Special Report on Gold

SPECI A L R EPORT ON GOLD

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S U P E R I O R P R E C I O U S M E T A L S

A Brief History of Gold

The allure of gold is as old as civilization itself. Manyforms of currency have been used over the years as astore of wealth and means of exchange, including live-stock, tobacco, various precious metals, and paper cur-rencies backed by the governments that issued them.But across the span of history, nothing has been asenduring and universally accepted as gold.

An object of indisputable value is “as good as gold.”Athletes are awarded gold medals as a symbol of beingthe absolute best in competition. Why is it that gold hasemerged as the “gold standard” of currencies?

Monetary historians typically point to four reasons whygold has had such enduring popularity: beauty, inde-structibility, malleability, and rarity.

BeautyGold is a splendid color. Our sun is a golden sun.Indeed, the ancient Incas worshipped the sun as a deityand they used gold throughout their religious rites as asymbol for the sun god. The luster of gold is warm andreassuring. We have a strong, for many even mystical,attraction to gold that transcends that of other naturalsubstances.

IndestructibilityIt is estimated that 150,000 –160,000 tons of goldhave been produced in human history and most of it isstill in existence in one form or another today. Gold doesnot rust, tear, fade, or decay. It is a truly remarkablesubstance. Without question, part of the reason it hasendured as a form of currency is its physical ability tosurvive the ravages of time.

MalleabilityFor all its durability, gold is a soft metal. It can be meltedand molded to virtually any shape. This has made it aflexible tool for artisans throughout the ages. From ves-sels of religious ritual to jewelry to the plating of capitoldomes, gold is an incredibly versatile metal. It has been

used in countless ways as a physical symbol of excel-lence, elegance, and beauty.

RarityGold strikes a special balance of being rare but not toorare. It’s been rare enough to be valued by almost allcultures but it has also been present geographicallythroughout the world so that, from earliest days, it wasperceived as valuable in virtually every corner of theworld. From Africa to Asia to Europe to North and SouthAmerica, gold was one form of currency that was uni-versally valued as a store of wealth by early civilizations.

Early Gold Coin from era of King CroesusKing Croesus of Lydia is credited with minting the firstlarge-scale issue of gold coins in 561 B.C. He was the

first ruler to turn gold into the officialcurrency of his realm. In so doing,he also blended art with his cur-rency to begin a long tradition of

giving coinage value and meaningabove and beyond its intrinsic value

as a precious metal. King Croesus was followed by theGreeks who took particular pride in creating coins thatwere not merely functional but were also beautiful.Indeed, many Greek coins were works of art in and ofthemselves. Their value to today’s collectors is predi-cated far more on their rarity and beauty than on theintrinsic value of the gold from which they were made. Inturn, the Romans admired the coins of their Greek pred-ecessors and emulated their style of elegance and artwhen creating their own coinage.

Gold has been used down through the ages as coinage.From the legendary “pieces of eight” minted by theSpanish to the beautiful St. Gaudens $20 gold piececommissioned by President Theodore Roosevelt. Butgold has always been about more than just coinage.There has also always been a market for gold bullion,pure gold whose value is established independent of anygovernment backed currency.

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Early Gold Coin from era ofKing Croesus

From 1933 to 1975, U.S. citizens were not allowed toown gold, except in the form of jewelry or numismaticrarities (rare coins). The reasons for this go beyondthe scope of this presentation. Suffice it to say, how-ever, that there has always been a world market forgold. And for the last 40 years, many U.S. citizenshave benefited from owning gold as the price hasincreased from approximately $40 per ounce to its cur-rent price levels near record highs.

Independent of its role in coinage, gold has alwaysmaintained its own intrinsic value. Gold has beentraded in its pure form through the many centuries inwhich alternative currencies have come and gone.Charles De Gaulle, former President of France,summed up gold’s position in the hierarchy of curren-cies eloquently:

“Indeed there can be no other criterion, no otherstandard than gold. Yes, gold which never changes,which can be shaped into ingots, bars, coins, whichhas no nationality and which is eternally and univer-sally accepted as the unalterable fiduciary value parexcellence.”

