Learn How to Avoid Bad Coin Practices

There are many coin scams out there that you should be aware of. It's ridiculous what people are willing to do to make a buck. I consider some of these sales tactics to be nothing short of stealing. I'd like to name some of the most successful scams so that you can recognize and avoid them when you see them. These may or may not have happened to you before. I just hope that it never does. The main purpose of this guide is to expose some of these elaborate scams so that they never happen to anybody at all.

The most obvious scam is upselling coins. You always need to check the market values of your coins before you buy. You may be purchasing overpriced merchandise and may not even know it. It's not uncommon for a coin company to "try" to sell a $300 dollar coin for $800 to $1,500 dollars. It happens all the time. I see it all the time on those home shopping networks. So always check your market values before making a purchase.

One of the most common scams is selling overgraded coins. What a lot of coin companies do is set up a mail order operation to sell coins. Then they sell coins with a 7 day or 10 day satisfaction guarantee. If you don't like the coins, just return them before the 7 or 10 day guarantee is up. The collectors/buyers who can't grade the coins are the ones that get ripped off. The buyers who aren't satisfied have to pay to ship the coins back. The refund is also issued with less shipping. So either way, the buyers never win. Your best bet is to buy graded coins instead of raw coins. And always buy from a reputable dealer. It's always best to go to a physical store. I understand that supplies are sometimes limited. But when in doubt, always buy your coins slabbed to avoid any problems.

The next coin scam is a bit subtle but extremely effective. It's used to squeeze a couple more dollars out of the buyer. This scam is used a lot with new gold coins so the precious metal buyer needs to listen up to this scam really carefully. The gold coin supplier tries to sell you a Gold Eagle with a guarantee that the coin will grade an MS65 or better. The regular price is $130, but the one with the guarantee is $175. What does this do for the buyer? Nothing! All of these coins are minted with today's technology. So these coins will grade at least an MS67 or higher. So the ones that grade an MS65 will not be worth much more then the ones that grade an MS63 or MS64. Also, you will never find an MS70 because they have all been cherry picked. So what did you really buy? A low grade coin with a guarantee of high quality. Or simply, a low grade coin for a high price.

The last scam is the easiest to avoid. Don't get suckered into this one. A seller tries to sell a counterfeit coin and/or doctored coin. The coin is always ungraded. So the scammer usually walks into a coin show hoping to trade his coin for another coin. The problem is, he is willing to trade his key date at a huge loss. Chances are, the coin is an altered coin or a counterfeit coin. Why would anybody sell a key date at a huge loss? When they cannot sell it to the dealers, they try selling it to the buyers attending the coin show. You should never buy a raw coin from a person you don't know. I see it all the time and it's quite obvious. You can easily avoid all this by coins graded by PCGS, NGC, or Anacs.

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