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Superior Precious Metals and its parent com-pany Superior Galleries trace their history to1930 and have been faithfully serving clients forover 75 years in the rare coin and precious met-als markets. As one of the largest and most highlyregarded companies in our field we specialize inmatching both sophisticated numismatists andbrand new investors with the high quality rarecoins and precious metals that meet their portfo-lio’s needs.

In 2007, Superior Galleries was acquired byDGSE Companies, Inc. (AMEX: DGC). Thisevent marks the continuing expansion of serv-ices of the DGSE family of companies. Superior’sacquisition by DGSE demonstrates a long-termcommitment to the rare coin industry, believingthat numismatics should be a key component in

the diversified portfolios of our high net worthclients. Both Superior’s and DGSE’s continued in-volvement with numismatics and precious met-als is strong evidence of the stability and valuerepresented by timely, strategic investments inrare coins.

Since our founding, Superior has grown into oneof America’s premier rare coin and preciousmetal dealers by never wavering in our attentionto the interests of our clients. Combining aunique blend of industry expertise, longevity,and financial strength, we are able to offer a com-plete range of services to any investor. The nexttime you are ready to buy, sell, or trade preciousmetals or rare coins, Superior Precious Metalswill be happy to put over 75 years worth of ex-perience to work for you.

WELCOME TO SUPERIOR PRECIOUS METALS, INC.

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AN INTRODUCTION TO RARE COINS

Coin collecting in the United States became popularalmost as soon as domestically produced coins werefirst made. Although many of the early collectorswere Englishmen, prominent American collectors ofU.S. coins like Lorin Parmelee, Virgil Brand, LouisEliasberg, Sr., and T. Harrison Garrett subsequentlybecame the cornerstones of the market.

Today, rare coins are considered sound investmentsand have been featured numerous times in the WallStreet Journal, Barron’s, Money Magazine, and numer-ous other financial publications, as well as CNBC.Investment professionals from Harry Browne to inde-pendent financial planners have recommended thatsome portion of one’s overall wealth be placed in aposition of rare coins and precious metals.

Informed investors have long considered coins notonly as a means for capital appreciation, but also asa way to secure long-term investment goals. By es-tablishing a confidential, low-key way of protectinginvestment assets, the fluctuations in the dollar-re-lated portions of ones holdings may be balanced.Rare coins provide a unique opportunity for per-sonal enjoyment as one accumulates an asset withboth beauty and intrinsic value. This asset class in-herently stays in demand, hence providing inherentsafety for even the novice investor. As knowledge isgained in the numismatic (rare coin) field, many in-vestors will focus on certain pieces that may be un-dervalued; pieces that can enjoy a higher profitpotential when sold.

Investing in rare coins should always be considereda long-term investment. Additionally, the potentialinvestor should consider this asset class as a way to

accomplish portfolio diversification. Often, inexpe-rienced investors equate numismatic investing withsimilar investments in stocks and bonds. However,a short-term perspective will likely lead to disap-pointment. Rare coin investing should be part of acarefully considered approach to creating a balancedportfolio, with the coin component providing astrong counter cyclical influence on U.S. dollar de-nominated elements. This approach “spreads out”one’s portfolio and reduces risk. Using this approacha purchaser of rare coins and bullion has a frame-work for protection against the weakening trends inthe currency and securities markets.

Superior Precious Metals and related companies aspart of DGSE Companies Inc (AMEX: DGC), havebeen involved in all financial aspects of the rarecoins and currency industry for over 75 years in-cluding research, trading, buying and selling. Wefeel that the present environment of uncertainty inthe global economic climate, as well as changes inthe U.S. financial markets, represents a unique op-portunity for an opportunistic investor to create arare coin investment portfolio.

We have built thousands of successful relationshipsover our many years in the trade. A strong followingwith collectors, dealers, and investors which includesome of America’s most wealthy families has enabledus to maintain an impeccable reputation. This givesour clients an advantage in these markets when ei-ther purchasing or selling. Our abilities and honestyare well known on several continents through per-sonal relationships, affiliations, and expert represen-tation. We proudly offer the same to you!

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INTRODUCTION

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Webster's defines "rare" as something not fre-quently found; scarce; uncommon or unusual.The word "rare" as it is used in the numismaticindustry has a more vague meaning. Because acoin's rarity is relative, many coins are referredto as "rare coins" even though there may be500,000 of that specific coin in existence. For ex-ample, 484,000 specimens of the famous 1909-S VDB Lincoln cent were minted, and more than4,000 pieces have been certified by the leadingthird-party coin grading services, yet that coin isdeemed to be eminently rare and desirable.

A coin can be "rare" because of a relatively lowmintage, a low survival rate, and/or because no-body wants to sell the specimens they have. De-mand also plays a role in a coin's rarity. Whetherthere are six or sixty examples of a certain coin,if it is sought after by more collectors than thenumber of coins known to exist can satisfy, thenit is "rare" relative to the demand.

