Would you pay $14,500 for this coin? This coin was sold to a Medical Doctor for that amount. It was sold by a well known east coast coin company. It is worth less than $100.
Thousands of consumers fall victim each year to rare coin investment
schemes. It is not uncommon for individual victims of rare coin investment
scams to lose more than $100,000.00 to a single telemarketing scam. Slick
telemarketers try to convince you that the dollar is weak and that rare
coins or gems or precious metals are a solid investment that quickly increases
in value. Don't be fooled. Few consumers ever profit from investing in
rare coins or other commodities, simply because the consumers do not know
enough information to make smart investment decisions.
If you are looking to invest in rare coins, do your homework first.
Independently research the rare coin market
Instinctively disbelieve everything the telemarketer tells you on the
phone. Go to the local library. Read numismatic (coin) and investing publications.
Talk to a respected coin dealer in your area.
Ask questions. Understand rare coin quality and grading. Learn realistic
market values. Research profit history in rare coin investing. Certainly,
an informed investor can make money with rare coins. An uninformed investor
can lose a fortune with rare coins.
Deal with a reputable company
Call the consumer protection agency or the Attorney General's Office
in the company's home state. Find out when the company started in business. If the company has a website, determine how long it has been selling on the internet.
Find out the company's history of consumer complaints. Be very wary of companies that telephone or write you unsolicited to sell you rare coins.
Be skeptical of the seller's certificates guaranteeing the value
of the rare coins
Value and grading are merely subjective. That means that different
people may have very different opinions about the value of the rare coins.
Value can also be based on many different things (retail price, wholesale
price, replacement cost, cash liquidation value, etc.). Independently hire
someone you trust to perform the appraisal of the rare coins. Learn the
cash liquidation value -- as this is the price you will probably receive
when you sell the rare coins. This price might be much less than you anticipated.
Stick with the top four grading companies
The Top Four companies are Consistent, Reliable and Trustworthy. They have Established and Respected Reputations. Their Standards are the Highest and the Best. You are taking a Risk when buying a certified and graded coin from any other company. When you Sell a Certified and Graded Coin, it will speak for you. The reputation of the Grading Company will firmly establish the Grade of the Coin. This translates into the Value or Worth of the Coin.
As a Coin Collector or Investor, know your dealer when buying uncertified coins. It is the most reasonable way to verify authenticity and identity of every coin in your collection, as well as to establish a reliable Value. Every source of prices for any coin, be it a yearly book, magazine, a weekly or monthly newsprint; all base their prices on the Grading Standards of the Top Four grading companies, which strictly follow the ANA (American Numismatic Association) guidelines. If the Grade of your coin does not measure up to these Standards, then you are only guessing at the Value.
Do not be pressured into making a bad decision
If the telemarketing salesperson uses high pressure tactics to force
you to buy now (we only have a few good items left or the offer expires
tomorrow), do not do business with this company. Ask the seller to put
all the terms of the sale in writing before you buy the rare coins, including
return and resale privileges.
Reselling your rare coins
If you need to sell your
rare coins quickly and the market is down, you could lose money on your
investment. Also, although you will buy your rare coins at retail prices,
you will probably sell them at wholesale prices. In fact, most investors
hold on to their rare coins for at least ten years. It may be very difficult
to find a buyer. Beware: telemarketing scammers (using a new name) often
target previous rare coin buyers for revictimization using claims that
they can help sell your rare coins.