Why Buy Gold?

Why buy gold? There may be as many reasons as thereare people who buy it but the following represents a fewof the most prominent reasons for investing in gold.

Gold is a “Hard” Asset Financial analysts classify gold as a “hard” asset,meaning that it has value in and of itself. Stocks,bonds, and even cash are categorized as “soft” assetsbecause their value is dependent upon your faith in athird party to support the value of the asset.

In the case of stocks or corporate bonds, the value ofthe stock or bond is tied directly to the performance ofthe company that issued it. There is no intrinsic valuein a stock or bond certificate. From the perspective of

intrinsic value, it is literally worth the paper it is printedon! And the same is true of paper currency. The dol-lar bill in your wallet is backed by the full faith and creditof the United States Government. If a majority of peo-ple were to lose faith in the financial credibility of theUnited States Government, it would have a direct andadverse affect on the value of that dollar. Not only that,but the dollar is subject to inflation. “A dollar doesn’tgo as far today as it used to” is a phrase we have heardmany times. And it’s absolutely true! The value of adollar will also vary relative to the strength of otherworld currencies. A U.S. dollar is not worth the samenumber of English Pounds, Japanese Yen, or Eurosfrom day to day.

Alan Greenspan, testifying before congress, said:

“I do think there is a considerable amount of inform-ation about the nature of a domestic currency fromobserving its price in terms of gold. It is a longer-term issue. It is an issue which I think is relevant, andif you don’t believe that, you always have to ask thequestion why it is that central banks hold so muchgold which earns no interest and which costs themmoney to store. The answer is obvious: they con-sider it of significant value and, indeed, they considerit the ultimate means of payment, one which does notrequire any form of endorsement. There is some-thing terribly important that the gold price is tellingus. I think that disregarding it is to fail to recognizecertain crucial aspects of the value of currencies.”

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Many financial advisors will recommend that a diversi-fied portfolio should have some “hard” assets in addi-tion to “soft” assets. And over thousands of years,gold has proved to be the most popular and enduring“hard” asset in the world.

Gold is a Hedge Against InflationWe have not experienced high inflation for the past 20years and, for some, it may be a distant memory. It’salso important to note that current inflation figures pro-duced by the U.S. government exclude oil and food.This produces a lower, more stable number that is alsodeceiving from a consumer standpoint. There’s no get-ting around the fact that when oil and gas prices go up,your dollar is buying less for you. The more it costsyou to heat your house and fill your gas tank, the moremoney you need to meet basic needs. Nevertheless,gold tends to perform well in times of high inflation.Gold is an effective tool for preserving wealth againstinflation over the long term. This was proven empiricallyin a 2000 study conducted by the University of Stirling(Scotland). They compared the monthly gold price tothe U.S. Retail Index from 1976 – 1999 and concludedthat, while short-term results might fluctuate, goldserved as a hedge against inflation over the long-term.

Gold is a “Safe Haven”In times of financial turmoil, when our faith in financialinstitutions - including the government - is strained, thevalue of gold tends to go up. In another section of thisreport, we look at the recent history of gold. You’ll notethat times of significant difficulty in the world tend tocause gold prices to increase rapidly. They are alsolikely to fall when relative calm is restored.Nevertheless, gold represents a portion of your port-

folio that will increase in value at a time when yourother investments are being battered and you’re inneed of a safe haven.

Gold is a Speculative InvestmentGold prices have risen over time. Some of thoseincreases have occurred suddenly and rapidly.Conversely, the price of gold may also be subject torapid declines. As a result of this relative volatility, anelement of the investing public chooses gold as a spec-ulative investment that will allow them to capitalize ondramatic short term gains, should they arise.

Ways to Invest in Gold

The primary purpose of this report is to educate andinform about gold with a focus on gold bullion. Thereare other ways to invest in gold, however, and, whileemphasizing bullion, we’ll also make note of two othercommon ways to invest in gold.

