Numismatic Nonsense

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There is no question about the wisdom in the old adage, “If it sounds too good to be true, it probably is.” You can never be too cautious when verifying the price, condition, or authenticity of a coin, regardless of when, where, or how it is offered for sale. The simplest way to protect your purchases is to rely on the skill and expertise of professional grading services and well-established, well-known dealers and experts in the kind of material you collect. No single person may have all the answers, but the true professional numismatists know where and how to find them.

Today’s fast-paced world has given rise to technology that can produce fakes that are nearly impossible to detect. Many of these are copies made in China. Specialists who are familiar with these operations are attempting to teach others through educational seminars.

Other threats to novice collectors today include overwhelming advertisements, special offers, scams, and fake rare coins offered for sale on the Internet and via other easily accessible platforms. Of course, they are not the only offenders, but they do seem to be omnipresent. Some of the most blatant ads are the numerous offerings of coins labeled as “without dates” (i.e., common worn coins) and those labeled as “without mint letters” (which everyone should know are Philadelphia Mint issues).  

Bait & Switch

Here’s how those scams work. A common U.S. coin is posted online as a “rare Buffalo nickel without a date, or mint letter F.” It is, of course, just a common worn piece. The price is listed as $800. A similar ad lists a similar piece for $40. Wow, what a bargain! As it turns out, the cheaper piece is from the same seller, who is happy to part ways with a coin that probably cost him only $3 or $4.

The seller may also add a designation, such as “Investment Grade” or “Marketable Grade.” Most novice collectors don’t understand these veiled descriptions because they rely on the universal, basic well-known grades of Poor, Good, Fine, Very Fine, Extremely Fine, and Uncirculated.

Most novice collectors don’t understand these veiled descriptions, making it easier for them to be swindled.

Keeping Up with Coin Designations

Being “old school” myself, my head starts to spin when trying to understand the many new definitions of how coins are graded. Some of the new grade levels now go up to 100 points, which can only be verified by specialized experts. Others seem to apply only to copper coins or silver dollars. Most foreign coins are graded according to each country’s standards; ancient coins follow their own rules; and archaeologists often use terms indicating whether a coin is new (fresh from the mint), worn (circulated), or unidentifiable. Even the U.S. Mint confuses us with strange terms like Business Strikes, Circulation Strikes, Reverse Proofs, Satin Finish, and Presentation Finish. It’s a lot to keep track of. 

With so many designations out there that might deter potential buyers, unscrupulous dealers have abandoned flashy lingo. They favor generic (and deceptive) descriptions like “Used,” “Pre-used,” or “Pre-owned.” As silly as that may be, it certainly is innovative and truly fits their need for deception.

Much present-day confusion can be traced back to the early 1940s, when the prime source of information for new collectors was in the front section of the Whitman Red and Blue books. Back then, the ANA Grading Standards and various professional grading services known to us today were just a dream.

Conclusion

This observation is not a comment on the usefulness of various grading systems. Nor am I attempting to criticize or ostracize any of them. Unfortunately, the “bad guys” out there will use the modern-day landscape to swindle unsuspecting collectors who are just trying to engage with and enjoy the hobby.

How fortunate it is that today everyone has easy access to numerous educational programs like Witter Coin U, Stack’s Bowers’ mentorship program, and the American Numismatic Association’s wide array of online and in-person courses, presentations, and conventions. If you haven’t used any of these resources, today should be the day. You always want to protect yourself from buying something that sounds too good to be true.