Link as follows: https://au.news.yahoo.com/thewest/latest/a/23045138/compo-for-inflated-coin-valuation/ Bear in mind that a holey dollar is quite rare even in Australia. That said, if you have enough money to buy a house, I would think twice in bombing that much on a single coin. Your opinion? Implications for dealers making "promises"?
A very poor business decision. For a better return on investment, choose an education that leads to a career in the legal profession. Legal fees make a bundle off such disputes over claims/promises. Save a lot more money and buy a modern piece like the 200th Anniversary of the Australian Holey Dollar and Dump 2013 1oz Silver Proof Coin Set.
What?!?! Some coin dealers are dishonest thieves who will tell a purchaser anything to make a sale? In all seriousness, there ARE a very disproportionate number of thieves in the coin collecting hobby. There always have been. I wonder why?
I disagree, they exist in basically equal numbers in any field, all fields. But do you really want an answer as to why ?
I know they exist everywhere, and why, but I am simply reacting to the large, large numbers of scams perpetrated by "coin dealers" ever since I have been involved in this hobby. I mean, every single year there are multitude of stories how retirees are sold morgans worth $500 for $10,000, damaged coins sold as full value, etc ad nauseum. I have never heard the same quantity and magnitude being perpetuated by any other hobby. Sure, stocks have always been plagued with this as well, but are much cleaned up today. Maybe part of it is that bullion dealers also usually get lumped in with coin dealers, but still. In my view, our hobby which we love so much still seems to be plagued by an overabundance of scam artists. Yes, if you educate yourself its easy enough to avoid them, but it still gives our hobby a serious black eye. Most people who hear I collect worry about me getting ripped off, such is the general opinion of coin collecting to the general public.
There will be scammers anywhere money is involved, like you said stocks are also notorious because its big money. There are also lots of "borderline" scams that occur in the stock market that aren't talked about because they may not actually be illegal, just immoral. (same goes for the coin market as well)
I think a lot of scams are boiler rooms. They are neither coin dealers nor stock brokers. They are "slime from the depths." A phrase Jung used to describe something else, but still fitting for those people.
It's human nature to recognize and remember the bad and not even see the good let alone remember it. And there is no story in it to be reported (not newsworthy) when a dealer or another collector makes a fair deal, so it's only the bad stories you hear about. Are there lots of instances where people get ripped off ? Of course there are. But I'd bet the good outnumber them 100, maybe a 1000 to 1. We just don't hear about it.
I am not entirely convinced there are that many more thieves in the coin collecting hobby as there are in any other industry where a significant amount of money can be made (either legitimately or not). But if you want an answer why thieves are around, just remember John Dilinger's comment as to why he robbed banks: "Because that's where the money is."
My thought is information. When you have the amount of money involved in coins and the discrepancy of information between dealer and collector it creates an opportunity for someone to exploit another. Everyone on this site talks nonstop about the need to educate yourself but the fact is I have to go to work and so do most collectors. Someone who spends every working day focused on coins will almost always have a significant advantage in knowledge then the average collector. Yes there are a few collectors who know as much or more but for every highly educated collector there are many more with much less knowledge. Personally I think tpg's have brought value to the hobby by helping to level the playing field between dealer and collector. While not every slab is accurate it helps the less knowledgable collector protect themself from over grading on buying and under grading on selling. I know I would not purchase coins of high value without tpg's. I feel like I have some education but not nearly enough to buy a raw proof trade dollar, or pattern. It's not coin dealers ripping off collectors, it's people. And most relationships in our society when there is this much of a discrepancy fiduciary agreements come into play. When I deal with people when I'm at work they almost never know what I know just as I might not know to check certain coins for details. I'm not advocating for government regulation of coin dealers. I'm just explaining why dealers might be more tempted then others because they have access and opportunity. I'm sure bankers would have a higher rate of theft and corruption if there were no records kept, or mint officials allowed to walk the floor and take home whatever they want.
