coins is 5 to 10 years. With current market fundamentals, the outlook of a 3 to 5 year plan is highly promising, although we cannot guarantee returns on investments. With all of the quantitative easing, European and U.S. debt, the fundamentals couldn t be better for metals. In 1980, 15% of Americans held physical silver. Currently only 2% of Americans hold any physical silver. When America wakes up, the price could explode!

4 PRECIOUS METALS WHITEPAPER U.S. Silver Dollar Coins: Semi-Numismatic U.S. Circulated Silver Dollars The best 2 semi-numismatic circulated silver dollar coins to buy: Morgan Silver Dollars - Minted from 1878 to 1904 and again in 1921, Morgan Silver Dollars are undoubtedly one of the most popular and most collected silver coins. Peace Silver Dollars- Minted from 1921 to 1928 and again from 1934 to 1935, the Peace Silver Dollars were introduced as a replacement to the Morgan Silver Dollar Coin series. 4 Circulated silver dollars offer several advantages over most other forms of silver investments, including: PRIVACY: Due to the silver dollar s age, condition, and scarcity, the circulated Morgan and Peace dollars are classified as collectible coins, and therefore are dealer nonreportable upon liquidation.* LIQUIDITY: The circulated silver dollars are some of the most liquid coins available to American investors. There are over 5000 coin dealers across the country who readily purchase silver Morgan or Peace dollars. In addition, they will gladly help your clients receive fair market prices upon your request to sell your coins. DOUBLE PLAY PROFIT POTENTIAL: Silver dollars offer a unique double opportunity to profit from both the silver content and the rarity. As the price of silver continues to rise, the premiums on the older and scarcer Morgan and Peace dollars could substantially expand, outperforming the common bullion coins such as the American Eagle, Canadian Maple Leafs, bullion bars, and rounds that continue to be minted by the millions each year. As the old silver dollars were minted almost a century ago, many have been lost or damaged, leaving only a limited number of silver dollars to own. VALUE: Not being concerned about the shiny, collectible side of things, you can currently buy circulated silver dollars for approximately 10% less than the cost of the modern American Eagle silver bullion coins. A GREAT BARTER COIN: During the last century, many nations that diluted their paper currencies (printed money) have experienced significant inflation or worse. People have watched their paper currencies erode on a daily basis. If history repeats itself, both merchants and consumers could quickly resort to a barter-type market where items of real intrinsic value become accepted as the only method of exchange. Gold and silver coins have always been among the most popular forms of barter money. The circulated Morgan and Peace dollars, because of their smaller size, familiarity, and ultimate value as a genuine legal tender coin minted by the U.S. government provide us with the perfect barter coins. Other coins and bars would suffer in this circumstance as it would be difficult to shave off a bar on a fractional trade. While many people feel that trying economic times only happen overseas, but never in America, we can only ask, Why not? Keep in mind, gold and silver is viewed as wealth insurance to maintain what you have now! *Any profit generated from the sale of silver dollars are taxable, as any capital gain would be, but they are not dealer reportable. Please consult your accountant on tax related subjects.

5 5 PRECIOUS METALS WHITEPAPER Silver has been used as money throughout the world, dating back to biblical times. Today we hear of silver as poor man s gold. However, with the geopolitical and financial events that are occurring in the world, the price of silver could skyrocket. Adding to the mix the tremendous amount of debt our country is facing, as well as worldwide turmoil, gives silver huge investment potential. American Silver Eagle Coins The American Silver Eagle coin was first produced in The Silver Eagle is the world s only silver bullion coin whose weight, content, and purity are guaranteed by the U. S. Government. The Eagle is America s only official investment-grade silver bullion coin. Highly valued for historical beauty and pure silver content, American Eagles are the largest U.S. Silver Dollars ever issued. By law, each coin contains one full troy ounce of pure silver. Eligible for placement in IRAs, Silver Eagles can act as building blocks for investments that will never lose all of their value. Silver Eagles serve as a great way to diversify your IRA portfolio. China is Encouraging its People to Buy Gold and Silver! Since the Chinese government started allowing their citizens to purchase gold a few years ago, China has soared to become the number two importer of gold in the world. India maintains the number one position. These two countries, now sitting on a mountain of foreign paper currency reserves (which are dwindling in value) are actively searching for tangible investment alternatives. Gold and silver are now high on their list while they are dumping the dollar! July 2011 marked the beginning of the Chinese silver futures market that will trade on the Hong Kong Mercantile Exchange. For the first time, Asia investors had direct access to the silver market. Asian investors have the option of taking delivery of physical silver in Hong Kong depositories. These two countries represent the largest emerging middle class in history. In addition to the public buying physical gold and silver, the Chinese and other Asian Central Banks are bringing in massive amounts of precious metals to back their currency. Do they know something that the U.S. public does not?

