What Not to do When Collecting/Investing in Rare Coins, Part 2

Over the last 14 years of buying, selling, and trading coins, I’ve seen and heard just about every scam, fraud, misrepresentation, and deceptive sales tactic that has been used against consumers. In almost every case, these unscrupulous acts have been committed by fly-by-night coin dealers or individuals that were not associated with a coin company. When I say “almost every case,” we’re talking about 99.9% of cases, maybe more. Nowadays, a lot of that scamming is done on E-bay. The sad part is that most people buy unknowingly and never know that they have been ripped off. Luckily, there is a solution that can help collectors and investors avoid most of those problems…

Always work with a reputable coin dealer. No exceptions.

Just because a friend referred you to a private collector or you saw an ad on Facebook does not mean you are working with someone that you should trust with your hard-earned money. That is, unless money doesn’t mean anything to you. In that case, stop reading this article, go to your grotesquely large yacht and start drinking margaritas. Also, please invite me. And maybe John Damiano as well. But definitely me. Ok, need to back on the trail. For those that money is important to, when you are buying coins make sure the following is true of the person or company you work with:

• High Profile Presence Online and at Major Coin Shows
• Physical Location the Business Operates from, not a P.O. Box
• Membership with Important Rare Coin and Bullion Trade Organizations, such as the ANA, PNG (especially this one), PCGS, NGC, ICTA, National Silver Dollar Round Table
• Membership in Consumer Ratings Companies, such as Better Business Bureau, Trust Pilot, or others that have a wide audience
• Professional References from other High Profile Rare Coin Dealers

If any of the preceding qualifications is missing, kindly say, “thanks but no thanks” to whichever person or company is trying to garner your rare coin or precious metals business.

Another major mistake that Rare Coin and Bullion buyers make is not researching their purchase ahead of time. Would you buy a stock without looking at a chart of its price history, P/E ratio, Debt/Income ratio, market cap, and any relevant news associated with the company? Would you buy a property without looking a price comparisons of what similar homes have sold for or without getting an inspection? Ok, so we’re in agreement, researching investments ahead of time is prudent.

In order to succeed when buying coins, be sure to look at all relevant data points.

Examples of the best ways to reach coins include, but are not limited to:

• Looking at PCGS/NGC Online Price Guide Listings
• Examining the Price Charts on the Above Websites
• Looking at Recent Auction Results for Coins in Exact or Similar Grades
• Doing an Online Search for Dealer and Private Collector Listings of Similar Coins

As the old saying goes, “knowledge is power.” When it comes to Rare Coins and Bullion, the more knowledge one acquires, the more likely his or her odds of success. So please, I am begging you, work with a reputable coin dealer and research every acquisition that you make. It’s SO EASY to get caught up in the excitement of the moment and buy without researching or go on a buying binge without carefully examining each purchase. Learn about what you are doing in coins and the reward will be well worth the time invested. That’s it for this week.

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Until next time,

Ryan Lassley

Creator and Host

The Rare Coin Show