Miami Living Magazine

Gavin Rossdale

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PROFILE Metal versus Paper Let National Coin Broker Be Your Guide I am Ross C. Baldwin, President of National Coin Broker. My company and I are extremely passionate about what we do. We are a full-service numismatic firm dealing in certified rare coins and precious metals. People of average means as well as serious investors contact my firm because they're looking for sound advice, good value and a high degree of integrity when conducting business. One of the most frequently asked questions is, "Why should I invest in or hold a bullion or numismatic based portfolio?" Whether a hedge against inflation or a store of core value, experts all agree that holding precious metals is a wise decision and should be included in everyone's portfolio. A primary reason for holding hard assets is to protect the portfolio against fluctuations in the value of any single paper holdings or group that tend to react in a common fashion. Portfolios containing select certified rare coins, gold, silver and other precious metals are generally more stable and predictable than all other investments. Arguably one of the hottest areas in investing are the precious metals and for very good reason. Consider this, gold over the last 12 months has rallied over 50%, silver, during the same interim escalated over 125%! The impetus for the increase in gold and silver is defined by the continued weakness of the dollar. During the same time the U.S. Dollar has fallen some 7.4% and the government continues to keep interest rates artificially low. It comes as no surprise that Standard & Poor's revised its long-term outlook on U.S. debt to negative from its previous stable rating. Gold racing over the $1,500 level during the first quarter of 2011 also held historic ramifications. Fueled by financial concerns and desiring wealth preservation, the University of Texas made a momentous announcement in late April 2011. The University of Texas Endowment Fund 88 MIAMI LIVING having more than tripled that of bullion. Conversely, in periods of weakening gold and silver markets, (which do happen) collector coins have done exceptionally well too, showing a far more modest decline than bullion prices. That is precisely why we at National Coin Broker strongly recommended decided to buy and take delivery of $1 billion worth of gold. Since the University has about $20 billion in assets, a $1 billion gold allocation indicates approximately 5% of the school's resources are now in gold. While 5% may not seem a significant amount it is a huge increase as most standard institutional allotments had maintained a position around 1%. If other foundations adopt a similar stance the price of gold will most likely advance even further. Remarkably, this major purchase consummated just five months ago, has already awarded the University of Texas a substantial return as the yellow metal has already accelerated over 25%! Due to the debt ceiling crisis and colossal world events, the stabilization of many paper based assets is highly questionable and many of their values have deteriorated rapidly. For many, whether it be gold, silver or platinum, these are all considered stores of value in troubling economic times. And while they may not award the individual an actual dividend, the protection from further erosion from mainstream investments in traditional holdings make many of the metal investments a perceived safe haven. With that said, although the precious metals have been media magnets as of lately, over the long-term, certified rare coins have consistently outperformed gold and silver bullion by substantial margins. According to past surveys, the PCGS 3000, the annual appreciation of rare coins averaged nearly 25 percent over two decades, while gold averaged under 5 percent annually during the same term. The numismatic market has been more dynamic with its performance. Rare coins diversified portfolios, not only to conserve and preserve wealth, but to open up new horizons; practical roadmaps for investors as well as serious hobbyists. It's not only a matter of when to buy or when to sell your holdings for "pure" investors, or the casual "collector", there is ample room for emotion here-- you can actually hold and enjoy this investment. Furthermore, a certified rare coin portfolio is highly liquid and highly portable requiring very little space to securely safeguard tens of thousands or tens of millions of dollars in assets. I have set up various educational Webinars to help accommodate the numismatic novice or supply the more seasoned investor with current and pertinent market data at your convenience. There is no obligation and no charge for this service as I believe an educated client is ultimately a wiser investor. Once you sign up for one of my Webinars, I will supply you with a private access code, then at the agreed- upon time we will start the conference. For a personal consultation or portfolio evaluation, please take a look at my upcoming show schedule on my website nationalcoinbroker.com. As I travel the country appearing at all major numismatic shows and conventions, please plan on attending one or more of my national appearances and I or my valued associate and numismatic market analyst expert, Jim Bisognani or another member of my talented staff will gladly accommodate your request. To set up a private one-on-one internet session, contact Ross C. Baldwin, President andCEO of National Coin Broker at nationalcoinbroker.com or 800-707-7923. ML

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