At the time this article was published, the preceding Saturday had been Halloween. The original account described taking the author’s son and his cousins trick-or-treating, as the family typically did. Following the usual tradition, the children said “trick or treat” when someone answered the door. Of course, they were not truly asking for tricks. They were hoping for a treat instead, preferably a full-size candy bar. That contrast was presented as an analogy for the coin industry. People who purchased coins, whether they were numismatists, coin buyers or otherwise, hoped their purchase would prove to be a treat rather than a trick. This article was intended to identify several coin-industry tricks that readers might or might not have known about, with the aim of helping them avoid these common pitfalls.
The original article identified five practices commonly seen in the coin industry. At the time of publication, it advised readers whose main purpose in purchasing coins was investment to avoid these coins and sets.
- Impressive Packaging – Privately made or hand-assembled coins and sets presented in striking packaging can sometimes contain coins of limited underlying value, or be priced at a substantial premium over market value. At the time of publication, the article noted that some businesses earned their living by placing subpar items in upscale packaging and marketing them to unaware customers, despite little or no potential upside. When an item under consideration came in attractive packaging that had not been issued by the U.S. Mint, the original article encouraged additional research before making what it characterized as a potentially frightening purchase.
- Subpar Grading Companies – Another practice described in the article involved firms that, at the time of publication, were selling coins professionally graded by second- or third-tier third-party grading services (TPGS) at premium retail prices. The two leading TPGS identified were Professional Coin Grading Services (PCGS) and Numismatic Guaranty Company (NGC). ANACS and ICG were also described as respected, reputable TPGS, though their assigned grades were often one or two grades higher than those given to comparable coins by PCGS or NGC. Put differently, the article considered their standards more lenient than PCGS and NGC. While other dealers could disagree, Atlanta Gold & Coin’s published guidance was to avoid graded coins from companies not named above, except where the coins were heavily discounted.
- Theme Inspired Sets– Although this was not invariably true, the article’s experience was that theme-based sets, whether attractively packaged or not, were marketing devices unlikely to gain value over the long term. Examples included sets containing the first and final year of a coin’s production, commonly for a type coin such as an Indian Head penny. Sets organized around time periods, including coins from multiple decades or century sets, were also said to have a record of weak long-term performance. In addition, sets centered on historical people, including presidents and/or founding fathers, were generally described as having only nominal value. As stated earlier in the original article, readers were encouraged to research any such coins or sets before considering them.
- Historical Events – Although these pieces technically fit within the theme-inspired category, the original article noted a substantial number of government-produced and privately produced coins, bars, and rounds commemorating events in the nation’s history, so it treated them separately. Nearly every significant historical event had been commemorated through coins, bars, or rounds, including the nation’s founding, the Civil War, World War I, Pearl Harbor, World War II, the Civil Rights movement, and 9/11, among many others. The article did not question the importance of those events, but explained that many related coins, bars, and rounds had limited value. At the time of publication, Atlanta Gold & Coin advised avoiding high-priced coins and rounds with little or no intrinsic value, including nickel-copper, gold-plated, or silver-plated pieces. Buying them solely as a remembrance of important events was presented as a different purpose, but the article cautioned against buying them expecting appreciation.
- Cleaned or Polished Coins – Cleaned or polished coins did not necessarily need to be avoided, but the original article said they should not command retail prices. Unless someone was experienced in the coin field, identifying them could be difficult, so the article offered several indicators. Uncirculated coins made by the U.S. Mint should display a snowy, frosted appearance, commonly called mint luster. As coins circulate over time, that luster fades. A coin should not, however, develop a shiny appearance on its own; such a look generally indicates cleaning or polishing. A 10x magnifier or loupe could assist with identification. At the time of publication, the article stated that matching striations in length and direction likely indicated alteration and that such a coin should be purchased at a discount.
These were only several examples of coins and sets the original article considered more likely to be tricks than treats. It did not suggest that the highlighted items were inherently improper. Rather, at the time of publication, it noted that they were often sold at high premiums and were not likely to appreciate substantially in the future. For people whose aim was simply to remember or honor significant individuals, dates, or events, rather than anticipate a profit, the article advised performing due diligence before making a purchase.
