Coins, Coin Collecting, Rare Coins, Gold Coins and Coin Appraisals of Monetary Protfolio
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Is the grade of the coin guaranteed? What advantages do scarce to rare coins have over gold bullion? How long should I hold coins? How liquid are scarce to rare coins? Which coins should I buy? What would happen to scarce to rare coin values if the stock market collapses? What is the advantage of quality versus quantity? How much should I allocate to hard assets? Is there any way that I can acquire gold and protect myself from the possibility of confiscation? Do you report my buying/selling transactions to the U.S. Government? What are my tax implications of buying and selling scarce to rare coins? How do I order coins from MPC? Do you accept credit cards? Do you charge sales tax on all transactions?

1.Is the grade of the coin guaranteed?

Certified coins are sonically sealed in tamper-proof plastic cases. They offer state of the art investor and collector protection. Grading is accomplished by a team of three expert graders. The coin's authenticity and grade are guaranteed by NGC or PCGS. In addition, coins which have been independently graded and certified command higher prices than raw, uncertified coins.

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2. What advantages do scarce to rare coins have over gold bullion?

* Prices of select scarce to rare coins appreciated 600% from 1982 to 1989 while gold's increase was less than 100% for the same period.

* Since scarce to rare coin prices are affected by collector and investor interest, scarce to rare coin prices can rise during periods of low-inflationary prosperity, even while gold is falling. For example, 1988-89 were bearish years for gold but quite bullish for rare coins.

* Scarce to rare coins can be bought and sold privately and are more easily transported than bullion.

* The price of gold is affected by the increase supply of the metal from gold mine production, yet scarce to rare coins cannot be newly minted.

* Under current law, the federal government can confiscate gold in times of national emergency. Scarce to rare coins were excluded under previous federal confiscations earlier in this century.

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3. How long should I hold coins?

Typically an investor should expect to be in the scarce to rare coin markets for at least 3 to 5 years. Scarce to rare coins should be viewed as a long-term hedge, not a short-term speculation. Many collectors pass their wealth with scarce to rare coins from generation to generation.

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4. How liquid are scarce to rare coins?

With the advent of independent grading and certification, coins can be sold sight-unseen. You can sell your coins directly back to Monetary Portfolio Consultants, L.L.C. or any dealer and receive funds immediately. Millions of dollars in coins are traded daily via the telephone and the internet.

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5. Which coins should I buy?

Buy the best quality that you can afford. Remember, as a general rule, the best usually appreciates the fastest.

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6. What would happen to scarce to rare coin values if the stock market collapses?

If a tremendous amount of money comes out of financial assets, it should gravitate to alternative stores of wealth such as hard assets. Scarce to rare coins tend to hold their value or appreciate in the case of a flight to hard assets. For example, after the 1987 stock market crash, the scarce to rare coin market was extremely bullish. In fact, scarce to rare coin prices set records throughout 1988 and 1989, despite the fact that the price of gold actually declined.

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7. What is the advantage of quality versus quantity?

"Better Date" refers to the rarest or lowest population coins in a particular series. Due to their rarity, they can command the interest of very wealthy coin collectors who wish to round-out their sets. These collectors are prepared to pay top dollar for such coins. Better date coins and premier high-grade specimens experienced large percentage gains over the last 30 years. The Pittman auction in October 1997 showed average appreciation on select U.S. rare coins for the last 20 years to be over 70% per year.

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8. How much should I allocate to hard assets?

John J. Pittman, the most successful scarce to rare coin buyer of all time, put all his resources into top quality scarce to rare coins and made a fortune. Of course, we do not recommend this philosophy. Many financial advisors prudently recommend 20% to 30% of your portfolio should be placed in hard assets. Scarce to rare coins should represent a prudent diversification of a well diversified portfolio.

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9. Is there any way that I can acquire gold and protect myself from the possibility of confiscation?

During the period of our government's past prohibition on gold ownership, an exemption was included for "coins with a recognized special value to collectors of scarce to rare and unusual coins." Midway through that 41-year period, the exemption was expanded to include "gold coins made prior to April 5, 1933." It seems very likely that similar exemptions would apply to any future confiscations of gold. Plus, the Eminent Domain Clause of the US Constitution requires that private property shall not be taken for public use without just compensation. In the case of scarce to rare gold coins, this would require subjective valuations on a coin-by-coin basis, which quite likely would be subject to dispute. The administrative burden of this process would be of epic proportions. Therefore, it seems highly unlikely that the US government would ever confiscate coins made prior to 1933.

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10. Do you report my buying/selling transactions to the U.S. Government?

Currently, there is no reporting requirements on the buying or the selling transactions of scarce to rare coins by brokerage firms to any US Government agency.

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11. What are my tax implications of buying and selling scarce to rare coins?

If you sell your coins for a profit, you are required to report the capital gain. Ask your accountant for more information on these reporting requirements.

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12. How do I order coins from MPC?

Contact us about the certified coin(s) you are interested in purchasing. Call 1-877-881-4121 or FAX us at 1-480-947-2236 with your list of coin(s). We will check to verify the coin(s) are still available. If so, we will "lock-in" the coin(s) and the price in your name. We will give you a total balance and email you an invoice. You can mail us a personal check, money order, cashier's check or send a bank wire to our account. We will send you the bank wire information. When the check clears (usually 7 working days), we will ship the coins to you. With receipt of a bank wire, we ship the coins immediately. U.S. shipping only. Of course, all coins sold have a full 7 day unconditional return privilege.

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13. Do you accept credit cards?

We do not accept credit cards. If we accepted credit cards, we would have to pay extra fees to the credit card company, and have to charge you extra for the credit card fraud that does exist.

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14. Do you charge sales tax on all transactions?

There are no sales taxes due on scarce to rare coin transactions by the state of Arizona at this time.

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