When this article was originally published, the bankruptcy filing of Northwest Territorial Mint underscored the risks tied to buying coins online. The original article described this as the fourth bankruptcy involving a national online coin dealer during the preceding several years. It had also identified other well-known online dealers that had failed, including Tulving, Merit and Bullion Direct. These were not short-lived, fly-by-night operations; each had operated for years before encountering financial trouble. At publication, online listings could still present worthwhile opportunities, and prospective customers regularly showed Atlanta Gold & Coin examples they had found. But without careful research, receipt of an order—particularly within a reasonable time—was not assured. This article was not intended to discourage online coin purchases. Instead, it outlined added precautions that could improve the likelihood of a successful transaction and compared local purchasing with online purchasing.
When an Offer Seems Impossibly Good…
At the time of publication, people who searched online for coins from time to time were likely to encounter a steady stream of advertisements covering many coin types. Some advertised pieces were priced well below the market and appeared unusually attractive. The original article noted that, from a dealer’s perspective, certain online advertisements listed coins and bullion below wholesale cost. That kind of pricing could signal that something was not quite right. Some advertisers were established, reputable businesses, but the article also observed newer companies about which little information could be found. It further cautioned that some companies used incoming customer funds to fulfill orders already placed, a practice that could create lengthy delivery delays. According to the article, this was how many online coin dealers that had since failed got into difficulty: customer funds were used to complete earlier orders. Readers at publication were urged to pause and evaluate an offer before becoming involved in a possible scheme.
Understand Whom You’re Doing Business With
Avoiding offers that seem implausibly good was one protection discussed in the original article, but it emphasized that understanding the business behind an offer was even more important. When this article was originally published, the internet made information about established companies relatively easy to find. Better Business Bureau reviews, along with general searches for a company and its principals, could uncover useful details. Researching company owners could matter as much as, or more than, researching the business name, because owners might hold interests in several companies or have operated similar ventures that had failed before. At publication, a customer brought Atlanta Gold & Coin’s attention to multiple complaints concerning a Minnesota coin-business owner who had sold the customer’s father overpriced numismatic coins. The article also described a dealer encountered through a network who, unknown to Atlanta Gold & Coin, had previously declared bankruptcy and reopened under another name. Although the dealer had been assumed to be properly vetted, the account stressed the value of independent research. The original article stated that this appeared to be the dealer’s second failed venture because a new contact appeared on the company roster, and it questioned whether a third dealership attempt would follow.
At publication, Inventory Status
As noted earlier in this originally published article, not every coin dealer held the coins or bullion it was selling to customers at that time. For that reason, readers were encouraged to ask an online dealer whether an item was live product or on back order. Where possible, the article favored live product because it generally should have shipped within several days after an order was placed. A dealer without live product was not necessarily one to avoid, since demand could occasionally exceed supply by a wide margin. The article pointed to the previous July through September as an example, describing a perfect storm involving the Shemitah, the Four Blood Moons, and worries about an imminent stock-market collapse. During that period, Atlanta Gold & Coin reported placing more than $500,000 in special orders for customers, while handling those transactions differently from certain competitors. Rather than using customer funds to acquire items, Atlanta Gold & Coin reported requiring a reasonable deposit solely to protect its interests. The article expressed the view that every coin dealer should use a comparable approach, while acknowledging that this was unlikely soon. At publication, readers unable to obtain a straightforward answer about a dealer’s inventory were advised to consider other options.
Shipping Time
Although live product was generally expected to ship promptly when this article was published, the article said buyers should still confirm both the estimated shipping time and shipping method. A purchaser might not have been preparing for the Day of Elul, as some customers reportedly were during the prior year, yet an order could still need to arrive by a particular deadline for other reasons. There was also understandable unease after ordering any large-ticket item until it reached its destination safely. The original article recommended requiring a signature because FedEx and UPS packages were often left on residential porches. It noted that a package containing thousands of dollars in valuables was especially undesirable left in the open, particularly around holidays, when thefts were said to increase.
Consider Working With a Local Dealer
The possible online-purchase concerns described above were included in this originally published article to inform readers, not to dissuade them from buying coins online. It explained that working with a local coin dealer could avoid many, and perhaps most, of those concerns. At publication, local dealers generally placed substantial value on developing customer relationships, which could make them more likely to offer useful direction and steer customers away from poor decisions. Over time, a customer could build rapport and trust that might be difficult, if not impossible, to establish with an online dealer. The article said local customers could regularly check inventory levels and, in many cases, take physical possession of coins or bullion during the transaction. For a special order at that time, it suggested considering a local dealer that accepted a deposit rather than requiring full payment before placing the order. It also noted that local dealers could keep customers informed about new inventory that might interest them. The original article further stated that regular local business could bring preferred pricing, and that loyal customers might receive early access to new inventory. That access could be especially useful during industry shortages like those the article said occurred in the preceding year.
Summary
In closing, this article advised that anyone buying coins online at the time should conduct careful due diligence. If an online coin offer appeared too good to be true, the article’s position was that it probably was. Readers were invited at publication to review an online dealer’s standing with the Better Business Bureau and research its owners or principals for prior problems. The article also recommended confirming the inventory status of the item being purchased, together with the estimated shipping time and shipping method. For readers at publication who found that level of research overwhelming, or who preferred face-to-face transactions, the article suggested considering a relationship with a local coin dealer. Proper research of a local dealer still mattered, but the article described possible local benefits: receiving coins or bullion at the transaction, having someone focused on the customer’s interests, possible discounted rates for regular business, and early access to new inventory, among others.