HOW DO I INVEST IN RARE COINS8 Important Questions and Answers about Investing in Rare Coins

1 WHAT IS A RARE COIN?

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It is the condition of a coin that determines its grade(i.e. VF- Very Fine, AU- Almost Uncirculated, MS-Mint State). The difference of just one grade can, attimes, mean many thousands of dollars to a coin’svalue, so YES it is very important. Although there is

no specific grade to exclude, the general rule ofthumb is that a higher grade coin from a certain se-ries will usually be in greater demand than a lowergrade coin of the same series and therefore havehigher appreciation performance.

RARE COINS

2 IS THE CONDITION OF THE COIN IMPORTANT?

Today, several third-party services exist which canobjectively determine the authenticity and conditionof coins. The two largest and most preferred of theseare: Professional Coin Grading Service (PCGS) andNumismatic Guarantee Corporation (NGC). Thesecompanies encapsulate the coins to preserve their

condition and assign a unique serial number to eachcoin, so that its identity can be verified. Both PCGSand NGC issue a written guarantee of their conclu-sions on the authenticity and condition of the coin.Their opinions and guarantees are widely respectedand accepted in the rare coin industry.

3 HOW CAN I BE ASSURED THE COINS ARE GENUINE?

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5 HOW LIQUID ARE

RARE COINS?Rare coins are by far the most liquid of all col-lectibles (i.e. art, stamps etc.). While there arecurrently two teletype/computer trading ex-changes in existence for coins, these trading sys-tems are not the heart of the industry. The greatdemand that exists in the numismatic commu-nity for attractive and truly rare coins are usually

purchased on a sight-seen basis among the mostknowledgeable dealers and collectors privately,at public auction or at the many rare coin showsand expositions worldwide. If you are a moti-vated seller most coins can be sold within hoursto a few days.

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Quality rare coins can be purchased for as littleas $300 or as much as $7,000,000. However,the general price range for a large percentage ofhigh quality rare coins is between $1,000 and$25,000.

4 HOW MUCH DO RARE COINS COST?

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Under current tax law, rare coin dealers are not re-quired to report purchases or sales to the IRS regard-less of the transaction value. This allows clients aunique privacy option that might not be available in

other investment opportunities. Remember, each in-dividual seller is obligated to report gains or losseson his/her own tax return.

No. Dealers are as individualized as coin collectors.While the majority of dealers are ethical and hon-est, each has a different personality and style whichmay or may not blend well with your own. Somemay be struggling to make a sales quota to coverdaily expenses. Some are so large it is unlikely youwill receive personalized service with a professionalnumismatic advisor.

You should find someone who you feel has your bestlong-term interests in mind. You might ask questions

like, “How long have you been in the business?” “Doyou sell coins from your own inventory?” “Why doyou think I should buy that particular coin?”

Because we are interested in earning your businessover the long-term, our focus is different than manyother dealers and brokers. Superior has over 75 yearsin the rare coin business and our prominence in auc-tion venues, wholesale trade, and brokerage servicesspeaks volumes for us and will for you as well.

ARE ALL COIN DEALERS ALIKE?

DOES THE PURCHASE OR SALE OF RARE COINSHAVE TO BE REPORTED TO THE IRS?

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Auctions often provide access to major rarities thatare otherwise unavailable. During the auctionprocess you may also gain insight of the desirabilityand demand of a certain coin and the “high end”market in general. We conduct seven major Elite nu-mismatic auctions each year at our sister companySuperior Galleries.

Coin shows and bourses provide an open forum forobtaining many treasures as well. Our professionalnumismatic staff attends most major domestic andinternational shows and coin conventions, and willpersonally assist you in building your collection.

Superior Precious Metals offers individual con-sultation for our clients everyday. As one of the toprare coin and precious metal brokers in the countrywe are able to aggressively negotiate favorable priceson behalf of the investors that entrust us with theirbusiness. Building a rare coin and precious metalportfolio does not have to be difficult when we areonly a phone call away. Call 1-888-741-4549 tospeak with one of our representatives.

6 WHAT IS THE BEST SOURCE FOR BUYING

RARE COINS?

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IS AN INVESTMENT IN RARE COINSAND PRECIOUS METALS RIGHT FOR ME?

For a long time the rare coin market was driven bycollectors, not investors. Many of these collectorsbecame interested as young people through organ-izing their pocket change by the dates and mint-marks on a coin board. A small percentage of theseyoungsters developed a long lasting fascination withcoins and began collecting rarities that did not existin their pocket change and had to be purchasedfrom dealers or other collectors.

The modern rare coin market is significantly differ-ent from what it was even 50 years ago. The intro-duction of the independent third party gradingservices has added a significant layer of security forthe collector and investor alike. By ensuring thateveryone can equally judge the state and conditionof a coin, these independent grading services haveleveled the playing field and allow even the mostnovice numismatist to understand the value and in-vestment quality of rare coins.

