Coin Collecting

Coin Collecting Scandals

Collectors must be vigilant when choosing what coins to invest in and add to their collections. Just as in the tradition of rare art and antiques, the coin-collecting business is well acquainted with fraud. While the Internet is providing a new breeding ground for numismatic fraud, it has long been common in other venues from mail-order establishments to flea markets. Continue below.

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In addition to fraud, counterfeiting is a huge problem in the world of coin collecting. If you doubt the integrity of a coin, have it valued by a reputable coin grading service. But even that route can spell trouble. Unless you use a highly respected grading firm, the fraud may be perpetuated. Some less than savory coin graders have been known to authenticate clear forgeries, leaving the owner with an even bigger mess on their hands.

Another type of coin fraud involved re-engraving a coin to hide the wear the coin has received. These are easiest to spot when you look at the finest details of coin compared to a high condition version of the same denomination.

Regardless of where coins are purchased, it is best to buy in person if possible. Pictures online or in catalogs can appear misleading. Even if it is a real coin, a counterfeiter has the ability to alter it from the original state. For example, a 1946 Mercury Dime can be changed to look like a 1916 Mercury Dime, which is a more valuable year.

For similar reasons, many collectors are especially apprehensive to purchase coins from sources such as eBay, which has been wrought with fraud.

While most coin dealers are honest individuals, it is still important for collectors to know what they are getting. Many numismatists establish a lasting relationship with several coin dealers with whom they can trust.

The Coalition of Internet Numismatists Against Fraud (CINAF) was created with the mission of eliminating coin scandals. They seek to educate collectors to help them make better informed decisions about purchases. They also serve as industry watchdogs by assisting local and national law enforcement in identifying fraudulent activity.

Their presence helps to retain confidence in the hobby of numismatics as well as upholding the positive reputations of the many honest coin dealers that exist.

The Professional Numismatic Guild is a non-profit organization whose goal is to protect coin collectors from fraud and misrepresentation. Their member dealers must have a verified amount of over $100,000 in numismatic assets before they can join, and all members are full-time coin dealers with an average of more than 25 years of experience in the field.

A great advantage to finding a dealer through the PNG is their arbitration process; an unbiased third-party arbitrator will handle any disputes arising from a purchase from one of their members. View their complete member list settle any at the Guild website at www.pngdealers.com.

The American Numismatic Association and the American Numismatic Society also have lists of recommended dealers available on their websites. Membership in these societies assures the buyer that the dealer will be held to certain standards of integrity and conduct, and the buyer will generally be safer than when working with a private dealer.

When considering a purchase, understanding the grading of coins is critical to the collector. The National Numismatic Grading System offers books, videos and accepts submissions of coins to be professionally graded.

The Numismatic Guarantee Corporation also offers coin-grading services, based on the standard scale of 70 points. If you are thinking of buying a particular coin, this can be a good place to look to determine a fair market price before you put down your money.

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