Protection while buying rare coins
If you look in for investing in rare or bullion coins, you should keep into consideration the rarity, its market price, gradation and numismatic desirability. Keep in mind the following points while making a rare purchase.
Use your common sense and do not rush.
Be sure of your dealer’s reputation before purchasing a coin. If that is not possible, there are other firms you could buy from.
Do not fall pray to false promises of dealers who say they will buy back the piece at a higher price or that the marking is guaranteed unless you are sure of the dealer’s financial back up.
Get a second opinion about the gradation and quality of the coin as soon as you get it.
You should indulge in getting your coins checked by an independent source. Often third parties mark non-encapsulated coins, which have liberal standards.
Consult prices from other dealers or firms before you make a purchase. There is no point paying higher for a piece, which is available at cheaper rates in the market.
Ensure your possession over your buy to know about its existence and storage.
Try to avoid giving your credit card details to unknown people over the phone.
Often these people tend to set up well-furnished offices and talk on similar terms as a genuine dealer would. You have to be careful while revealing your information to them.
Fraudulent Grading Claims:
Proper grading of a coin is done on the basis of “overall appearance” and “eye appeal”. Fraudulent dealers often grade up unpopular coins to obtain a higher pricing.
False Certification Claims:
Often certificates issued to collectors are often fraudulent. Sellers may also use old certificates to sell coins.
False Claims about Present Value:
Often dealers or certificates and third parties make false claims about the current market value of the product.
False Claims of Appreciations:
Dealers who are dishonest often make claims about appreciations of certain coins quoting various indices. That are applicable for only rare coins and not the ones that these dealers want to trade.
Help At Hand:
If your dealer is not ready to help you, then you can get help of consumer protection agencies like Federal Trade Commission. Most government agencies, however, cannot provide help against fraudulent dealers but they can give you sound information as to how you should proceed. If the dealer is a member of an agency, then the agency can have a long hand to help you.
Some Favourite Organisations:
The American Numismatic Association:
This is a non-profit organisation of collectors, dealers and other members to provide basic information to novice and beginners in coin collection. If a dealer is a member of ANA, you can complain against him at ANA’s head quarters against him, for the association to take necessary actions.
Professional Numismatic Guild:
PNG is an organisation for dealers and collectors. To acquire membership, a dealer must have sufficient experience to meet the requirement.