Coin World has a lead article this week on the efforts of PNG to expose the scam gold buyers. One of the "bait" coins was a 1925-D 2 1/2 dollar Indian in MS66. One of the buyers offered only $60 for the coin in the NGC holder, which looks to be a really nice coin. My guess is that the government regulators are going to start going after these scammers. Good luck to them!
I dont like all the gold places as they don't pay near enough per gold spot but for them to offer what price guides are on graded Numismatic coins is too far. They are not coin people they are gold people. Yes many of them know about both but not all. If they offered somewhat to spot I'd be fine I guess. A coin store would be a different story.
Going after them for what ? They not doing anything that is illegal. They could offer 35 cents for a 1933 double eagle and it would not be illegal to do so.
I think the article mentions some buyers may have crossed the line in that they advertised they pay the highest prices and/or they pay numimatic premiums, not just melt.
numismatic premiums just means more then just what they'd offer for melt. Even a cent more could be numismatic premiums. And as for "they pay the highest prices" is not a breaking of the law that is general advertising practices.
We'll see how/if it's prosecuted and what the outcome is. A premium could be one cent, but, to me, a numismatic premium means something to do with the going price for the coin based on it's rarity & condition. I'd say it's about time dealers are held to some kinda standard, rather than anything goes.
Agreed we'll see how it turns out. And I agree a numismatic premium should be more in line with general price lists. But as for: "I'd say it's about time dealers are held to some kinda standard, rather than anything goes." What do you suggest? Our system now is: if their prices are too high you stop shopping there. if there buy prices are too low then you don't sell there. If both happen enough then they go out of business. What more do you want?
True, over time the market will "police" itself, weeding out the bad ones. I guess, unfortunately, in the mean time, the "unknowing" will be taken advantage of. So, it's up to the government or someone who got took to file a complaint and pursue the matter. Short of regulation, a precedent set in court could create "common law" that can be relied on. I haven't researched the topic, so there may already be some regulations or court case that could apply to coin dealers/buyers. I know Coin World sometimes has a column that discusses current court cases that may apply to coins. Some time spent “googling” on the internet may also give us some guidance.
