COIN FACTS FOR INVESTORS AND COLLECTORSTO CONSIDER

ABOUT GOLDLINE

Goldline International, Inc. assists investors and collectors with a full range of rare coins, rare currency, and precious metals. We also provide free information to help collectors and investors choose their acquisitions. Among other things, we exclusively produce and sponsor The American Advisor radio show which is broadcast weekdays throughout the United States and streamed on our website at www.Goldline.com. Our website contains helpful information such as precious metal spot prices, charts and coin information for our more popular bullion and rare coin products.

Goldline traces its corporate history to 1960. We are proud to have continuously served collectors and investors for nearly 50 years. We consider ourselves "market makers," offering to buy and sell a wide variety of precious metals and rare coins on a daily basis.

When acquiring products from Goldline, clients have the option of either taking prompt delivery or storing their acquisitions with a third party storage facility (some restrictions may apply).

We also offer an accumulation program that enables clients to acquire coins or precious metals on a regular monthly program. The accumulation program allows you to decide the dollar amount ($100/month minimum) of your monthly acquisition. It is convenient and puts the power of dollar cost averaging to work for you.

We are proud of our staff. They include numismatists, editorial and pricing consultants and public speakers discussing the benefits of owning rare coins and precious metals.

With a strong financial footing, Goldline has prospered through recessions as well as booms. Goldline's financial statements are audited annually by an internationally recognized independent certified public accounting firm.

We are a recognized leader in the rare coin industry and pride ourselves on excellent service and personalized attention to our clients.

Goldline's Director of Business Affairs is your personal concierge and is available to answer any questions you may have. You can reach our Director of Business Affairs at 1-800-827-4653.

We offer rare coins and currency which are fully guaranteed for authenticity and quality. Goldline provides a seven (7) day unconditional money back refund privilege on your first transaction for certified rare coins, precious metals and rare currency purchased from our company. (See our "Refund Policy" for details). We maintain a large inventory of rare and bullion coins which enables us to provide our clients with prompt delivery.

We are proud of our reputation in the coin community. We invite you to check our credentials and our reputation. Conduct your due diligence before you acquire rare coins, bullion and rare currency from any firm. We are confident that Goldline International, Inc. will be your choice for rare coins, precious metals and rare currency.

FACTS, RISKS AND POLICIES COLLECTORS AND INVESTORS SHOULD KNOW

DIVERSIFICATION:
We recommend that rare coins and bullion be part of a diversified investment portfolio. We believe that coins and bullion are appropriate for 5% to 20% of a portfolio. (If you choose to invest more than this recommended amount, you should first consult your independent financial advisor before proceeding with your acquisitions.) Certain individuals or organizations might recommend a different percentage. We also believe portfolios should contain equity and fixed income assets as well as appropriate insurance.

HOLDING PERIOD:
If you are purchasing coins, bullion or rare currency for investment purposes, they should be considered a long-term investment. We believe that rare coins and currency should be held for at least 3 to 5 years and, preferably, 5 to 10 years to maximize your potential for gains. Any specific holding period may be affected by current market conditions which may require a longer or shorter holding period.

IRA ACCOUNTS:
Goldline may refer clients to companies that provide trustee and custodian services for Individual Retirement Accounts ("IRA"). Goldline is independent from and not affiliated with any of these IRA companies. The client is responsible for independently selecting the IRA company suitable for the client. Goldline does not share or assume responsibility for any loss or damage resulting from a client's relationship with the IRA company. Only certain coins may be held in a precious metals IRA. Many clients choose to purchase proof U.S. coins for their IRAs. You should know that proof coins carry numismatic or rare coin spreads. See "Our Prices" section for more details.

LIQUIDATION:
When you decide to sell your coins or currency, we would appreciate the opportunity to purchase them at our current bid/buy price. We believe we will offer you more for coins and currency than other coins dealers. Alternatively, you may elect to sell your acquisitions to other coin dealers, at private treaty or through one of the many rare coin auctions throughout the country. Please see the section entitled "Liquidity" for more information regarding the sale of precious metals, rare coins and rare currency.

