(Santa Ana, California) - The Federal Reserve Board's reduction in the prime lending rate, September 16, now is saving collectors and dealers money on loans based on certified collectibles - coins, stamps, paper money, sports memorabilia and gem stones - as collateral.
"The Fed rate cut has resulted in significant savings on loans because the
loan rate is based on the floating prime rate. A collector or dealer obtaining
a $50,000 loan for one year now will save $125, and the savings are even greater
for higher loan amounts of that duration," explained Mike Lewis, President
of Collectors Finance Corporation (CFC) of Santa Ana, California, a division of
Collectors Universe, Inc. (NASDAQ: CLCT).
"One of our collectors who borrowed from us in order to upgrade his collection
of Saint-Gaudens Double Eagles gold coins is saving $2,500 this year as a result
of the drop in the prime rate," he said.
"The loans can quickly provide additional funds for paying off auction bills
or making additional acquisitions for inventory or a collection. We've had
a number of collectors and dealers who have taken advantage of the lower interest
rates since the Fed lowered the prime rate by a half-percent."
Only collectibles certified by a division of Collectors Universe can qualify for
a loan. The subsidiaries are Professional Coin Grading Service (coins and bullion);
PCGS Currency (bank notes); Professional Sports Authenticator (sports and trading
cards); PSA/DNA Authentication Services (sports memorabilia, photographs and autographs);
Professional Stamp Experts (stamps); Gem Certification and Assurance Lab (diamonds);
Gemological Laboratories (colored gem stones).
Loan amounts range from 35 up to 80 percent of the market value of the certified
collateral based on the type of collateral, and loans can be made for up to one
For additional information, contact Mike Lewis at Collectors Finance Corporation
at (949) 469-2646 extension 375. E-mail: [email protected].