THE TEXAN: A GOLDEN OPPORTUNITY

If Tom Taylor wins his triad of wishes, Dallas will soon become the mint for the first Texas gold piece. The
piece will compete head-to-head with the popular South African Krugerrand, and gold buffs will be able to buy the
1-ounce coins at their local banks.

Surprisingly, the only major hang-up hindering Taylor’s National Smelting & Refining Corp. (NSRC) from introducing the
coins in quantity this month is the bank marketing angle. Taylor already has federal production approvals, bonding, a
great big “errors or omissions” insurance policy, a prototype gold piece and considerable notoriety. Last June, his
company sponsored a national contest to design and name the piece – now called the “Texan” – which depicts the Alamo
on one side and a spread-winged eagle on the other. Contest judges were Dallas star Larry Hagman, former
Virginian star James Drury, singer John Gary, portrait artist Dmitri Vail and
oilman/Titanic-hunter Jack Grimm.

Despite the big-name ballyhoo, NSRC President Taylor has received no more media or bank-marketing attention than is
usually accorded other gold and silver smelters that cast privately minted coins, medallions, figurines and charms –
which is zilch. And the number of Texas banks willing to inventory and/or broker even government-minted gold coins –
such as the Krugerrand, the Canadian maple leaf and the Mexican 50-peso piece – can be count-ed on the fingers of one
hand.

But Taylor continues his search for a bank that will market his coin – perhaps on consignment. At this writing, he’s
got almost a half dozen ready to accept the Texan, and prepared to sell the coin as soon as Taylor can garner enough
ounces to make a sustainable mint run.

Taylor’s reason for wanting banks involved in the marketing is clear: “We’re looking at an item of certified purity. .
.that is bonded and insured. When you can get that through your bank instead of pawn shops, you’ll get a greater
participation of the public in gold ownership for reasons of comfort, confidence and credibility.”

Taylor intends to market the 1-ounce coin (also available in quarter-ounce and half-ounce sizes) for about 37 percent
above the “spot” or prevailing market price of gold. That’s a little above the 2 to 10 percent premium that coins
usually carry above raw gold and the additional 2 to 5 percent premium quoted by other Dallas gold dealers for
Krugerrands. However, most of the markup, says an NSRC source, can be attributed to the coin’s .999 purity, above that
of a Krugerrand or a Canadian Maple Leaf.

And this coin – although not exactly a collectible – has something of a local flair. Its local minting means that if
gold buffs wish to buy American-er, Texan – rather than South African coins, their investment could be as good as . .
.well. . .gold.