Overview
American Numismatic Exchange (“ANE”), (“ANE,” “we,” “us,” or “our”) provides access to a variety of online services and content through our websites and other digital platforms (collectively, the “Services”). These Services may include, without limitation, market and spot-price information (including data provided by third-party providers), company and historical information about ANE and its subsidiary and affiliated entities, educational materials, news and current events, job postings, and other resources, tools, or features we may make available from time to time. By accessing or using the Services, you agree to comply with these Terms of Service (the “Terms of Service”) and any additional terms or policies referenced within the Services.
IMPORTANT: PLEASE READ THESE TERMS OF SERVICE CAREFULLY, INCLUDING THE MANDATORY ARBITRATION PROVISION IN SECTION 11, WHICH REQUIRES THAT CERTAIN CLAIMS BE RESOLVED BY FINAL AND BINDING ARBITRATION ON AN INDIVIDUAL BASIS, AND NOT ON A CLASS-WIDE OR CONSOLIDATED BASIS, WITH EXCEPTIONS. YOU AGREE TO WAIVE YOUR RIGHTS TO PARTICIPATE IN A JURY TRIAL OR ANY COURT PROCEEDINGS OR IN CLASS ACTIONS OF ANY KIND. IF YOU DO NOT AGREE TO BE SUBJECT TO ARBITRATION, YOU MAY OPT OUT OF THE ARBITRATION PROVISION BY FOLLOWING THE INSTRUCTIONS PROVIDED IN SECTION 11.
THE SERVICES ARE NOT INTENDED FOR USE OR ACCESS BY ANYONE UNDER THE AGE OF 18. IF YOU ARE UNDER THE AGE OF 18, YOU MAY NOT USE OR ACCESS THE SERVICES OR PROVIDE US WITH ANY PERSONAL DATA. YOU MAY NOT USE THE SERVICES AND MAY NOT ACCEPT THESE TERMS OF SERVICE IF (1) YOU ARE NOT OF LEGAL AGE TO FORM A BINDING CONTRACT WITH US, OR (2) YOU ARE A PERSON BARRED FROM RECEIVING THE SERVICES UNDER THE LAWS OF THE JURISDICTION IN WHICH YOU ARE RESIDENT OR FROM WHICH YOU USE THE SERVICES.
Price Considerations
A price difference, or “spread,” exists between our selling price and our buy-back price. Although the spread varies, bullion coins typically have a spread of about 3% to 6%. For example, if our selling price is $300, our buy-back price may be $289, less a 2% commission, such as when a collector/investor non-dealer sells us $1,000 to $15,000 in metals or coins.
As a result, your bullion or coins must increase in value to offset this spread before you can earn a profit by reselling them to us.
We set our prices internally based on our assessment of various factors, and they may not correspond to prices quoted by other organizations or markets. Prices for bullion and coins may change frequently in response to market conditions and other factors.
Risk Considerations
All investments carry risk, and coins and bullion are no exception. The value of a bullion coin, such as a Maple Leaf or American Eagle, depends on economic conditions, the current bullion market price, perceived scarcity, quality, demand, market sentiment, and other factors. Because bullion and coins can decrease as well as increase in value, they may not be suitable for every investor. Before investing, you should understand these assets, maintain adequate cash reserves, and have sufficient disposable income.
Unlimited Risk Considerations
BORROWING OR SHORTING PRECIOUS METALS CAN CREATE UNLIMITED RISK
A. Borrowing or shorting precious metals can involve unlimited risk. These risks are generally greater for silver, platinum, and palladium than for gold because those markets are typically less liquid.
B. Precious metals prices can move sharply within short periods and, under certain circumstances, may double or more almost immediately.
