What happens if a coin dealer accidentally sells a fake coin?

Discussion in 'Coin Chat' started by Gam3rBlake, Apr 11, 2021.

  1. Gam3rBlake

    Gam3rBlake Well-Known Member

    Did you watch the video? Those slabs were decent but there are even better ones too!

    Frankly I just think there should be an unspoken rule that anything sold by a coin dealer is guaranteed genuine (unless specifically stated otherwise) and fully backed by the coin dealer.
     
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  3. eddiespin

    eddiespin Fast Eddie

    There is a rule. They're representing it's everything it's purported to be when they're offering it for sale to the public. It's not in the United States Code, if that's what's a little confusing. ;)
     
  4. Mike Thorne

    Mike Thorne Well-Known Member

    Most of the mail-order coin dealers' ads I've seen over the years state that they guarantee authenticity of what they sell. That seems to me to indicate that they would take back anything proved to be fraudulent. Hard for me to imagine that someone wouldn't stand behind what they sell, but I'm sure it happens.
     
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  5. baseball21

    baseball21 Well-Known Member

    There is. There’s laws that say so as well. Again though the problem is and always will be proving that it’s exactly what you bought from them. If you can prove that almost every dealer would refund it for it back.
     
  6. Gam3rBlake

    Gam3rBlake Well-Known Member

    That’s true. Someone could buy a real coin from a dealer and then buy a fake coin of the same kind online and try to take the fake one in and saying it’s the one he sold them.
     
  7. baseball21

    baseball21 Well-Known Member

    And people do do that. People try and scam dealers all the time which is why it’s not as simple as just walking in saying you got it there and it’s fake.
     
  8. Gam3rBlake

    Gam3rBlake Well-Known Member

    I think they could probably find a way to figure out a way to make it work.

    Like maybe taking a high definition photo of the coin and having that on the same paper as the receipt.

    Every coin is unique and has its own unique dings & toning and such.

    Heck there is a PAMP app that can tell a buyer if their gold bar is a legit PAMP gold bar or not just by taking a photo of the bar which then is compared to PAMPs own photo of the bar to see if they match.
     
  9. baseball21

    baseball21 Well-Known Member

    So your receipt is going to be a mile long and they’re gonna take an hour to check you out if you buy 20 coins as they photo everything?

    Maybe one day but it’s no where near that today.

    There’s a lot buyers can do to protect themselves. Stick to graded on expensive coins, if you want to be super paranoid only do the new PCGS holders with Trueviews and red chips, best price isn’t always the best, buying online is actually safer than shows as there is a traceable trace of what happened etc etc. Study up, look at auction pictures etc.

    If the first inclination is to be worried about a fake walk away. No matter how many hypotheticals and what should happen if you walk back into a random shop months or years later with a fake there’s little to no chance you’re getting the money back
     
  10. Publius2

    Publius2 Well-Known Member

    I don't know the answer to this. Let's say you buy a slabbed coin with a genuine slab but the coin inside is fake. If it's certain that the TPG slabbed a fake coin, doesn't the TPG guarantee of authenticity mean that any owner of that coin will be made whole (more or less)? It wouldn't matter if the dealer took it back. If the dealer refused to make his customer whole, the customer can go to the TPG for relief? True or not? What are the nuances?
     
  11. baseball21

    baseball21 Well-Known Member

    They would give you market rate for it, or offer a replacement or a combo of both. There’s a lot of factors free that like submitter history dealer that sold it etc where they may go after them if they think it’s a calculated operation.
     
  12. Gam3rBlake

    Gam3rBlake Well-Known Member

    Well maybe they could put some limits.

    Like only doing it on coins that cost $500+ or something.

    Or only doing it if the customer pays a small fee for the peace of mind.
     
  13. Gam3rBlake

    Gam3rBlake Well-Known Member

    It depends on the TPG.

    NGC & PCGS has a guarantee where they will provide one of two options:

    1). They will pay you the fair market price of the coin.

    2). They will replace the coin with a genuine coin of the same type, date, mint and grade.


    So if you buy say a fake AU53 1893 S Morgan Dollar in a real holder they will either pay you the fair market price for that coin or give you a real AU53 1893 S Morgan Dollar.

    The TPG gets to choose which option they do.

    Some TPGs have no guarantees whatsoever.
     
  14. Gam3rBlake

    Gam3rBlake Well-Known Member

    Don’t forget it depends on the TPG.

    Some don’t have any guarantees at all. Others are out of business.
     
  15. baseball21

    baseball21 Well-Known Member

    I don’t consider those graded coins, those are raw coins in a holder.
     
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