The Change of buyers How the recent years effected the coin market Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Participants in the Market Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

There are classically speaking 4 different types of buyers with usually very different behaviour: -Institutional Buyers -Bullion Investors -Impulsive Buyers -Collectors Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Institutional Buyers This Group change the way Kitco or LBMA changes and the only thing which matters is price. Therefor this group should be listed but is of no relevance at all Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Bullion Investors The difference between the Institutional Buyers and the Bullion investors is mainly that the later buy from the others. Besides price there is also a tendency to choose more popular issues over the mere base metal value Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Impulsive Buyers Even if this group is the one which usually pays the most for any sort of modern commemorative gift coin I would not put much focus on it as for a business purpose this is an unreliable source of income and trends come and go very quickly. Generally speaking it is always good to have a product which appeals to a wider spectrum of people than one for a narrow niece market. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Collectors Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Statistics As the leading company in terms of authentication and certification of coins PCGS have access to a huge database. The following statistic reflects the growing demand in Europe for out certification and authentication service since the opening in Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Statistics Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Statistics As shown on the last slide the ratio of vintage to modern changes and modern submissions are slowly taking over. At the present time about 60% of the submissions we receive are from dealers and about 40% are from collectors either direct or through dealers. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: German Market -The general acceptance is growing -The people started to value quality -Price and quality started a ‚Relationship‘ -Collectors started to choose specifically what they look for Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: German Market Besides the facts from the last page there is also a change of mind in terms of bullion due to more problems of globalization… Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: German Market Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: German Market Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: German Market Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: German Market In unclear situations collectors tend to choose the safe side of the river. This has become more and more important as the quality of replicas is steadily growing. Generally speaking the German market, as an example, is very conservative and does not like changes at all so every ‚innovation‘ is not always considered of benefit. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: Pandas A popular example are Panda gold and silver coins which had their peak in 2010 / 2011 but even with a slightly lesser demand the Panda coins are one of the most popular and collectable coins on the modern commemorative market. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: Pandas Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Example: Pandas Some rare dated coins from popular markets can reach a high premium even if ungraded. The problem is that the collector / investor is even more cautious if it comes to a higher price and rely on third party grading services in terms of guarantee of authenticity and conservation. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Change of Behavior Modern collectors differ a lot from classical collectors in terms of buying behaviour. Most tend to choose out of the following reasons: -Collectability -Resell value -Popularity -Condition -ROI Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Collectability Not every coin is collectable and not every country and issue is universally popular. There are a lot of local flavoured issues which are bound to a specific region and not worth much in others. Example: Plata Pura Mexico 2000 Proof With a mintage of about 800 pieces this coin is expensive and popular in Mexico but can be found very cheap in Europe. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Collectability

Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT Collectability Another nice examples are the 2009 Ultra High Relief Gold Dollar or certified US Gold Bullion.

Collectability Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Collectability Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Collectability Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Resell Value Top sum it up: Popular issues from generally popular countries like UK, USA, China or Europe generally sell very well on the secondary market. Other countries sometime perform well too but sometimes they don’t. This depends on the general flavour of the coins and the current trends among the collectors. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Popularity Not every country’s emissions are popular all over the world. There are a lot of nieche markets and therefor the choosing of the right product is sometimes tricky. Never the less a certification of a coin opens potentially a new market if well placed and can acquire new collectors and investors for the whole series. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Condition The modern collector’s choice depends besides the usual factors more and more on condition. Collectors of modern coins are much more strict in terms of condition than those of vintage coins as the demands on a modern issue are much higher and no scratch, ding or whatsoever is tolerated. Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

ROI As already stated on the last slides the modern collector demands only the highest quality and is willing to pay a premium if the goods are well presented and accepted by the secondary market. The following are two examples of such coins Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

1 Oz Lunar Dragon 2012: 260$ Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

50$ Liberty 2011 MS70: 1700$ Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT

Questions & Answers Paris Branch of PCGS a division of Collectors Universe Inc. NASDAQ: CLCT