Numismatic coins, such as pre-1933 $20 Gold coins (Double Eagles) are highly sought after by astute collectors and investors for the beauty, historical value and investment potential. Double Eagles weigh just under an ounce and are available in two varieties, the Liberty Head minted from 1850-1907 and the Saint Gaudens type, minted 1907 to1933. U.S. Double Eagles offer the best of bullion and numismatics (rare coin value) in one investment. They contain the intrinsic security of bullion and can also offer extraordinary profit potential regardless of the price of gold. The precious metal value of these coins is only a small factor in determining value that is almost solely based on the coins condition, demand and rarity.

Many investors appreciate the private nature when making a purchase of U.S. $20 gold coins. U.S. $20s are one of the few remaining investments that can be accumulated privately. Because coins are highly liquid and transportable, coins are attractive to investors who do not want the rest of the world knowing their business. Also, under current federal law, gold bullion coins may be confiscated by the federal government in times of national crisis. As collectibles, $20 Double Eagles (rare coins/collectibles) do not fall within the provisions permitting confiscation.

We are currently recommending that our clients purchase the American Gold Eagle and the China Panda bullion coin. The Eagle is the best selling bullion coin in North America and the perfect "insurance" against the continuing decline in the dollar and the almost certain increase in inflation during the second half of 2004. We also recommend the 1-ounce China Panda coin, as with its yearly design changes, it is the only bullion coin that has a mass collector appeal, and is the most popular gold bullion coin in the booming countries of Asia. For overall profit potential we recommend a combination of $20 Liberty Head and St. Gaudens type Double Eagles grading a minimum of uncirculated Mint State-62 and independently graded by one of the two leading independent grading firms, Professional Coin Grading Service (PCGS) and Numismatic Guaranty Corporation ( NGC).

We urge investors to maintain between 10 percent to 20 percent of their portfolio in hard assets such gold and rare coins as a hedge against future economic uncertainty and possible political upheaval. We look forward to talking with investors so that we can build a portfolio of gold bullion coins and U.S. numismatic gold coins to match their investment goals, investing time frame and specific needs.

For more information, contact Mr. Ken Smaltz, senior numismatist, Eastern Numismatics, Inc. at (800) 835-0008, Ext. 241.

- David Herman

Senior Economist

Eastern Numismatics, Inc.

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