Atlanta Gold & Coin had previously published articles explaining how to identify reputable coin dealers. Based on the social-media activity seen at the time, those were among the company’s most popular articles, so this article took a somewhat different angle on the same subject. The information previously provided about recognizing reputable coin dealers still applied, but Atlanta Gold & Coin also wanted to offer an insider’s view of how it identified dealers with whom to conduct business. Readers may not have realized that the coin-dealer wholesale market was extensive. Major coin dealers around the country used that market both to sell surplus inventory and to fulfill orders. At that time, Atlanta Gold & Coin belonged to the nation’s two largest coin-dealer networks, CoinNet and Certified Coin Exchange, which together had approximately 800 members. Over the preceding several years, Atlanta Gold & Coin had worked with hundreds of those dealers and shared how it evaluated other coin dealers.
When It Sounds Too Good to Be True…
At the time of original publication, the article described the following: The familiar saying “if it sounds too good to be true, then it probably is.” applies not only to life generally but also to the coin-dealer market. Over the years before publication, Atlanta Gold & Coin said it had worked with dealers advertising above-market coin rates. Some nearly offered market rates, the prices at which Atlanta Gold & Coin sold coins. In its experience, those dealers selectively chose coins to buy at their advertised rates. They rejected nearly all coins in the stated grade and instead bought coins that graded higher at the same stated price. Put another way, the offers did not actually remain above market at the end of the transaction. The article referred, without naming it, to a large industry dealer with that reputation. Atlanta Gold & Coin said it had dealt with that company and had many coins rejected, then sold those coins to other dealers at standard wholesale rates. The purpose was not to single out a dealer, but to note that an offer that sounded too good to be true probably was.
Coin Dealers Who Are Excessively Critical
At the time of original publication, the article described the following: Dealers advertising above-rate prices can be expected to scrutinize coins closely, but the article said many dealers paying standard wholesale rates were also excessively critical. Such dealers might cite light toning, minor rim problems, contact marks, and other reasons to lowball a seller. Reduced rates can be justified in some circumstances, yet some dealers were said to take this too far. Atlanta Gold & Coin reported agreeing on prices with several dealers, then receiving lower offers after the coins arrived. On a few occasions, it agreed to sell slightly off-quality coins, including cleaned coins, only to be told later that the coins were polished and could be purchased only at reduced rates. Because cleaned and polished coins are distinguishable, particularly to experienced dealers, the article called this an obvious bait-and-switch tactic that the industry did not receive well. Some off-quality pieces can occasionally be missed, but when coins match their description, the agreed price should generally be honored. This was especially relevant to coins purchased mainly for silver content, including 90% silver coins. If average wear was present, the quoted price should have been honored. Atlanta Gold & Coin also said it had worked with people whose dealers claimed their gold coins were polished when that was not so. The article recommended avoiding this kind of dealer.
Coin Dealers with Troubled Histories
As it had advised customers and prospective customers, Atlanta Gold & Coin said it researched coin dealers online when considering a business relationship. Its process included reviewing Better Business Bureau ratings, looking for companies fined or cited by authorities or third-party coin organizations, and searching for the company’s principals. The final step had not appeared in its earlier article but was presented as important. When Atlanta Gold & Coin first joined a dealer network, it assumed participating dealers had been thoroughly vetted and were reputable. The networks might run criminal background checks, but the article said that at least one had admitted a dealer who had previously filed bankruptcy and then opened under another company name. Atlanta Gold & Coin reported later having problems after shipping coins to that dealer: calls, e-mails, and network communications went unanswered, and payment came only after continued efforts. The company said it would not conduct business with that company again. Its takeaway was to search the company’s principals online, not solely the company itself.
Slow to Pay or Deliver
At the time of original publication, the article described the following: Atlanta Gold & Coin said it avoided dealers that were slow to issue payment or ship products, and at publication recommended that readers do likewise. This was usually a concern only in mail transactions, since local dealers generally paid or delivered merchandise when the transaction occurred. As discussed above, an online search could help identify possible payment or delivery problems with a dealer under consideration. Atlanta Gold & Coin said it had put slow-paying or slow-delivering dealers on a banned list. It reported regularly accepting a lower payout to work with dealers known to fill orders promptly or issue payment promptly, and monitoring its dealer networks for reports involving other dealers. Regarding order fulfillment, the original article told readers that many online dealers did not have inventory in stock when a customer purchased and paid. Instead, they accepted funds and bought coins through dealer networks, which could explain delays of weeks or months before an order arrived. Atlanta Gold & Coin said it operated differently: it did not take money to place an order through the wholesale market, but required a 10% deposit for carrying costs and to cover a customer backing out.
Summary
At the time of original publication, the article described the following: In summary, Atlanta Gold & Coin described several ways it evaluated dealers before doing business with them. Based on its experience, offers above market often did not prove to be what they seemed, so it avoided them unless it had already had positive dealings with that dealer. It also said overly critical dealers were not worth working with; the article stated that these dealers could use bait-and-switch tactics to attract someone to a shop and then quote low prices in person. Third, it advised readers at publication to search the principals of a company online, not only the company, because that could reveal previous citations or a person operating under a new company name after earlier problems. Finally, it advised avoiding dealers known for slow delivery or payment, which it said created needless stress. The original article expressed hope that readers found the information helpful and invited them then to contact Atlanta Gold & Coin for further assistance.
