Disclosures - CTGroup - Century Tangibles Group

FACTS AND DISCLOSURES

FOR INVESTORS AND COLLECTORS

INTRODUCTION

CTGroup works with investors and collectors interested in tangible assets. CTGroup believes that education is the foundation of every sound investment decision and is dedicated to providing investors and collectors with all the information they need to make the most appropriate decisions to meet their specific goals. These Facts and Disclosures for Investors and Collectors are meant to further that purpose.

As proof of our commitment to education, CTGroup has created the University of Rare Coins, which provides detailed, in-depth information on virtually every rare coin in existence to ensure investors and collectors have the appropriate information to make the most informed decision possible.

CTGroup’s Customer Account Agreement sets forth the terms and conditions of your transactions with CTGroup. Please review this agreement carefully before you sign and return it to CTGroup.

PRICING POLICIES

CTGroup has a very competitive pricing schedule designed to pass value along to our customers. Our prices fluctuate constantly with changing market conditions and many considerations, such as supply, demand, promotions, company performance, and expenses may be factored into the price of an item at any given time.

CTGroup’s prices are not necessarily related to, or influenced by, the prices at which other firms offer, purchase or value the same or similar products. The difference between our sell (ask) and buy (bid) prices is our bid/ask spread. That spread generally ranges between 2% and 10% on commonly traded bullion products, and between 10% and 25% on semi-numismatic coins and rare coins. Spreads may decrease or increase at any time with changing market conditions and may vary from asset to asset.

Rare coins, semi-numismatic coins and precious metal bullion products must appreciate by more than the amount of the bid/ask and/or commission spread before they can be sold for a profit.

TWO WAY MARKET

CTGroup is a major buyer of rare coins, semi-numismatic coins and precious metals. If you wish to sell coins or metals products we encourage you to offer them to CTGroup first, though we cannot guarantee that our bid will equal or exceed bids which you may receive from other firms in the market. Should CTGroup make a bid on your coins or metals, it is our current practice, which is subject to change at our sole discretion, to offer to buy coins at our current bid price (the price at which we buy back coins sight-unseen from our clients). That bid price is raised or lowered on a daily, even hourly basis, depending upon the various market conditions, CTGroup’s inventory needs, and the price and availability of comparable coins.

PAYMENT PROCESSING

CTGroup accepts payment by bank wire or personal check. Prices on bullion orders cannot be locked in (fixed) until receipt and verification of good funds, a tape-recorded telephone confirmation, and receipt of a signed Customer Account Agreement. All orders over $100,000 must be paid via bank wire and, from time to time, CTGroup may place dollar amount restrictions on certain payment methods. Investors should never go into debt to make an investment.

DELIVERY AND REFUND POLICY

All products shipped by CTGroup are insured until signed for by the recipient. Orders paid for by check will not ship for a minimum of twelve (12) business days after receipt of payment. Orders paid for by bank wire may be shipped in less time, subject to product availability. Shipping times and schedules are affected by many factors beyond CTGroup’s control and may change without prior notice. Your products will be delivered within 28 days of payment of good funds (unless your state requires a different delivery period). In the event of a lost or damaged shipment, CTGroup will, as elected in CTGroup’s sole discretion, either replace the order as originally confirmed, or refund the customer’s purchase price.

When you receive your order, you should carefully inspect the contents and report any discrepancies to CTGroup immediately. Any discrepancies in deliveries must be reported to CTGroup within five (5) days of receipt of your order, and all original packing materials must be retained and kept reasonably intact. After expiration of the five (5) day period, all deliveries are deemed received and final and you have waived any objections you may have.

Refusal to accept packages or returning packages to CTGroup does not entitle the customer to a refund. Refused or returned packages will be considered for liquidation, not a refund, and will be liquidated at the then current bid price, which could be less than the original purchase price.

For your protection and convenience, CTGroup provides clients with the right to a refund on their first transaction for coins and currency without any reason whatsoever (this refund policy does not apply to bullion purchases.) To receive a refund, the client must notify CTGroup 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. Notice must be in writing via US Mail, facsimile or email and sent no later than the last day of the refund period as determined by the postmark if mailed, date of fax transmission if faxed, or date of email as set forth in the email header. All other transactions are final upon taped confirmation by a CTGroup Account Executive and are not subject to cancellation.