6 PRECIOUS METALS WHITEPAPER Physical Gold and Silver Shortage Now Reaching Extremes The average U.S. investor typically buys precious metals with a day-trade mentality. As the paper markets have been manipulated, the physical buyers of gold and silver have out-weighed the sellers by a margin of 50 to 1. The migration of physical gold and silver has flowed from the West into the willing hands of the far East. India, the world s largest gold buyer, is now being challenged by China, as the Chinese Central Bank builds its gold reserves with the hope of becoming the new world reserve currency. Silver, with its vast industrial uses (everything from semi-conductors in electronics to food, water purification, and solar energy), continues to see inventories drying up. U.S. Geological Surveys show less than 20 years of known mineable silver left. With the increasing global demand for physical gold and silver steadily rising, where will the supply come from? What will the physical demand do to the price of gold and silver? Why Should I Consider Owning Gold Coins? For the past 5000 years, the most sought after form of asset protection has been gold. At no time in history has gold ever been without value. 6 Gold offers peace of mind and insurance in our times of uncertainty. Gold is an inflation fighter and should continue to rise as money supply rises. Gold is easy to buy and easy to sell. It is universal money that can be bought and sold all over the world! Our partner offers a variety of gold coins dating from the 1800s to today s IRA eligible coins, the Gold American Eagles. Browse the categories below to learn more about how to buy gold coins: Gold Bullion: The value of the coin is based upon its precious metal content plus the minting costs. Because both gold and silver are soft metals, they are not intended for circulation. They trade at only a slight premium over their gold content. The coins are very liquid but do not offer the same privacy as the numismatic and semi-numismatic coins do. The most common bullion coins include American Eagles, Canadian Maple Leafs, and South African Krugerrands. Any gold coins or bars minted after 1933 are considered to be bullion. Numismatic Gold Coins: Numismatic coins are legal tender that were minted years ago. The fact that they were minted decades ago bases the value of the coins on their condition, grade, demand, and scarcity, as opposed to just their precious metals content. Unlike bullion coins, numismatic coins offer privacy and protection from confiscation. Most of the premium numismatic coins are found in higher grades such as MS64 MS67 that include rare US coins.

7 PRECIOUS METALS WHITEPAPER What Is the Best Way to Buy Gold? Semi-Numismatic Gold Coins: Semi-numismatic gold coins generally move up and down with the spot price of gold but also contain a slight premium above their gold metal content. Semi-numismatic gold coins can range from circulated to MS62 grade. These gold coins are very liquid and can offer privacy, as there is no dealer reporting requirement. Unlike gold bullion coins, which are massively produced today, the semi-numismatic Liberty and Saint-Gaudens gold coins haven t been minted since Because of the scarcity of these coins, they can offer a greater upside profit potential. Just like bullion, they go up in value when the spot price of gold rises. Unlike bullion, semi-numismatic coins can also rise due to supply and demand, creating an opportunity to profit on both sides. 7 U.S. Gold Coins Pre-1933 U.S. Gold Coins - Semi-Numismatic U.S. Gold Coins Common date U.S. numismatic and semi-numismatic gold coins provide the perfect combination of rising gold spot price and coin rarity. This combination gives the gold investor a double play, and for this reason, semi-numismatic gold coins have a greater upside potential than bullion coins. Liberty Gold Coins were minted from 1849 to 1907 and are considered to be rare gold coins. The Liberty Gold Coins are made up of 90% percent gold and were used as official US Currency until 1933 when most gold coins were melted down during the Great Depression. $20 Liberty Gold Coins (.9675 ounces) are the most popular. Liberty Heads also are available in $10 (.483 ounces) and $5 (.2419 ounces) gold coins. Saint-Gaudens Gold coins were minted from and are some of the most sought after gold coins. The Saint-Gaudens Gold Coin was the last to be minted by the United States government as official currency. During the Great Depression, many of the coins were either melted down or lost, making them more rare in higher grades. The U.S. Gold Eagle Bullion coins were first minted in Eagles are available in four sizes: one-ounce ($50 face value), half-ounce ($25 face value), quarter-ounce ($10 face value), and tenth-ounce ($5 face value). For this reason, Gold American Eagles can easily be bought and sold anywhere in the world, making these coins among the most commonly traded gold bullion coins on the market. American Gold Eagle Bullion Coins are qualified for use in precious metals IRAs. The design of the Eagle gold coins on the obverse is a copy of the Saint-Gaudens design. Orginally, The Gold Bullion Coin Act of 1985 required that gold eagle coins be minted from newly mined domestic sources. The coins are minted using 24 karat gold plus small amounts of alloy metals to help prevent scratching.

8 8 PRECIOUS METALS WHITEPAPER PRECIOUS METAL HYPOTHETICAL ILLUSTRATIONS With the U.S. debt in the trillions and growing, many Americans are very concerned about our unstable economy and the devaluation of the dollar. Many investors are turning to gold and silver as a hedge against inflation to protect and grow their savings and retirement accounts. S&P 500 Example In 2001, John and Sue chose to invest $100,000 in the S&P 500 index. At the end of 2015 their annualized return was 5.00%. The total return was 108%, resulting in $207,994. Keep in mind this was during a very strong bull market fueled by money printing and government stimulus. Gold Example Now let s look at Mark and Jennifer s decision to diversify their portfolio by acquiring $100,000 in gold. Their annualized return during the same time period was 8.78%. Their total return was 253.4%, resulting in $353, % $88, % $68, % $88, % $97, % $102, % $118, % $125, % $79, % $100, % $115, % $117, % $136, % $180, % $205, % $207, % $102, % $127, % $151, % $159, % $187, % $227, % $295, % $307, % $377, % $486, % $533, % $565, % $403, % $396, % $353,397 By investing in gold, they made an extra $145,403 dollars. The results over the next 15 years could be even better if our debt laden economy stagnates and does not grow like it has during the last 15 years. As confidence in the dollar drops, gold prices traditionally rise. Source: Morningstar Inc.