NATIONAL COIN EXCHANGE, INC

1. Liquidity:
The U.S. Rare Coin Market is estimated to be in excess of $5 billion dollars with more than 1000 shows and conventions annually. There are more than ten million collectors and investors. Bid and ask prices are quoted daily. The number of web sites is growing as you read this. When you want to sell a coin you can contact NCE. See #7 in our Terms of Sales section. Also NCE will come to you when the market dictates, to buy certain coins we have sold to you. The U.S. Rare Coin Market is like any other market in that it experiences Bull and Bear Markets.

2. Fixed Supply:
The supply of U.S. Rare Coins is fixed. However there is a dwindling of the supply available for sale due to:

A. Collections: Collectors collect but they don't sell very often. Some collections are sold after many years. Some are willed to family, friends, or charities. Some are donated to museums; and usually that is where they remain.

B. Loss & Damage: Unfortunately not everyone knows how to handle rare coins and so part of the dwindling supply is due to damage. Yes, some people actually lose coins!

C. Investing: Rare coins are viewed as a long term investment (three to five year minimum holding period), so there is always a percentage of coins being held by Investors. The holding period may vary due to client objectives or market conditions.

3. Diversification/Inflation Hedge:
Professional money managers suggest that a portfolio contain 15% - 20% of hard assets that have proved to be resistant to the volatility that other markets experience. Currently we are seeing 2% - 3% inflation annually. This is not high for one year, but over 5 or 10 years it is significant.

4. Storage:
Coins will be sent to you giving you control of your investment. Coins can be stored in their holders in a safe or safety deposit box. Do not polish or try to clean your coins! The holders are made so you can view the coins. Avoid taking them out of the holders unless it is absolutely necessary! If you wish, NCE will store your coins at no cost to you. Due to their size, rare coins are easily and inexpensively stored by the owner (safe deposit box, vault, etc.) giving the owner total control over their investment.

5. Tax Treatment:
Silver and gold bullion coin transactions must be reported to the IRS by dealers. Examples of Bullion Coins are Krugerands, American Eagle Bullion Coins, Maple Leafs ETC. Rare coins collectibles and Dealers are not required or obligated to report these transactions. Also, portfolio upgrading and exchanges are permitted without reporting to the IRS. When rare coins are sold, the profits are reportable to the IRS by the seller. Contact the IRS, your tax attorney or accountant for additional information.