Gold BullionGold bullion is unadulterated gold and is typically boughtin coin form or in small gold bars. Bullion coins shouldnot be confused with numismatic coins, whose valuedepends on their rarity, design and finish more than ontheir fine gold content. Bullion coins are technically legaltender in their country of issue, but this would only befor their face value rather than for their gold content.The first, and most famous, gold bullion coin was theSouth African Krugerrand. It was the first bullion coin tobe marketed as an investment product. Countries rang-ing from Australia to China to Singapore to the UnitedStates of America now market bullion coins.

Gold bullion coins range in size from 1/20 ounce to1000 grams, although the most common weights (introy ounces of fine gold content) are 1/20, 1/10, 1/4,1/2, and 1 ounce. The market value of bullion coins isdetermined by the value of their fine gold content, plusa mark-up that varies between coins and dealers.



Gold bars may be bought in a variety of weights andsizes, ranging from as little as one gram to 400 troyounces (1 kilogram is equivalent to 32.1507 troyounces) which is the size of the internationally tradedLondon Good Delivery bar.

There are approximately 50 accredited manufacturersof small gold bars, producing more than 325 standardgold bars between them. As with bullion coins, smallbullion bars contain a minimum of 99.5% fine gold.

Gold StocksSome people choose to invest in gold by investing instocks of gold mining companies. It is important tonote that such stocks are a “soft” asset, however, anddo not offer the same benefits as owning gold bullion.Nevertheless, gold stocks typically fluctuate in concertwith the price of gold bullion. If there is an increase inthe price of gold bullion, mining stocks will respondaccordingly. Choosing well among mining companiescan lead to superior results.

Numismatic GoldNumismatic gold are rare coins. As noted previously,numismatic gold is valued for its rarity, design, andquality of preservation more than its gold content.Nevertheless, it should be noted that, historically,numismatic gold has outperformed gold bullion as aninvestment. Carefully selected pieces of numismaticgold can offer many of the same benefits as gold bul-lion with even greater financial returns.

The Recent Historyof Gold Prices

1972–1976:1972 marked the beginning of a run-up in gold pricesfrom approximately $40 to well over $100, a mark thatgold would not dip below again, even with all the mar-ket corrections that would subsequently occur. Theearly 70’s marked a period of economic and politicalturmoil. The Vietnam War was going poorly, President


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The Recent History of Gold Prices

The history of gold prices from 1968-2008 (actual and inflation adjusted) are depicted in the chart above.It’s educational to view the rise and fall of gold prices in relation to specific world events during select peri-ods of our recent past - some of those events are detailed on the following pages.

GOLD - MONTHLY AVERAGES 1968–2008$

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Nixon devalued the dollar and inflation was on therise. The price of gold continued to rise as theWatergate scandal escalated and led to the eventualresignation of the President. Gold prices temporarilypeaked in 1975 at almost $200 with inflation on therise, OPEC price increases, and the assassination ofKing Faisal of Saudi Arabia. As the political and eco-nomic situation stabilized, gold prices retreated tothe $100 level.

1978–1982:This period saw a precipitous rise and a not quiteequally precipitous decline in gold prices. Onceagain, political and economic crisis drove goldprices. Double-digit inflation, double digit lendingrates, a recession, a world-wide monetary crisis, andthe Iran hostage situation created a gold frenzy thatdrove prices to their all-time high of $875. With theelection of President Reagan and an improved eco-nomic outlook, the price of gold retreated signifi-cantly but still remained well above its pre-1978 pricelevel.

1983:1983 saw another spike in the price of gold as aEuropean monetary crisis coupled with an extremely highunemployment rate in the U.S. created economic uncer-tainty.

1986–1989:Black Monday, the stock market crash of 1987, ledto a flight to gold that fueled a price increase. TheSavings and Loan crisis, which precipitated a $300billion government bailout, also prompted the price ofgold to move higher still.