WEBSITE INFORMATION

The information that we provide or that is derived from our website is for general information only and is not to be treated as advice to make any specific investment. We have taken reasonable precautions to determine that the information we provide or that is contained in our website has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on industry approved practices and principles. However, the market forces underlying investment value are subject to sudden and dramatic changes affecting data availability and, consequently, we do not guarantee the accuracy or completeness of this information. Past performance is not indicative of future results.

IRA ACCOUNTS

CTGroup may also refer customers to companies that provide trustee and custodian services for precious metal and rare coin Individual Retirement Account (IRA) transactions. These custodians are independent of CTGroup and CTGroup neither assumes nor shares any liability or responsibility for loss or disputes arising between the customer and the custodian. Tax laws are complex and may change at any time. You should consult with your tax advisor about whether including precious metals in your IRA is right for you. Investors are highly encouraged to conduct their own due diligence in choosing a storage depository or IRA plan custodian.

ACCOUNT EXECUTIVES

CTGroup maintains a sales force of helpful and knowledgeable Account Executives. These Account Executives have varying backgrounds and levels of experience. They are not licensed investment advisors and are not authorized to provide advice on the purchase or sale of any products or assets other than those specifically offered by CTGroup.

The Account Executives are generally commissioned salespersons. Their commissions are usually greatest on rare coins and semi-numismatic coins and least on bullion related products. They are never permitted to diverge from, change or alter in any way the policies set forth in this document. Any statements, warranties or guarantees made by an Account Executive that contradict what is in this disclosure document are not binding on CTGroup. In the event you are advised by an Account Executive of anything that is inconsistent with the policies and procedures detailed in this document, you should not rely on such statement and should contact CTGroup immediately to report and clarify any such discrepancy.

Before liquidating any asset or financial position to acquire rare coins, semi-numismatic coins, or precious metals, you should consult your financial advisor familiar with those markets and investments. CTGroup never gives tax advice and we do not speculate as to the tax consequences of purchasing or selling rare coins, semi-numismatic coins, or precious metals, or any other investment or asset. Investors must consult their tax advisor on any issues involving tax implications.

PRIVACY AND SECURITY

You should make arrangements for the safe storage of your rare coins, semi-numismatic coins, and precious metals before you invest. Should you choose to send rare coins, semi-numismatic coins, or precious metals back to CTGroup for liquidation, you may mail them to 114 Pacifica, Suite 400, Irvine, CA 92618, via US Postal Service Express Mail or Federal Express. Packages being shipped must show no exterior reference to rare coins, semi-numismatic coins, precious metals or valuables in any way. Consult your CTGroup Account Executive before shipping for specific instructions. Never tell the mail carrier, post office or courier personnel what you are shipping.

RISK DISCLOSURE

Like all forms of investment, investing in rare coins, semi-numismatic coins, and precious metals involves risk. CTGroup does not, and cannot, make any guarantee that rare coins, semi-numismatic coins, or precious metals purchased from us may be sold back at a profit or that any such investment can be made without the risk of loss of the principal amount of your investment. Past performance is no guarantee of future results. All investment markets are constantly fluctuating and even educated predictions regarding the future of the rare coin market, semi-numismatic coin market, precious metals market, the financial markets and the broader economy cannot be made with certainty.

CTGroup is not a registered investment advisor. We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from us or derive from our website.

Rare coin, semi-numismatic coins, and precious metals investments are not suitable for everyone and it is the sole responsibility of the investor to determine his or her suitability after educating himself or herself and considering the various risk factors involved. CTGroup recommends that you consult with your financial advisor before making any investment decision.

There is a broad assortment of alternatives for investors contemplating an investment in tangible assets, such as rare coins, semi-numismatic coins, or precious metals. These various options offer different features and benefits, as well as risk factors, in addition to different sales charges, fees and costs associated with their acquisition.

INVESTMENT PERFORMANCE

Rare coins, semi-numismatic coins, and precious metals have demonstrated an excellent record as appreciating assets. CTGroup believes that rare coins, semi-numismatic coins, and precious metals are excellent long-term investments, but the future is never certain. The past performance of rare coins and precious metals is a guide, not a prediction, of future events. CTGroup is always prepared to assist you in selecting rare coins, semi-numismatic coins, and precious metals for your investment portfolio. You must understand, however, that the decision to purchase rare coins, semi-numismatic coins, and precious metals, and which products to purchase, is ultimately yours alone.

