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Every week, folks contact me wanting to sell me coins and other collectibles that they purchased on various TV shopping channels (most often the Home Shopping Network (HSN) and online (most often eBay). 

After going through their material, I make a fair offer that is usually met with: “But I paid $xx for this coin!  How could you pay me so much less?”) 

I wrote this article to put the rest of you on notice: The TV shopping channels and many online sellers are ripping you off – and it is usually perfectly legal. 

BUYING FROM THE SHOPPING CHANNELS

To illustrate how you can get ripped off by TV shopping channels, I’ll use a real life example from HSN. 

HSN is selling 20 brilliant uncirculated Morgan silver dollars as a single lot.  To start, HSN makes the following true statements.  

1. Morgan Silver Dollars haven't been minted for more than 80 years.
2. 1921 was the final mint year for Morgan dollars
3. Each coin contains over 3/4 oz. silver from the famed Comstock Lode in Nevada. 
4. Its 1-1/2" diameter dwarfs coins in use today - so large because by law it had to contain exactly one dollar's worth of silver which was then price fixed at $1.29 per ounce.
5. The Morgan was named after George T. Morgan, its designer, and was minted from 1878 - 1904 and then again in 1921.
6. The coins feature Lady Liberty on the face and an eagle on back. 

So far, so good.  HSN is being completely accurate.  Now the deception begins. If you read further down the item description, you will see the following statement: 

“Few (Morgans) are left, particularly in this great condition, because the Pittman Act of 1918 required that they be melted down for their silver content.” 

First of all, their claim that “few are left” is untrue.  There are millions of Morgan dollars in collections worldwide.  And even though there was a major coin melt in 1918, there are still many mint years that have coins of quality available for under $25. 

But remember here that they are selling 1921 Morgan dollars.  1921 was not only 3 years AFTER the great coin melt of 1918, but the total coins minted in 1921 were a whopping 86,730,000, over 4 times more than ANY other year of Morgan production.  In brilliant uncirculated condition, the collector should be paying NO MORE THAN $20 per coin.  If there is any wear or other problems with the coin, its retail value can drop to as low as $5-$10 per coin. 

In this example, HSN is charging $499.95 for the coins and $11.95 for shipping and handling, making your total cost $511.90.  This comes out to $25.60 PER COIN and you can wait as long as 10 days to receive your order. 

BUYING ONLINE

You need to exercise caution when buying coins via internet auctions like eBay.   

If you are buying government-packaged items like mint or proof sets, you are unlikely to get hurt, as there is little variation in quality between one mint/proof set and another.  Be sure to check the shipping costs, however, before bidding.  They can often push coin prices above retail.   

Rare coins are a different game altogether.  When buying rare coins, the difference between coins of various grades (a rating system used to determine the quality of a coin) often mean BIG money.  For example: 

An 1880-O Morgan dollar in a grade of MS-63 retails for $310.  In MS-64, the next highest grade, the same coin sells for over $1,500.  And in MS-65, one grade higher, our 1880-O Morgan dollar sells for a whopping $17,500.  The safest way to buy rare coins over the internet is to buy only graded coins that have been evaluated by a reputable coin grading service and then encapsulated in a clear plastic holder known in the industry as a “slab.”  The catch is that you will typically pay top dollar for slabbed coins, reflecting their “pedigree” and the $15 to $150 fee paid for getting the coin slabbed in the first place.  Also, most people are aware of the grading services so there are not many true bargains to be had on graded coins.   

To make things more complex, there are even differences between grading services and these differences can have a tremendous impact on value.  The top tier grading services are the Professional Coin Grading Service (PCGS) and the Numismatic Guarantee Corporation (NGS).  The grades assigned by these two services are accepted by the dealer and collector community as “gospel.” The second tier of grading services, in my opinion, is occupied by ANACS alone.  I consider ANACS grading to be as good as PCGS and NGC, however, the coin market does not put ANACS on the same plane as the other two firms.  Still, ANACS graded coin fetch very good prices. Third tier grading services include PCI, NTC, SEGS and ASA-Accugrade.  Coins graded by these services are looked upon with great suspicion. 

The best deals to be had, by far, are on raw (ungraded) coins.  To effectively buy raw coins, you need to learn about coins.  This is not only profitable, but also FUN – a word forgotten by a large percentage of the coin buying market.  You CAN do this successfully over the internet, but you must know what you are doing first.  The best way to do this is to find a local dealer and stop by their shop.  They will help you become an informed collector and have a wide selection of coins to show you.  You might find that their prices are cheaper than those on eBay – especially considering the shipping and handling. 

If you do buy online, look for dealers with at least 98% Positive feedback.  If you have a satisfying purchasing history with one dealer, stick with them if you can.  Make certain that any dealer at least guarantees the authenticity of the item they are selling and (preferably) offers a 10-day money back guarantee.  We sell coins on eBay all the time and guarantee every item we sell. 

My advice is to buy your coins from a reputable dealer, in-person if possible.  Not only will you save money, but you will gain the knowledge you need to enjoy your collection to its fullest. Naturally, I would like you to purchase your coins from us, but you can choose from a number of honest dealers in your area. 

If you have any questions, feel free to call me at 678-463-8225 or email me at: billing@theeccentriccollector.com.