Risk Disclosure for Purchases of Precious Metals
General Risks Disclosure
USAGOLD advocates the ownership of precious metals primarily as a store of value and for asset preservation purposes. That said, some investors own precious metals as a speculation with the hope of making a profit, necessitating the following disclosures of risk: All investments involve risk. Precious metals bullion, bullion coins and collectible coins including the European, United States, Latin American gold coins and numismatic coins offered by the firm, are no exception. Prior performance cannot be used to predict future performance. Investing in these items may not be suitable for everyone. Investors should have adequate cash reserves and disposable income before entering this investment. An investment in bullion and coins provides no interest or yield. Bullion prices must rise during the period that these items are held sufficiently to cover the buy/sell spread and provide a return. Precious metals coins and bullion are not insured by the Federal Deposit Insurance Corporation or any other government agency. USAGOLD is not liable directly or indirectly for market losses incurred by individuals as a result of their purchases from USAGOLD.
Special Factors Affecting Prices and Value
The price and value of precious metals coins and bullion are affected by many economic and market circumstances. Buyers should weigh all of these, and others before making a purchase. The current spot market price for precious metals changes by the minute and can go up or down significantly in very short periods of time thus directly affecting the value of items that clients purchase from USAGOLD. Most precious metals products offered by USAGOLD in the form of coins and bullion trade at premiums above the gold price. Likewise, these items trade with buy-sell (or bid-ask) spreads determined by the supply and demand of the individual items. As such the spot price of the metal, or the value of the item, must appreciate sufficiently to cover that spread before the holder of the metal is at a profit. In the case of numismatic and semi-numismatic items offered by USAGOLD, grading plays a significant role in the price and value, both at the time of purchase and of sale. In most cases, numismatic and semi-numismatic items offered by USAGOLD have been graded by either the Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC). These grading services render independent and subjective opinion on the condition (or grade) of coins, and then seals those coins in tamper-proof holders. USAGOLD relies entirely on the opinion of these grading services for statements of condition.
Last Updated: 9/20/2013