a) What’s up with these supposedly rare coins worth millions (artistic license) and you can order for 3 easy payments of $19.95? Or, something like that…
This sounds like snake oil to me. What’s the deal?
b) Why is it legal to sell US currency and stamps, in the first place? You’d think this would ruffle Uncle Sam’s feathers, wouldn’t you? Wouldn’t they want a piece of the action…?
Why do think that selling stamps and coins would be illegal at all? That is what coin and stamp merchants as well as private collectors do all the time. They are just doing it on a bigger scale.
The obvious answer to the value is that they aren’t all that valuable and they aren’t ever going to be considered rare because there are enough of them to sell in mass quantities on TV.
What you’re seeing on TV aren’t the actual rare coins being offered for sale. What they’re selling are modern reproductions of rare coins, usually with a thin coating of gold (unlike the originals, which were solid gold). That’s why they quietly refer to them as “proofs.”
grrrrr!
Don’t get me started.
Snake oil it is.
If you see it advertised on tv, you just overpaid.
If you bought it from an ad in the newspaper, you probably overpaid.
We sell over $1 million dollars worth of coins per year to a “home shopping” type of outfit.
You just can’t even imagine the markup.
As for legality, it’s legal to sell anything for any price, just about. Unless it’s illegal.
Or, immoral, in some places. :rolleyes:
As someone who has collected coins, I agree with samclem’s comments, and have this to ad:
If at all possible, never buy coins from outside the trade, and always have the Red Book at hand, as it make some of the more extreme mark-ups patently obvious.
The website of the National Collector’s Mint, which is usually the one peddling this stuff on late night TV, contains the following disclaimer in small print at the bottom of each page:
As I said, what you’re seeing is not, for example, a real 1933 St. Gauden’s $20 Double Eagle - it’s a copy of it.
You’re being too narrow in your examples.
Most “home shopping” type shows are actually offering real coins. Just marked up about twice what any self-respecting coin shop would sell them for.
Yes, some of the offerings are copies of extremely rare coins. But usually just ovepriced real coins.
From Jinx’s reference to “supposedly rare coins worth millions,” I assumed that he wasn’t talking about the stuff being peddled on home shopping networks. It’s the NC Mint (and others like them) who are selling what appear to be very, very rare coins for $19.95.
You’re correct about the home shopping network stuff, of course. Even when the coins are genuine, they’re wildly overpriced. Your local friendly coin dealer is a much safer bet.
Sam, while we’re on the subject, would you please say a few words about grading of expensive coins, and who to rely on? I suspect you may be loath to endorse or criticize anyone in public, but I’m aware that there are two grading services whose valuations you can literally take to the bank, and several that, if not exactly fly-by-night, are only slightly better than having Aunt Tillie evaluate the coins for you. I ran into this in connection with my work for my ex-boss (who was buying CC dollars and gold as a hedge while the stock market was playing “Whee! Watch me ride the roller coaster, daddy!”), and I personally think the information should be made more public – so I’m asking you as an expert to name those two grading services and explain why to trust them and to avoid the others.
Poly.
The number one best grading service is PCGS. When a person calls me and wants me to quote them a price over the phone, I will if the coin has been graded by PCGS. They sometimes are too conservative, but that’s good for the customer.
NGC is the next best, and they are consistent. I think they grade about 1/4 of a grade below PCGS. That’s just my opinion. But, if a coin is in their holder, then you will get pretty much what a PCGS coin will bring.
ANACS is mercurial. Anecdote: I owned an 1859 proof quarter. Totally original. Rare beastie. I sold it as an MS65 to a customer. $2000. He trusted me. He wanted it certified. Sent it to ANACS. Came back MS64. Only worth $1000. He was disappointed, but not mad at me.
Six months later, we sent it to PCGS. Came back MS 66! Now worth $3000. He was happy. I was happy.
But, generally speaking, ANACS coins are graded looser than PCGS.
Personally, if I were investing in coins, I would only buy PCGS. Unless I was a pro or knew how to grade big time.
There are probably 6 or more other services. They range from ludicrous to pretty good.
But, IMHO, if I were a novice/investor, PCGS only.
Just three easy payments of $136,333.33!
A gold penny, no kidding!
I knew there used to be silver ones, but this is the first gold one I’ve seen.
Regarding the OP, I’ve noticed another shameful practice in which the TV ads hawk “silver dollars”, or something similar, and then they turn out to be not only silverplated brass, but also not United States coins at all.
You mean ‘silver-colored’. They were actually made of steel.
Oops, should have looked at the link. I’m speaking of U.S. pennies, of course.
Maybe I’m missing something, but if I manufacture a “reproduction” coin, or any type of currency for that matter, at what point does it become counterfit?
Just a quick diatribe on the word “rare.” If there are enough of these puppies out there to sell on a home shopping show, then (by definition) they aren’t rare.
They got their piece of the action when they initially issued and sold the item. It’s like when a first edition book is published and the publishing company gets their $10 (or whatever). Twenty years later, it may be worth $1,000, but that money goes to the person who paid the $10, not to the publisher. Same with coins.
When it’s not clearly labeled as a copy, or when you attempt to pass it off as genuine.
It’s also a poor idea to buy coins from those gift magazines that have sets in display cases. They are WAY overpriced and you will never see the coin condition stated in the ad, so you don’t know what the hell you’re going to get. I recently saw an ad for “three rare nickels” for only $4.95. ‘Old’ does not equal ‘rare’, and $4.95 is not a bargain for three ordinary coins.
I remember seeing ads in some 60s and 70s US comics for “old/rare coin grab bags” that contained a mixture of coins (supposedly each bag had a chance of containing rare, expensive coins.) Can you still buy grab bags of old coins, and are they ever not a rip-off?
What about US Mint proof sets? Do they ever increase in value or are they just something nice to have for the kids?