1990–2000:A strong economy and a comparatively calm periodin world affairs prompted gold prices to hold steadybefore beginning a steady retreat.


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2000–2008:Our more recent history is fresh in our minds. Economic recession,the attacks of 9/11, decreasing housing prices and the invasion ofIraq laid the foundation for a period of steady increases in the priceof gold. While the price of gold is up over 300% since 2000, it is stillwell below its inflation adjusted high of over $2,200 per ounce.

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1968 – 1980:This period saw a dra-matic increase ofover 540% in the price of gold to well over$800 per ounce.

1972 – 1974:The price of goldquadrupled during thisthree year period.

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THE RECENT HISTORY OF GOLDPRICES – CHARTS OF KEY PERIODS

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The Outlook for Gold

Just as there are bulls and bears in the stock market,there are bulls and bears in the gold market. Over thelast four years, the bulls having been largely correctabout the gold market. Here are some of the factorsthat the bulls have cited for a continued climb in thegold market:

Supply and DemandIn addition to an increased demand from investors,there are also many commercial applications for theuse of gold, from dentistry to electronics. Demand hasbeen ahead of supply for a while now and bulls foreseethis trend continuing.

InflationAs noted previously, U.S. government inflation rates donot include the price of food and fuel. Gold bullsbelieve that current inflation rates are not merely under-stated, they believe they are significantly understated.As this becomes increasingly apparent, they believemore people will look to gold as a hedge against infla-tion, further driving up the price.

Economic & Political UncertaintyThe primary source of uncertainty in today’s landscapeis a sluggish economic recovery and a volatile politicalenvironment in the Middle East. Bulls do not foreseegood news any time soon on these fronts.

In addition to these points made by virtually all analystswho are bullish on gold, Adam Hamilton cited two addi-tional factors in his February 2005 article entitledContending Gold Perspectives:

The Rise of AsiaLike many people, Mr. Hamilton notes that China isa looming economic giant. He believes that China,India, and other Asian cultures have historicallyplaced a higher value on gold as a means of wealthand currency than other cultures. He states that:

“As Asian citizens and investors grow wealthier,their traditional love of gold will ultimately lead tohuge amounts of capital shunted into physical goldas they diversify their investments”.

Information Free MarketsMr. Hamilton believes that the advent of Internet technology has fueled the price of gold and will continue to do so. He states that:

“Today investors around the world can easily learnabout monetary history, stock-market history, gold,the immoral stealth tax of inflation, and countless other crucial core topics essential to long-term wealth building.”

He contends that this increase in knowledge on the partof investors will lead to increased investing in gold.

In the long-term, however, we believe the issue isn’treally about bulls or bears; it’s about having an appro-priately diversified portfolio that is balanced to serveyour financial objectives. Most financial advisorsbelieve there is a role for gold in almost anyone’s port-folio. It’s a question of how much gold you should hold.



How to Choose a Gold Firm... A Checklist for InvestorsOver the years, we’ve developed a great deal of experience in acquiring gold for investors’ portfolios. We’ve workedwith highly experienced gold investors and people who are making their very first gold purchase. We’ve worked withmany people on an exclusive basis as well as some who work with multiple firms. Given our wide range of clients, we’vedeveloped some strong opinions on how a firm involved in the sale of gold and rare coins should conduct themselves.Certainly, we hope you choose Superior Precious Metals to make any gold purchases on your behalf. But no matter whoyou work with, it’s been our experience that you should work with a firm that meets a certain set of criteria:

� It’s critical that you work only with firms that have been around a long time.Five years at a minimum…ideally ten years or more. As gold begins to rise, new firms will come “out of the wood-work.” Some will be solid, but many will not. Firms ten years old or more have been around through thick andthin. They are dedicated to the gold market and are usually owned by and employ professionals who truly believein the gold market. These are the best firms with which to establish a long-term relationship.