We have not experienced high inflation for almost20 years and, for some, it may be a distant memory.However, most experts agree that the United Statesis showing all the signs of once again heading to-wards a higher inflation rate. The Consumer PriceIndex is consistently rising, the federal deficit is ex-ploding, the long-term decline in the value of thedollar is persistent, oil prices continue to rise, themoney supply is increasing and unemployment is

creeping upward; all signs that inflation will con-tinue on a multi-year upward trend.

Inflation can have a devastating effect on the major-ity of the other investment options available today.Rare coins and bullion stand as one of the few exam-ples of investments that actually perform betterwhen inflation is on the rise.

1 RARE COINS ARE A HEDGE AGAINST INFLATION

7 Major Advantages of Rare Coin Investment

Rare coins enjoy very favorable treatment from a taxstandpoint. Investments in rare coins can grow astax deferred assets. By taking possession of yourcoins at the time of purchase and retaining them forat least six months, you will be taxed at the lower

capital gains rate. Additionally, under certain cir-cumstances, rare coins can qualify under section1031 as a “like-kind” exchange allowing investorseven greater flexibility for portfolio growth.

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PrivacyUnlike the vast majority of other major investments,rare coins are not subject to federal disclosure rules.As long as the coin you purchase carries at least a15% premium over its metal content, there are ab-solutely no reporting requirements for either a pur-

chase or a liquidation of your investment. This al-lows an investor to construct a rare coin portfolio inalmost complete privacy. Few other investment op-tions can match this characteristic.

3 PRIVACY

Many investors believe that their portfolio contains“Portable Assets,” but the definition intended toapply here is “assets with significant, concentratedwealth that are moveable across state or internationalboarders without disclosure, registration orexport/import duty.” Most significant portfolios areoften totally dependent on assets that require somedisclosure or registration for transportation. Never-theless, the most prudent investors always seem tohave assets that are portable so that wherever the in-

dividual desires to travel, assets with significant andconcentrated wealth are available for use. To move rare coins is as simple as transferring yourwallet. A single rare coin, packaged in a third partyplastic holder is about the size of a credit card, aboutas thick as your pen, and typically weighs less thantwo ounces. A single rare coin can have a concen-trated wealth in denominations that you select:thousands of dollars, tens of thousands, hundredsof thousands and even over a million dollars.

4 PORTABILITY

Responsible wealth planning and protection plansoften include significant preparation for the transferof wealth from generation to generation. Assets thatare bearer instruments, are concentrated in value, aresmall and light weight, and are easily shipped glob-ally make perfect assets to facilitate wealth transfer.

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With the advent of the independent grading servicessuch as NGC and PCGS, rare coins have become oneof the most liquid of all collectibles. Since 1963, therare coin industry has benefited from a publishedweekly dealer to dealer price sheet (The Coin DealerNewsletter) for all important U.S. coins. No othercollectible market has a pricing structure publishedas frequently or as accurately as rare coins. Mostcoins can be sold in a few hours to a few days, ifneeded. In addition there are major auctions andcoin shows every month that allow even more flexi-bility for liquidating your investment when the ap-propriate time comes.

For the most part, rare coins are as liquid as a singletelephone call to Superior Precious Metals, Inc.Superior is always interested in buying your rarecoins and has the capital in order to immediatelypurchase your collection. As a subsidiary of SuperiorGalleries (one of America’s largest and most respectednumismatic auction companies), Superior PreciousMetals can also facilitate consignments for one ofour seven yearly rare coin and currency auctions.

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Liquidity

Superior Precious

Even with all the other advantages of investing in rarecoins, one must remember that appreciation is theultimate goal of any portfolio component. Your in-vestment strategy must allow you to withstand manydifferent economic environments and hard assetssuch as rare coins and bullion are an essential partof any well rounded portfolio. Maintaining appreci-ation throughout your entire portfolio is the plan-ning goal, and achieving this goal requires assets inthe portfolio with different characteristics. This al-lows appreciation in certain areas when others maybe performing at a lower level.

Rare coins and bullion have consistently out per-formed almost every major equity index over the last40 years, including the S&P 500, the DJIA and theNASDAQ 100. Even more compelling is the fact thathard assets have traditionally faired even better dur-ing periods when inflation is on the rise, the dollar isweakening, real estate prices are dropping and othercommodity prices such as oil are rising. The graphson the facing page clearly demonstrate how hard as-sets, such as rare coins and bullion, serve as an effec-tive diversification tool and have significantlyoutperformed the equity markets for almost 40 years.

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INVESTMENT

Call Superior Precious Metals today at 1-888-741-4549to learn more about how rare coins can become a Superioraddition to your investment portfolio.

*as of 2/1/08