Collecting Quality Coins and Retaining Their Value

In Coin Collecting Credibility is Essential

By:  Henry M. Smith

                 When one collects coins, one must be as certain as possible that every coin purchased is authentic, properly graded, and exactly as advertised.  This requires credibility.

                 Credibility of the quality of a coin can often be ascertained by the reputation of the mint that produced it, provided it is still housed in whatever the mint used to preserve it.  Mint cards that seal the coin can indicate authenticity and quality.  If the card has not been tampered with, the coin’s condition is likely to be what it was when the coin left the mint.

                 Mint cases and certificates of authenticity are another matter.  Some Ebay auctions are for empty boxes or certificates of authenticity.  Some dealers sell empty boxes.  The problem is they damage the field of numismatics when they do this.  The most likely use for empty cases, and perhaps certificates of authenticity as well, is that they can be combined with an inferior coin to enhance its price.  This practice of selling empty cases and certificates of authenticity, while legal, is not good for the coin collecting public.

                 Some mint issues are only produced in proof condition.  If the coin is in a capsule, and could not have been replaced with an inferior coin, consider it to be safer than most other coins.  The Perth Mint does not mint a Dreaming Series silver coin in any other condition, so a silver Dreaming Series coin housed in its original case from Perth is likely to be a proof, uncirculated specimen.

Knowing the variations of the coins you buy are your responsibility, and sometimes takes a little research.  But that research is well worth it.  If there are proof coins identical to those not proof, the case and certificate of authenticity are not enough to insure no switch has been made.

Buying “graded” coins sealed in slabs is a plus when assigning credibility.  But there are many grading services with dubious reputations.  Make certain the slab is from one of the top grading services.  Even those grading services that have established reputations can make mistakes, but the chances are less likely they will.  Some services with lesser reputations appear to be grading high to have the customer send more coins to them.  Pleasing the seller with a high grade when the coin is of lower grade does the buyer no justice.  With grading, it is all about the reputation.

Even the top grading companies are currently struggling with counterfeit slabs with their markings coming out of China.  Examine the slab closely and check the number for authenticity.

Coins purchased directly from a mint should be problem free, and if you trust a dealer those the dealer purchased directly from a mint should also be error free.  The next paragraph can assist you in establishing a criteria for which determining dealers you wish to trust.

While the credibility of the coin is important, the credibility of the seller is even more critical.  The ANA has a strict code of ethics, as does the equivalent organization is Australia.  Anyone can go to the ANA website and check the code of ethics.  Dealers are permitted to display the ANA emblem on their websites, but only if the dealer is willing to place that dealers’ name and membership number with the emblem.  If the emblem is not properly displayed with the additional information present, ask if something is being hidden.  Deal with those who have the credentials, and you will reduce your risk.

Certainly there are many dealers who are honorable, but if they have not yet sought to associate with an organization that would hold them accountable perhaps they should do so.

For links to major English speaking mints, like the Perth Mint of Australia, and to the ANA, just go to Black Spaniel Gallery’s website, http://blackspanielgallery.com from this link.  Check the Home Page for the ANA emblem properly displayed.  Black Spaniel Gallery buys many coins directly from major mints, and you can view what comes with them on our website.

This article is being made available from Black Spaniel Gallery at http://blackspanielgallery.comby the author.  Links to major English speaking mints are available at Black Spaniel Gallery.

Coins are an investment, so be very careful.  Check each coin’s authenticity, each coin’s grading, and each dealer’s reputation.