� Check for credentials and professional affiliations.What are the professional organizations to which the firm belongs? Make sure they are members of PNG (theProfessional Numismaists Guild). Request written information about the firm. Do not buy until you have reviewed itand checked out the firm. Most of the better firms have literature you can request which will contain much of theinformation you need to conduct your due diligence.

� Understand exactly how transactions are going to take place.When is the price set? You should expect to take delivery of the gold (some less reputable firms will ask that theyhold on to the gold – this is a big red flag). How long should you expect for delivery? Bullion and bullion coinsshould come to you within ten business days. Semi-numismatic (semi-rare coin or pre-1933 U.S. gold coin) andnumismatic (rare coin) transactions may take longer. Make sure delivery times are within these industry standards.If they are not, it is yet another red flag.

� Understand exactly how you might liquidate your investment.Firms may have many “great investments,” but what about when the time comes to capture any gains you make onthe purchase? You should understand what means are available to liquidate any inventory you amass. Sometimesfirms will make a secondary market through sales to other collectors, auctions, etc. This can be very helpful.

� Understand price margins and – critically – buy/sell spreads.Many disreputable dealers make their money by “gouging” buyers with overtly high spreads. Ask questions aboutthe buy/sell spread when you’re interviewing potential firms and check the answers by comparing their claims withwhat other firms tell you.

� Beware of sales pitches.If the firm calls you repeatedly with one “unbelievable deal” after another, be careful – it may well be unbelievable. If they persist in trying to sell you something in which you have no interest, this is another red flag. Resist and seekmore information and other opinions. Do not make a decision until you have received sufficient information.Remember…gold is a great investment. It virtually “sells itself,” so any firm that has to resort to aggressive sell-ing tactics should be viewed with suspicion.

� Check and compare pricing.Cheaper is not always better. In fact, below market pricing should be a major concern. If a deal sounds too goodto be true, it probably is.

� Trust referrals.As with most things, sometimes the best firm to deal with is the one you are referred to by a trusted friend or fam-ily member who has experience with that firm.

� If you receive information from a good firm, and you like what you see and hear, go with them.If you have the slightest doubt, especially if the firm does not sufficiently meet the criteria above, then go back tosquare one and start over. Naturally it’s always better to be safe than sorry.


Gold Terms DefinedThe following terms and definitions related tothe gold market are from materials provided by theWorld Gold Council:

Account – allocated: An account in which the client'smetal is physically identified as his; he becomes a securedcreditor of the holding bank.

Account – unallocated: An account in which the client'sbars are not specifically ring-fenced, and which is cheaperthan an allocated account in that storage charges are obvi-ated. The client carries higher counter-party risk, however,as he is an unsecured creditor.

Assay: To test a metal for purity.

Backwardation: The difference between a forward price and a nearby price when the latter exceeds the former.

Bar: Typical gold product, either for trading or for accumulation. Bars come in a variety of shapes weights and finenessand different bars are favoured in different parts of the world; see the weights conversion table in the Discover domain.

Bear: Someone expecting prices to fall.

Bid/ask: Bid or buy is the price a dealer is prepared to pay for gold bullion. Ask or sell is the price offered by theseller. (See also, the definition of “Spread”.)

Bull: Someone expecting prices to rise.

Bullion: Originally meaning melting place, from the French bouillon, boiling, derived from the Latin bullio.

Bullion coin: A legal tender coin whose market price depends on its gold content, rather than its rarity or face value.

Certificates: Gold certificates are a method of holding gold without taking delivery. Issued by individual banks theyconfirm an individual's ownership while the bank holds the metal on the client's behalf. The client thus saves on stor-age and personal security issues, and gains liquidity in terms of being able to sell portions of the holdings (if need be)by simply telephoning the custodian.

CFTC: Commodity Futures Trading Commission, the regulatory body in the US covering futures markets.

COMEX: The New York Commodity Exchange, now a division of NYMEX, the New York Mercantile Exchange. The con-tracts in the COMEX gold market consist of 100 ounces each, and the actively traded contracts are the even monthsof the year.

