27 March 2022
The rare coin market continues to soar following a record-breaking marketplace in 2021, according to the experts at the Professional Numismatists Guild (PNG), but collectors are being urged to be cautious about fraudulent, online advertisements selling counterfeit coins and fake gold, silver, and platinum bullion items.
PNG President Richard Weaver said
‘Last year, a record 22 U.S. coins sold at auction for $1 million or more and hundreds of other historic coins and banknotes priced from $1,000 and up set new records when more than $551 million of U.S. rare coins were sold at major public auctions.
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'The market boom continues as during the first month of 2022, there were reports of nearly $70 million of U.S. coins already sold at major auctions in January.’
However, Weaver cautions consumers and investors that social media platforms have become the predominant choice of counterfeit coins and bullion market fraudsters.
‘In addition to outright fakes, some unscrupulous sellers offer illegal “replicas” of historic coins that are not marked “COPY” as required by federal law,’ he said. ‘The Anti-Counterfeiting Educational Foundation (www.ACEFonline.org) estimates the cost to unsuspecting victims is in the millions of dollars in lost investments.’
According to the Foundation’s Director of Anti-Counterfeiting, former Texas Police Chief Doug Davis, in one recent case, an unwary buyer unsuspectingly purchased $27,000 of counterfeit one-ounce ‘silver’ coins from a pop-up ad that appeared on Facebook.
According to Weaver, collectors should beware of offers too good to be true, such as prices well under the actual market value for genuine items. ‘Remember, if you don’t know rare coins or precious metals, you’d better know your dealer,’ he added.
Members of the US-based Professional Numismatists Guild (pngdealers.org) must adhere to a strict code of ethics in the buying and selling of numismatic and bullion merchandise.