LIQUIDITY

The ability to buy and sell rare coins, semi-numismatic coins, and precious metals at particular prices is dependent on liquidity. Generally, bullion and bullion coins are more liquid than semi-numismatic coins, and semi-numismatic coins are more liquid than numismatic/rare coins.

VOLATILITY

The rare coin, semi-numismatic coin, and precious metals markets are subject to substantial fluctuations including significant and rapid increases and decreases in value from time to time. Investors must be able to assume the risk of such price fluctuations.

ECONOMIC FORCES

The success of an investment in rare coins, semi-numismatic coins, and precious metals is dependent, at least in part, upon extrinsic economic forces including supply, demand, international monetary conditions and inflation or the expectation of inflation. The impact of these forces on the value of your holdings cannot be predicted with any certainty. No assurance can be given that an investor will be able to sell his or her rare coins, semi-numismatic coins, or precious metals at a price greater than or equal to their acquisition cost. Rare coins, semi-numismatic coins, and precious metals are not suitable investments for investors seeking current income.

AUTHENTICITY & GRADING RISKS

Forgery and counterfeiting are risks associated with the purchase of rare coins and semi-numismatic coins. To minimize these risks, it is recommended that investors only buy coins certified by one of the leading independent coin grading services. With the exception of certain uncertified circulated coins, each coin sold by CTGroup has been graded by either the Professional Coin Grading Service ("PCGS") or by Numismatic Guaranty Corporation ("NGC"). Both of these coin grading services are recognized throughout the coin industry for their expertise, and each guarantees that the coins they certify are authentic.

The value of a rare coin or semi-numismatic coin is largely based upon the condition or "grade" of that coin, which is a measure of its level of preservation. Grading is a subjective process and grading can and does vary from rare coin firm to rare coin firm, from grading service to grading service, and from expert to expert. There is risk in acquiring coins whose grades have not been independently certified by one of the leading independent coin grading services, such as PCGS or NGC. The possibility also exists that a coin could be incorrectly graded by one of the independent grading services, and it is possible for such services to assign a different grade to the same coin upon resubmission. The guarantees provided by such services provide protection against authenticity risks and incorrect grading. CTGroup guarantees that the rare coins and other items it sells are genuine. CTGroup expressly disclaims any warranties with respect to coins or other items, express or implied, including the implied warranties of merchantability and fitness for a particular purpose.

DIVERSIFICATION

CTGroup adheres to an investment philosophy based on diversification as the key to a sound financial plan. While we recommend that investors devote between 5% and 20% of their overall investment portfolio to tangible assets, investors should consult their own advisors or counsel before making any investment decisions, including asset allocation, strategy and investment levels.

HOLDING PERIOD

Rare coins, semi-numismatic coins and precious metals should generally be considered long-term investments. CTGroup believes these tangible assets should be held for at least 3-5 years and preferably 5-10 years. The exact length of the holding period depends upon several factors, including but not limited to the product mix selected, the goals and objectives of the investor, the individual’s risk tolerance, as well as market conditions.

THE NATURE OF THE RARE AND SEMI-NUMISMATIC COIN MARKET

The rare coin and semi-numismatic coin markets are not subject to some of the forms of governmental regulation applicable to other forms of investment. Conversely, there can be no assurance that, in the future, regulations which materially affect the coin market will not be imposed. At present, rare or semi-numismatic coin ownership offers certain privacy advantages and there are no material restrictions on the ownership of rare or semi-numismatic coins. However, there is no guarantee that, in the future, these benefits will not be restricted or totally removed by government regulation. There is no guarantee that the existing electronic coin exchange, which has brought certain benefits to the rare and semi-numismatic coin market, may not limit or suspend its operations, which could be disruptive to the rare coin market or the semi-numismatic coin market.

MISCELLANEOUS

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 CTGroup Account Executive, 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 document or the Customer Account Agreement, you should contact CTGroup at 1-866-991-2646. Please do not proceed with any transaction until your questions or concerns have been fully answered.

Facts and Disclosures for Investors and Collectors is updated periodically. Keep up to date by either requesting a copy or by viewing www.ctgroup.com/factsanddisclosures.