Business Profilefor1st National Reserve, Ltd.

Deceptive, I clearly told sales rep. *. *. I was interested in bullion and he tried to recommend high priced collector's coins with a huge markup over spot... think about $3500/ounce vs. $2000 ounce bullion prices. I told him again that I wanted to buy products that on any given day I could sell off and get my money back within a +/-20% purchase price, which is a reasonable fluctuation for a precious metals commodity. So he recommends original 1986 $25 1/2 ounce gold Eagle MS69 rating for $1670/ea. He said that the coins are worth the extra costs due to original coins and desirability, but not overpriced. OK I thought... until I checked with several other shops. Example I called ***** ***** ** *******. I asked them if I bought these same coins, how much? $1028/ea. The guy even told me that these 1/2 oz. coins are spot price plus 9% markup and 5% markup for 1 oz. and if sold back to the dealer, only spot price or maybe a couple percent more than spot price. His response to the $1670 for same coins, OMG!! $1028 Houston and $1670 in Good old Beaumont... Also, 1st National reserve also wanted me to send a check for 120 ounces of silver @ $27.03/ea. totaling $3243.60 but refused to give me a firm order contract for the quoted 120 ounces I wanted to buy. ** insisted I round up the check to $3300 for the 120 ounces for the purchase price quoted in case of increase in silver by the time I delivered my certified check in the next 30 minutes... Even though day the before they gave me an contract order amount the day before and were going to have FedEx pickup the check... Hmm, suddenly different policies for the next morning for the same company. I guess they aren't aware of CME and futures contracts?? But when they were intending to nick an extra $3210 beyond the retail value and prices from me... I guess they weren't really worried about a few dollars of fluctuation costs... it's worth repeating about 1st N.R.... "Caveat Emptor!" On to Houston to pick up gold coins.

Unfortunately, I believe there have been some miscommunications and confusion between 1st National’s representative and Mr. ***** and between Mr. ***** and ***** ***** in Houston regarding the different types of products in question and their pricing. My expertise was recently recognized by being named the American Numismatic Association Coin Dealer of the Year. After listening to recordings of our representative’s calls with Mr. ***** and reviewing his letter, I would like to give a few examples of this confusion. According to Mr. ******* BBB customer review, ***** ***** in Houston said they would sell an 1986 $25 NGC MS69 for $1,028.00 each. There are currently bids for that exact certified coin for $1,225.00 on the Coin Dealer Newsletter exchange and in the monthly Coin Dealer Newsletter. This coin is being offered for sale, dealer to dealer, for $1,325.00. The Numismatic Guaranty Price retail price guide lists their value at $1,680.00. I currently buy current and past year, $25 ½ ounce gold eagles from a U.S. Mint authorized purchaser for 6.1% over spot gold price and are selling them at 7.1% over gold spot on our website, a 1% markup. I think ***** ***** mistakenly quoted Mr. ***** the $1,028.00 price of a common, uncertified $25 gold eagle, not the price for an 1986 $25 NGC certified MS69 coin that they could easily sell to dealer bidders for $1,225.00, $197.00 more than they seem to have quoted him. Also, Mr. ***** was concerned about us not locking the prices for 120 ounces of silver rounds when we would do it for 20 ounces on his previously cancelled order. This could have been better communicated by us, but for new customers, we require payment in hand to lock in larger orders (20 ounces initially vs. the 120 ounces in question) like many other coin and financial businesses. With silver prices being currently volatile, $24.63 on April 21st, $23.33 on April 27th and $22.56 on May 3rd, there is good reason to require newer customer payments to be received to lock in larger orders as we only make 1/4% - 1/2% on many silver products we sell. Instead of addressing more of Mr. ******* concerns in this response, I hope he will accept my invitation to have lunch with me to discuss all things coins. Please call 1st National Reserve’s Customer Service Department at (***) ***-**** to set up a lunch with me. **** ******* Numismatic Consultant, 1st National Reserve ANA Coin Dealer of the Year