C. POTENTIAL UP-MARKET RISK
For example, assume a party borrows 1,000 ounces of gold from ANE at $300 per ounce and provides 110% collateral in good funds or a letter of credit, totaling $330,000. If gold closes in the United States at $300 per ounce and opens a few hours later in Australia at $500 per ounce, the $200-per-ounce increase would create a $170,000 deficit on the 1,000-ounce short position. Under its customer agreements, ANE could buy in the position at $500 per ounce to protect against further price increases. After liquidating the position at that price, ANE would apply the $330,000 collateral against the $500,000 cost of the gold, leaving the borrower or shorter owing a $170,000 deficit. If the party still physically held the 1,000 ounces of gold, the inventory’s value would have increased from $300,000 to $500,000, offsetting the deficit owed to ANE. However, if the borrower had sold the gold and had not yet bought it back or had re-loaned it to someone unable or unwilling to return it, the borrower could immediately owe the $170,000 deficit.
D. World events may trigger sudden, unpredictable, and severe price swings, which could require positions to be liquidated unless the borrower has adequate protections in place.
E. The best protections against up-market risk include the following:
For borrowers of gold:
i. Always retain possession of the borrowed gold.
ii. If shorting gold, keep short positions within amounts that remain manageable if gold prices rise sharply.
iii. Maintain sufficient funds or metal to meet potential margin requirements.
iv. Deposit additional good funds or precious metals with the lender as a cushion against a rapid increase in gold prices.
v. Anticipate, monitor, and plan for events that could cause the market to rise significantly.
vi. Maintain available credit lines to cover large margin calls.
For lenders of gold: lend metal only to creditworthy customers or require security in like metal or a like-metal-denominated letter of credit, so borrowers can meet margin calls promptly, even if the metal price doubles.
Liquidity
Among the products we typically buy and sell, bullion and bullion coins are generally more liquid than semi-numismatic coins and collectible products. Because ANE may influence the market, the price of a particular coin or collectible may decline if ANE stops recommending it, depending on various factors.
Your Sales To ANE
Although we are not required to do so, we have historically maintained two-way markets, both selling and purchasing the products in which we trade. We may change this policy at any time without notice.
After we physically inspect the products you wish to sell and verify their quantity and quality, you and our traders may negotiate a price, and we may purchase the products from you.
While the products are in transit and awaiting our verification, their value may change significantly, and you bear the entire risk of any price change. You are also responsible for shipping the materials to us and insuring them until we agree to purchase them and provide you with a transaction confirmation number.
For Your Protection and Ours:
Make all checks and wire payments payable to American Numismatic Exchange.
PLEASE DO NOT SEND CASH.
You may ship metals and coins to us using the carrier of your choice. We are not responsible for items lost or damaged in transit. If you want the shipment insured, you must arrange the insurance yourself.
When you receive bullion or coins, inspect the shipment carefully to confirm that you received all products ordered and that they match the description on your invoice. You must report any discrepancy within five (5) calendar days after receiving the shipment and retain all original packing materials.
Promptly notify us in writing of any change to your address or other account information. Include your account number and sign all correspondence. Telephone calls may be monitored or recorded for quality control and policy compliance.
Any change to ANE’s terms and conditions must be in writing and signed or authorized by an ANE officer.
Easing Or Waiver of Rules By ANE
ANE may occasionally ease or waive certain rules or provisions of its “Terms & Conditions” to expedite business. Any such easing or waiver applies only to the specific transaction involved and does not change the “Terms & Conditions” for any other transaction between the parties.
If ANE does not require you to perform any “Terms & Conditions” in one or more instances, that failure will not be considered a waiver of any past, present, or future rights ANE has under those “Terms & Conditions.” Your obligations under them remain in full force and effect.
Waiver of Jury Trial and Arbitration
You and ANE each waive the right to a jury trial for any claim or cause of action arising from, related to, or connected with this Agreement or any other agreement now or later entered into between you and ANE.
You and ANE also waive any right to arbitrate any matter arising under this Agreement or any other agreement now or later entered into between you and ANE, including any right to arbitration under the rules of the Professional Numismatic Guild.
Summary
These are only some of the risks associated with purchasing bullion and coins and conducting related business.
We strongly recommend that you develop a solid understanding of precious metals and coins before making your first purchase. Many investment advisers generally suggest limiting bullion and coin investments to no more than 20% of your investment funds. Protect your future by maintaining a diversified portfolio that aligns with your goals for safety, liquidity, and growth, and remember that all markets can be volatile and experience both gains and losses.