Let's take a closer look at these important standards for coin dealers.
5 Tips on How to Evaluate Coin Dealers
(1) Is the Coin Dealer Experienced? There's an old saying around numismatics that goes, "Buy the book before you buy the coin." While this is excellent advice, and I strongly recommend following it, the fact is that not everyone can become an expert. If you are buying coins. especially for investment purposes, you want a knowledgeable, reliable coin dealer who can give you accurate advice.
Would you go to a novice for advice on investing in the stock market? If not, then don't go to a coin dealer unless he has solid credentials.
(2) Does the Coin Dealer Have Any Assets? Although the overwhelming vast majority of coins on the market are genuine, there are occasionally some fakes that turn up. You want to know that the dealer is likely to still be in business five years from now if that $20 Saint Gaudens High Relief treasure turns out to have been a high tech fake somewhere down the line.
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Although certification services and slabbing have palliated this concern somewhat, a coin dealer's financial stability is a good indicator of the likelihood that he'll be around for a long time and financially able to provide recompense.
(3) Is the Coin Dealer Known Among His Peers? One of the best safeguards you can get is from using a dealer who has been vetted by his peers before being permitted to join a guild. After all, if the coin dealer has a bad reputation, or isn't respected in his own community, he's probably not a good choice to do business with. Especially when that business involves investing for my (or my kids') future.
(4) What Are the Coin Dealer's Ethics? There is nothing more disheartening to me than standing at a dealer's table at a coin show. and watching some little old lady approach the dealer with a jar of old U.S. coins. to have the
dealer barely glance at them and say, "I'll give you 10% over face; that's all they're worth and I'm being generous." A coin dealer such as this isn't just being lazy; he's hoping to make a score. He's hoping that there'll be something in that jar that will spell a big payday for himself. But even if we give him the benefit of the doubt, and attribute his action to laziness, is he being fair with his customer? She was trusting his expertise. Would you like to do business with someone who treats his customers that way?
Coin dealers who subscribe to a code of ethical standards, such as that espoused by the PNG, have enough respect for their customers to take that extra 2 or 3 minutes to look through the little old lady's jar and give her an honest appraisal. They agree to respresent their merchandise fairly, grade coins honestly, and treat people ethically. These sound like traits you should expect anyway, right? Unfortunately, this isn't always the case, so think about this before choosing a coin dealer to do business with.
(5) Do You Have Any Recourse if You Get Ripped Off? Coin dealers who are full members of the PNG have agreed to submit to binding arbitration to resolve disputes. This is a very important consideration if you are buying expensive coins, or coins for investment purposes. What happens if there's a dispute? If you don't choose your coin dealers carefully, you might just be out of luck, unless you have the time and energy to file lawsuits and complaints with government agencies. Why not avoid that possiblity to begin with, and do business with coin dealers from whom you have some recourse.
How to Find a PNG Coin Dealer
The PNG has an online coin dealer directory where you can search for coin dealers using various criteria. The next time you buy coins, think about the things in this article when you decide who to buy from. Someday, you might be very glad you did.