Consignment stocks: A bullion dealer may hold gold on consignment at a client's premises. It is the dealer's prop-erty until the client withdraws it and pays the prevailing price. Alternatively, it may be held by the dealer at local banksuntil the clients come forward to purchase and take delivery.

Contango: The difference between a forward price and a nearby price when the former exceeds the latter. This is theusual situation in gold and if there is no constraint anywhere along the supply pipeline then the contango will reflectprevailing interest rates and storage charges.



Deferred settlement: A situation in which the settlement of a bullion market contract is deferred daily.

Delivery: The transfer of the asset from seller to buyer. This does not necessarily involve physical shipment but canbe done on paper with the bullion remaining in the vaults of a specified bank.

Dor: A gold-silver alloy, an intermediate product from certain gold mine

Face Value: The nominal value given to legal tender coin or currency (for example a 1-oz. Gold American Eagle coinhas a face value of $50).

Fineness: Gold purity, usually expressed in parts per thousand; thus 995 or two nines five is 995/1000 or 99.5%pure. 995 was the highest purity to which gold could be manufactured when good delivery (q.v.) was determined, butfor very high technology applications now it is possible to produce metal of up to 99.9999% purity.

Fix: The London gold fixing (see: www.goldfixing.com) takes place twice daily over the telephone. The current fourmembers of the fix meet at 10:30 and 3:00 London time and commence the fix with a trying price. Once Rothschild’sseat has been sold, there will once again be five fixing members. The fixing members’ representatives relay the pricedown to their dealing rooms, who are in contact with as many bullion dealers as are interested (or who have interestedclients) and these market members then declare how much metal, on a net basis, that they require to buy or sell atthat level. The dealers are themselves in contact with their clients, who may change their order, or add or cancel anorder, at any time. The position declared by the dealers is the net position outstanding between all their clients (i.e. ifone bank has clients wanting to buy a total of two tonnes, and other clients wanting to sell a total of one tonne, thenhe declares himself as a buyer of one tonne). Each fixing member then nets off the position and declares himself, asthe representative of all those interested parties, as a net buyer or seller (and of how much), or to be in balance. Ifthe market is out of balance with more gold required than offered, then the price will be adjusted upwards (and viceversa) until balance is achieved (because some clients will pull out if the price does not suit them). At this point theprice is fixed. On very rare occasions the price will be fixed when there is an imbalance, at the discretion of the chair-man of the fix. The fix is thus entirely open and any market user may participate through his bank.

Futures contracts: An agreement to buy or sell a specific amount of a commodity or financial instrument at a par-ticular price on a stipulated future date; the contract can be sold before the settlement date. Futures contracts arestandardized and are traded on margin on futures exchanges, such as TOCOM or the COMEX division of NYMEX.

GOFO: The Gold Offered Forward Rate, which is the rate at which dealers will lend gold against US dollars.

Gold Forward Offered Rate (GOFO): See above

Gold Loan: A financing mechanism whereby gold is borrowed from a bullion bank (which has usually borrowed it froma central bank or banks), and sold into the market to raise cash, usually to finance a gold mining operation. The metalis then repaid over an agreed period of time. The interest on the loan is usually paid either in dollars or in gold sub-ject to the agreement between the counter-parties.

Gold Standard: A monetary system based on convertibility into gold; paper money backed and interchangeable with gold.

Good delivery bars: Also referred to as large bars, the ingots that conform to London Good Delivery standard.

Good delivery standard: The specification to which a gold bar must conform in order to be acceptable on a certainmarket or exchange. Good delivery for the London Bullion Market is the internationally accredited good delivery stan-dard. A good delivery bar for London should weigh between 350 and 430 ounces (gold content), of minimum purity99.5% (two nines five). Further specifications can be obtained from the LBMA.Grain: One of the earliest weight units used for measuring gold. One grain is equivalent to 0.0648 grams.

Hallmark: Mark, or marks, which indicate the producer of a gold bar and its number, fineness, etc.



Hedging: The use of derivative instruments to protect against price risk.