DELIVERY:
All packages shipped to our clients are insured for full value. Your acquisitions will be delivered within 14-28 days of payment of good funds (unless your State requires a different delivery period). If a shipment is lost or damaged, at Goldline's option, we will either replace the items or refund your purchase price. Please inspect the shipment thoroughly upon receipt to ensure you have received your order and that the items track the description on your delivery invoice. Any variance from your order must be reported within (5) days of receipt of your shipment and you must have all original packing materials intact.

STORAGE:
Goldline stores client holdings in a depository of its choice and may change depositories without prior notice. Goldline may comingle your holdings with those of other clients and acknowledges that you own a specific, but undivided interest in such holdings to the extent of the quantity and type you have purchased. A fee is charged for storage.

CREDIT CARD PURCHASES:
You may choose to use your credit card to purchase some products. However, we do not recommend that you go into credit card debt to make a purchase with Goldline.

RISK:
All investments involve risk - - coins, currency and bullion are no exception. The precious metals, rare coin and rare currency markets are speculative, unregulated and volatile and prices for these items may rise or fall over time. Goldline does not guarantee that any client buying for investment purposes will be able to sell for a profit in the future.
The value of a bullion coin (e.g., Canadian Maple Leaf or South African Krugerrand gold coins) is determined by the current spot or market price of bullion. This price fluctuates daily.
The value of a numismatic or rare coin is determined by a multitude of factors which can and do fluctuate independently from bullion prices. These factors include: the perceived scarcity of the coin, its quality, current demand, market sentiment, and economic factors.
Bullion, rare coins and rare currency can go down as well as up in value. These items may not be suitable for everyone.
Goldline does not determine the suitability of any specific person to purchase rare coins, bullion or rare currency. You should consult with your independent financial advisor regarding whether an investment in rare coins, bullion or rare currency is right for you. You should not acquire any products from Goldline if you are not competent or qualified to make your own financial decisions. You should obtain a thorough understanding of the coin and bullion products before you acquire these products as a collector or investor.
Since rare coins, bullion and rare currency can decline in value, you should have adequate cash reserves and disposable income before considering acquiring a coin, currency or precious metals.
We do not recommend early withdrawal from accounts or securities which may result in substantial penalties or fees. You should consult with your independent financial advisor before disposing of any security, annuity, Certificate of Deposit or other investment to acquire rare coins, currency or bullion.
Goldline is not responsible for any changes in tax laws or other statutes which may affect any profit or salability of your coins or currency.

OUR PRICES:
There is a price differential or "spread" between our selling price (the "ask" price) and our buy-back price (the "bid" price). This is often referred to as a "transaction cost."
A typical spread on our most common bullion coins (e.g. Canadian Maple Leaf or South African Krugerrand gold coins) is approximately 4% to 7%. Our spread on semi-numismatic coins, rare or numismatic coins and rare currency ranges between 30% and 35%. Examples of coins which have a spread between 30% and 35% include the Swiss 20 Franc, the First Strike certified coins and the Morgan and Peace silver dollars.
With the exception of the most common 1 oz. bullion coins, Goldline charges clients its numismatic spread (which ranges between 30% and 35%) on coins and currency. To earn a profit upon resale to us, your coins, currency or bullion must appreciate sufficiently to overcome this price differential.
To illustrate how this spread works, consider the following example. If the spread on a coin is 30% and Goldline's ask/sell price is $500 for the coin, then Goldline's bid/buy price is $350. Your coin must appreciate more than $150 to earn a profit. If you choose to sell your coin back to Goldline, you must also pay a 1% liquidation fee (the minimum liquidation fee is $15). Purchases of less of $1,000 are subject to a small lot fee of $15.
Our prices are set internally based upon our analysis of a variety of factors and are not necessarily tied to the prices quoted by any other organization. The prices charged by Goldline for coins are subject to change based on market conditions. Our total profit before operating expenses may be more or less than our spread based on various factors selling price (the "ask" price) and our buy back price (the "bid" price).
including, but not limited to: quantity purchasing, favorable or unfavorable purchases, and positive and negative market conditions.
Goldline acts as a principal, not as a broker, and generally owns the coins and precious metals it buys and sells.

