Traps & Scams
Just because a Numismatic sale sounds good doesnt mean that it is. There are many dealers and seasoned professionals that use very deceptive marketing and advertising. Unfortunately there are far to many traps and scams to cover in one article, but Galaxy covers this subject on a regular basis in the Membership area under the Scam Alert section. It is not uncommon to hear reports where individuals and customers have been scammed for millions of dollars. The tricks, traps, schemes and scams range into the hundreds, if not thousands, and are carried out in a multitude of different ways, at times by just one or two people, sometimes by entire companies or investment firms. Anyone that is considering answering an add they have seen on television, in magazines or newspapers, on-line and especially telemarketing phone calls, should be skeptical at the least.
Most of these fraud artist and scammers rely on their victims lack of knowledge, experience and education in Numismatics. Just because the phrase "below wholesale", "special wholesale offer", "at dealers cost", "only 1% above cost", "half price" and a host of other phrases are included in a sales pitch doesnt make it true. When buying coins or Numismatic related items on-line there is a vast variety of things to watch for and be aware of. When buying coins or other Numismatic related items on-line everyone should use caution even if the seller appears to be well known and has high approval ratings. There can be profitable coin deals found on-line every day from places like e-bay, Amazon, and thousands of others, but the best place to get coins has always been the General Public. That being said, there are thousands upon thousands, perhaps even millions, of seasoned professionals, dealers, buyers and sellers, shops and stores both on-line and off-line, amateurs and new beginners around the galaxy that approach Numismatics with high standards, integrity, and honesty. There are thousands of dealers and sellers that buy coins in large bulk, get great deals at different style auctions, estate sales, and in many other ways (which we share with the Galaxy Membership) and do sell them at cheap or discounted prices.
Devalue By Cleaning
Far to often coins are devalued by being cleaned. Many people find or buy a really great coin and make the mistake of trying to clean it. One of the most popular methods is to scrub it with an old toothbrush and dish soap. Some even try running them through the dish washer. This should never be done under any circumstances. While it does get the coin cleaner, it also greatly reduces its value and may devalue it completely. There are chemicals and cleaners that can be purchased and used that will do wonders for a coin to help restore its luster and appearance but it is not highly recommended. It will make the coin look better and more appealing but the first question a person will hear is "What did you clean it with?" rather then "How much are you selling it for?" Coins should only be cleaned professionally.
There are several companies and individuals that offer coin cleaning services and many dealers and seasoned professionals offer that service as well. Not all coin cleaning services charge the same prices. Some charge a standard flat fee while others charge a percentage of the coins value in its final state. Some will charge an evaluation fee to determine if the coin will benefit from restoration and cleaning. Many things must be determined before any real consideration should be given to cleaning a coin. Such things as final cost, the sell value of the coin before and after cleaning, what method is used by the individual or company, if chemicals will be used are they industry acceptable and Numismatic friendly, all need to be researched and considered. Just like all other aspects of Numismatics, knowledge, experience, skills and education play a major role and strategies and methods need to be applied even in coin cleaning and restoration.
Some individuals find batches of coins to buy fairly cheap at flea markets or other such places in lower grades to soak them in chemical solutions in hopes of reselling the coins as being in a higher grade condition for much better profit margins. While they may have used the correct chemicals and read the instructions on the bottle, more often then not, the entire process goes very wrong and they end up stuck with the coins unable to sell them. The majority of the time these types of Numismatic mistakes are completely unintentional and can be attributed to a lack of knowledge and experience. Unfortunately, at other times, there are those that take such actions in an attempt to knowingly and intentionally sell a coin under false pretenses. This is something anyone buying coins from off the internet should carefully watch out for.