Karat: Unit of fineness, scaled from one to 24. 24 karat gold (or pure gold) has at least 999 parts pure gold per thou-sand; 18-karat has 750 parts pure gold and 250 parts alloy, etc.

Kilo bar: A bar weighing one kilogram -approximately 32.1507 troy ounces.

Lakh: A trading term meaning 100,000, deriving from the Indian word of the same meaning.

LBMA: The London Bullion Market Association acts as the coordinator for activities conducted on behalf of its mem-bers and other participants in the London Bullion Market, and it is the principal point of contact between the marketand its regulators.

Legal tender: The coin or currency which the national monetary authority declares to be universally acceptable as amedium of exchange; acceptable for instance in the discharge of debts.

Liquidity: The quality possessed by a financial instrument of being readily convertible into cash without significantloss of value.

Loco: The place at which gold is held and to which a delivery price applies. London is the common denominator world-wide and represents the basis for international trading and settlement in gold and silver. Lot Alternative term for afutures contract.

Margin: A deposit required to be put up before opening a futures, forward or option contract.

Margin (initial): The amount of money deposited per contract at the start of the trade.

Margin (maintenance): A sum that must be maintained on deposit throughout the life of the trade.

Margin call: Money that is called for from the client, during the life of the transaction, to cover exposure resultingfrom an adverse price movement (or an endemic increase in margins by the exchange).

Market Maker: A dealer who makes a market, i.e. quotes bid and offer prices to counter-parties and is prepared todeal at those prices.

Numismatic: Coins that are valued for their rarity, condition and beauty beyond the intrinsic value of their gold con-tent. Generally, premiums for numismatic coins are higher than for bullion coins.

Pennyweight: An American unit of weight for gold. Twenty pennyweights equal one ounce.

Restrike: A modern replica of previously issued coins. Governments and their mints can choose to restrike a previ-ous issue rather than introduce new coinage.

Spot price: The price for spot delivery which in the gold market is two days from the trade date.

Spread: The difference between Bid (the price a buyer is prepared to pay for gold) and Ask (the price a seller offers) prices.



ConclusionNo method of storing or exchanging wealth has survived so long or so well as gold.Financial advisors are nearly unanimous in their assertion that a portion of anywell-diversified portfolio must be dedicated to gold. Whether goldprices will rise or fall in the short-term is impossible to predictwith certainty. Based upon historical evidence, however, onecan safely predict that gold will serve as a secure store ofwealth, a safe haven in times of turmoil, and a superiorhedge against inflation.

About Superior Precious Metals

Superior Precious Metals and its parent company Superior Galleriestrace their history to 1930 and have been faithfully serving clients for over 75

years in the rare coin and precious metals markets. As one of the largest and most highly

regarded companies in our field we specialize in matching both sophisticated numisma-

tists and brand new investors with the high quality rare coins and precious metals that meet

their portfolio’s needs.

In 2007, Superior Galleries was acquired by DGSE Companies, Inc. (AMEX: DGC). This event marks the continuing

expansion of services of the DGSE family of companies. Superior’s acquisition by DGSE demonstrates a long-term

commitment to the bullion and rare coin industry, believing that hard assets should be a key component in the diver-

sified portfolios of our high net worth clients. Both Superior’s and DGSE’s continued involvement with numismatics and

precious metals is strong evidence of the stability and value represented by timely, strategic investments in bullion

and rare coins.

Since our founding, Superior has grown into one of America’s premier rare coin and precious metal dealers by never

wavering in our attention to the interests of our clients. Combining a unique blend of industry expertise, longevity, and

financial strength, we are able to offer a complete range of services to any investor. The next time you are ready to

buy, sell, or trade precious metals or rare coins, Superior Precious Metals will be happy to put over 75 years worth

of experience to work for you.

11311 Reeder Road, Dallas, TX 75229 | Toll-Free: (888) 741-4549 | www.SuperiorPreciousMetals.com

Special Report on Gold

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