EXCHANGE TRANSACTIONS:
Goldline does not recommend exchanging rare coins and/or currency (trading one coin or currency for another) unless you fully understand the costs involved in the buy and the sell transactions. Among other things you should consider the spread for each item involved in any exchange transaction since you must overcome both spreads before you make a profit. If someone recommends one coin or currency over another it may be his or her personal opinion, but no one can tell with certainty that one product is going to outperform another.
You should independently decide whether this type of transaction is appropriate for you.

REFUND POLICY:
For your protection and convenience, Goldline provides clients with the right to a refund on their first transaction for numismatic coins and currency without any reason whatsoever (this refund policy does not apply to bullion purchases.) To receive a refund, the client must notify Goldline of his or her cancellation of their first transaction within seven (7) calendar days from the date the written trade confirmation is mailed to the customer (based upon the postmark) or delivered to a third-party carrier such as FedEx. All other transactions are final upon taped confirmation by a Goldline representative and are not subject to cancellation. (Your State may have additional refund and cancellation rules which supersede Goldline's refund policy, above; please consult the terms and conditions set forth on the back of your trade confirmation for specific rules which may apply to your purchase.)
If you do not pay for your order and do not have a right to cancel, Goldline may at its option liquidate a portion of your stored holdings and apply the proceeds to your unpaid order. In addition, Goldline may place your account in bad standing which means Goldline will not repurchase your coins or currency.

ACCOUNT EXECUTIVES:
The Account Executives at Goldline are generally commissioned salespersons. Their commissions are usually greatest on rare coins and semi-numismatic coins and least on bullion related products. Their work experience, knowledge, background, and training vary widely. They and/or Goldline may receive, from time to time, undisclosed compensation for recommending specific coin or currency products (including but not limited to contests, cooperative advertising, and trading profits in coins that they may own and/or sell).
Goldline's employees are not licensed as investment advisors and are not authorized to recommend the purchase or sale of any product or investment other than the products specifically sold by Goldline. Check with a licensed professional with expertise in a particular market before making a decision to buy or sell any security, bond, annuity or financial instrument.

LIQUIDITY:
Of the products that we buy and sell, bullion and bullion numismatic coins are more liquid than numismatic/rare coins. Goldline Sometimes, because of its market influence, when Goldline stops recommending an individual semi-numismatic or numismatic coin, its price may drop.

BUY-BACK POLICY:
The law prohibits us from guaranteeing to repurchase the coins we sell, although we have always made buy-sell markets in bullion and rare coins we offer. Therefore, our buy-back policy is not a guarantee and is subject to change without notice. We post our price indications on bullion and bullion coins on weekdays and will quote them upon request. You can check our website at www.Goldline.com for current price indications. On rare coins, it is our policy to offer to repurchase coins sold by us at the then current bid/buy price. Clients who purchased coins from Goldline may be allowed to resell those coins to Goldline at a bid price higher than the price paid to clients who did not purchase coins from Goldline. While our company is not obligated to do so, we continue to make a market for the coins we sell, have historically done so, and intend to continue to do so in the future.

