There are a many options available to individuals considering purchasing precious metals. These options include a wide array of products, each of which carry different benefits and risks, along with varying margins and costs associated with their acquisition. Gold Gate Capital “GGC” specializes in bullion, semi-numismatic, and rare coins. We believe diversification is important to a strong investment plan. As a general guideline for most investors, GGC suggests that physical metals constitute between 10-20% of a well diversified portfolio. For advice about your personal portfolio, please consult your financial adviser; GGC does not make individualized recommendations to customers. Some individuals or entities may recommend different amounts. If you choose to invest a greater portion of your wealth, please do so after consulting your certified financial advisor and accountant.
Bullion and coins that are being purchased as parts of an investment strategy should be considered a long term investment. For most investors, GGC suggests a holding period of at least 3 to 5 years or longer on certified rare coins and semi numismatic metals. An effective holding period increases chances for profit, may differ from product to product, and may be longer in changing market conditions. Because of the bid-ask spreads, bullion and coins generally are not appropriate for short-term trading strategies, and therefore are better suited to a longer-term holding strategy.
Sales: The purchase price Customer has been quoted and agreed to pay includes GGC profit margin on the transaction. The difference between GGC cost on the day of the purchase (for the Precious Metals Customer has agreed to buy) and the retail price quoted to Customer is known as the “Spread.” Spreads vary significantly - by Precious Metal, by customer, and over time. Spreads may be subject to negotiation, and any Spread charged to Customer in a specific transaction may be more or less than the Spread charged to others in similar transactions or charged to Customer in prior or future transactions.
Re-purchases: The law prohibits GGC from guaranteeing to re-purchase the Precious Metals GGC sells, and GGC does not guarantee that it will re-purchase any Precious Metals that Customer purchases. If you wish to sell your Precious Metals in the future, you can call your sales executive. Should GGC make an offer to re-purchase Precious Metals you previously purchased from GGC, it is GGC current practice, which is subject to change at its sole discretion, to offer to re-purchase Precious Metals that it commonly sells at the highest current wholesale price (offered by GGC suppliers) for such Precious Metals. GGC re-purchase offer may be raised or lowered on a daily, even hourly or more basis, depending upon various market conditions, inventory needs, and the price and availability of comparable Precious Metals. GGC does not guarantee that any re-purchase offer will equal the price that GGC would pay to acquire the same denomination/type and grade of Precious Metal from a wholesaler, or that any offer made will be higher or equal to what someone else might offer for the same Precious Metals. This wholesale price is lower than the retail price at which we sell Precious Metals to customers at or around the same time, and this Spread between wholesale and retail prices is a source of revenue to GGC.
Our prices are set internally, and are constantly changing. Many considerations, internal and external including market conditions, demand, promotions, company performance and expenses, may contribute to the cost of purchasing coins from GGC. Our prices are not necessarily related to, or affected by the prices at which other dealers or institutions buy, sell, or value the same or similar coins. The difference between our sell (ask) and buy (bid) prices is referred to as our bid/ask spread. The typical spread is 10% on commonly bought bullion products, and 20% on certified metals and rare coins. However, these percentages vary, and the actual spread on any specific transaction may be outside the stated typical ranges. Spreads may decrease or increase over time, and bids may change such that the total value of coins purchased may decrease or increase by more than the amount of the bid/ask spread.
Investing in coins and bullion involves risk. The markets for Precious Metals is constantly changing. Though precious metals have always retained some value, GGC makes no guarantee that coins or metals purchased from us may be sold back at a profit, or that investment can be made without risk of loss of principal.
Past performance does not guarantee future results. Markets are constantly changing, and though individuals and institutions may make educated predictions regarding the future of precious metals, investments, and the economy, such predictions cannot be made with certainty. While bullion coins and bars are priced for the most part in accordance with the value of the metal they contain, semi-numismatic and rare coins have numerous other factors that contribute to value. These factors include intrinsic value (metal value), speculative interest, collector and investor demand, available supply, industry promotions, perceived value, and economic conditions. These coins may increase or decrease in value, regardless of and at times in opposition to changes in precious metals spot prices. Grades and descriptions of coins are opinions based on standards and interpretations that can and do change over time. While we guarantee that all the coins we sell are genuine, we expressly disclaim any other warranties, express or implied, including the implied warranties of merchantability and fitness for a particular purpose.
Precious metals and coin investments are not for everyone, and GGC makes no attempt to confirm the suitability of any product for any customer at any time. Regardless of opinions expressed and recommendations made by GGC employees, it is your responsibility as an investor or collector to educate yourself and consider all risks, prices, and policies relating to your purchase.
We never give tax advice. Questions of tax liability and benefits are complicated and can vary from person to person based on each person’s unique tax situation and should be directed to your certified accountant. Though there may be tax benefits assigned to precious metals ownership, and certain products offered may fall under different reporting requirements than others, GGC makes no guarantees express or otherwise as to the tax benefits of owning any product at any time.
GGC account executives are commissioned salespersons - i.e., their salary is based, at least in part, on the amount and profit margin of the Precious Metals they sell. In addition, from time to time, GGC account executives may receive other compensation tied to sales activity - e.g., sales contests; bonuses tied to the sale of certain denominations/types or grades of Precious Metals. GGC account executives are not licensed and their knowledge of Precious Metals and the Precious Metals marketplace varies. As a result, the interests of our account executives can conflict with yours; they earn more money by selling more Precious Metals at a higher price.
Refunds will not be issued under any circumstances on all common bullion products except where expressly guaranteed by individual state law and in accordance with such provisions. GGC will issue refunds on any common bullion products and premium products orders that, subsequent to the signed invoice and or recorded confirmation, it determines it cannot fulfill. In addition, GGC extends to all first-time clients the right to a refund for all premium products without any reason whatsoever, within three (3) days of your initial signed invoice and or recorded purchase price confirmation.
Before investing in any asset, including coins and precious metals, you should ensure that you have a thorough understanding of the costs, risks, and other considerations involved. We take pride in our knowledgeable staff and customer service, and we hope we are able to assist you in educating yourself regarding these products. We suggest that most investors should not invest more than 20% of their assets and if you plan to do so, you should consult with an independent financial advisor. Make sure you can hold your investment for at least 3 to 5 years, and do not go into debt to purchase metals or coins. All markets move up and down, so be prepared in either case, and do your best to make educated and reasonable investment decisions.