GRADING:
Our company uses the numerical Mint State (MS) grading MS-70. Typically, the higher the grade, the more a coin or currency is worth. The grade assigned to a coin reflects its strike, luster, marks, scratches, and overall eye appeal. Grading is a subjective art and subject to the opinion of the person grading the coin or currency. Thus, grading can and does vary from rare coin firm to rare coin firm, from grading service to grading service, and from expert to expert. A difference of one grade (e.g., MS64 to MS65) can result in a significant change in the valuation of a rare coin or currency. Grading standards may continue to change, becoming more or less stringent. Grades and descriptions of rare coins and currency are opinions, not statements of fact or guarantees, and are based on standards and interpretations that can and do change over time.
When you acquire a coin or currency from Goldline that is independently graded by a third party grading service, such as Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC) for coins and Currency Grading & Certification Incorporated (CGC), Paper Money Guaranty (PMG) or PCGS Currency for rare currency, please note that Goldline relies entirely on the expertise/determination of the grading service. We do not re-grade or independently evaluate the product's grade in its sealed holder, although from time to time Goldline does remove products from their sealed holder and re-submits them to the grading services. Goldline reserves the right to deliver independently graded coins that have been graded by an independent grading service of Goldline's choice, such as PCGS or NGC.
Goldline guarantees that the rare coins and other items it sells are genuine.
Goldline expressly disclaims any other warranties with respect to coins or system which rates rare currency and uncirculated coins from MS-60 to other items, express or implied, including the implied warranties of merchantability and fitness for a particular purpose.

GROWTH PROJECTIONS:
Goldline may advise clients about forecasts made by members of our staff or third parties regarding the future prices of precious metals or the products sold by Goldline. In making those projections, Goldline's staff members will normally consider the following factors:

• Past performance: While past performance is a useful guide, it is not a guarantee of future results. We frequently assume that if rare coins or bullion made gains under certain economic conditions in the past, they have the potential to appreciate when similar conditions exist in the future.
  
• Economic forecasts: It is impossible to predict future price trends or economic conditions. However, we apply research, common sense, and logic in an effort to forecast future trends. We believe these trends are a useful guide in evaluating the future potential for rare coins and bullion.
  
• Supply and demand: We believe that fundamental market forces will generally prevail. Therefore, we take into consideration changing supply and demand factors and our expectation of future trends of supply and demand.
  

FOR YOUR PROTECTION:
Telephone calls may be monitored and/or recorded in an effort to assure quality control and policy compliance.
Your privacy is important to us. If at any time you no longer wish to be contacted by a Goldline representative, please call or write to us and ask to be placed on our Do Not Call list.
If at any time you receive information that is inconsistent or contrary to the information contained in this booklet, you should immediately contact Goldline's Director of Business Affairs at 1-800-827-4653. Please do not proceed with any transaction until your questions or concerns have been fully answered.
Please make all payments payable to Goldline International, Inc.
Please do not send cash. Your payment options are: Bank wire, cashiers check, personal check and credit card. Please no money orders or Traveler's Checks.
All metal/coins/currency must be sent U.S. Postal Service (registered insured, return receipt requested) to: THE AMERICAN ADVISOR, 1601 Cloverfield Boulevard, 100 South Tower, Santa Monica, CA 90404.
Check with your Account Executive for special packaging and address requirements.
Please promptly notify us in writing if you change your address or want to change your account title and include a signature guarantee or notarized letter plus a copy of your driver's license or a utility bill. Be sure to include your account number and sign all correspondence.
This risk/disclosure booklet is updated periodically. It is the responsibility of the client to keep up to date by either requesting a copy or by checking our website at www.Goldline.com.

SUMMARY:
We strongly recommend that you acquire a sound understanding of precious metals, coins, and their markets before you make your first purchase. Be prepared to invest some time and effort into understanding the market and the grading of your coins or currency. Do not commit more than 5% to 20% of your investment funds to rare coins or precious metals. Protect your future with a diversified portfolio that meets your objectives for safety, liquidity, and growth. Be prepared to hold your coin, bullion and currency investments for a minimum of 3 to 5 years, recognizing that all markets have their ups and downs. Perform your due diligence and let reason and common sense be your guide.

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