I am often asked what I collect.  I have collected things since my earliest days.  I often tell people that ‘you either have the collecting bug-or you don’t’.  I certainly have the bug.  As a child I collected baseball cards, stamps, comic books, rocks and Indian artifacts.  I still have quite a few of these items I just mentioned, but none of these items give me the pleasure I get looking at a beautiful coin.  You know what I am talking about!

When I was seven or eight a neighbor moved and left a garage full of racing magazines at the curb.  The magazines were musty and mildewed, but I filled my wagon with several loads.  At that age, how could a boy resist free hot rod magazines?  Wow, I was even able to ‘cherry pick’ the best magazines out of the boxes set out for the trash man.

Fortunately, we had a small shed in our backyard.  This was the time of the ‘Snake’ and ‘Mongoose’ drag racing rivalry.  I had dozens of magazines!  My mom wasn’t thrilled that her garden shed was overflowing with boxes of mildewed magazines.  Needless to say, it wasn’t long before my mom demanded that these ‘really cool’ magazines be put back out for the trash man in front of our house.

My father collected coins.  Although he isn’t with us anymore, I still have his Lincoln Cent and Mercury Dime collections.  He had some really cool stuff.   My dad’s sets aren’t anything really special, but they are priceless to me.  My father gave me a gift.  He inspired a love and fascination for coins that still burns within me today.

I wanted some coins of my own.  When I was eight I started accumulating coins.  I didn’t have any Whitman coin folders let alone any direction, but I loved looking at them, handling them, and researching them.  Within a couple of months I had a pretty good sized cigar box full of ‘stuff’.   There wasn’t anything special about my ‘stuff’, but I was learning.  I was learning what I liked and what I wanted to collect.  I was learning what coins were meaningful and what coins fell into the ‘stuff’ category.

Fast forward forty plus years and I am still collecting.  I have some nice slabbed U.S. coins as well as a raw Buffalo Nickel set I started in junior high school.  On a professional basis I have handled or seen most of the coins listed in The Guidebook of U.S. Coins which most of us commonly refer to as the Redbook.  Bozarth Numismatics carries an extensive inventory of PCGS and NGC graded U.S. coins and we list quite a few of them on our website, bozarthcoins.com.  I am a member of Professional Numismatists Guild as well as most major numismatic organizations.  I also write a column each month titled Rare Coin Road Warrior.  I am the Rare Coin Road Warrior.  We travel over 200 days a year to buy nice coins.  We buy and sell thousands of U.S. coins every year.

Our tastes are always evolving, but many people like me still get a charge out of a low end circulated coin that sparked that collecting desire during childhood.  For me it was Indian Cents and Buffalo Nickels.  Although I specialize in high grade U.S. coins, a bag full of circulated Indians or Buffalos can still catch my eye.  The difference between then and now is that not only do I have the choice about what I want to collect, but also I can afford to collect nicer coins.  Desirability is in the eye of the beholder, but nice coins are naturally more desirable.  A full Red Indian Cent is breathtaking.  A lustrous and fully struck BU Buffalo Nickel is truly a piece of art.  Ultimately it all comes down to what floats your boat, but if you want something meaningful you have to be discerning about what you buy and decide to collect.

Putting together a meaningful set of U.S. coins should be fun and rewarding.  The amount you spend on a set certainly has a tremendous impact on what you can collect, although I have seen some really cool sets put together over the years without breaking the bank.  In this month’s RCMR, I am going to list several sets than can be put together for a reasonable amount of money depending on the grade.  Part one of my series on ‘desirable sets’ will focus on three sets with a modest number of coins.  These sets are perfect for those collectors that don’t yet have the patience for a bigger project. 

The three sets I want to recommend to you today include:

Walking Liberty Half Short Set  1941-47

Peace Dollars 1921-35

$2.50 Indian Gold 1908-1929

I have started with these three sets because they have several factors in common.  This first is that all three sets can be completed.  All three sets have between 15 and 24 total coins.  The second factor is affordability.  Depending on the grade you can put together all three sets on a modest budget over time.  The third factor is desirability.  People love Walkers because they are one of the most gorgeous U.S coins ever produced.  People love Peace Dollars because they are cartwheels (dollars) and display an art deco design that is so unusual today.  People love $2.50 Indians because they are gold and they are one of only two series produced with the encused design.  The coins in these three sets are always in demand because people love them.

The Walking Liberty Half Dollar Short set comprises coins from 1941 through 1947 with a total of 20 coins.  There are Philadelphia, Denver, and San Francisco mint issues for all years except 1947 when halves were not produced at San Francisco.  The set is very affordable in MS64, affordable in MS65, but becomes more difficult in MS66.  MS67 sets are very expensive with a couple of coins that bring over five figures.  I recommend the set in MS64 through MS66 depending on your budget.

Peace Dollars were made from 1921 through 1935 sporadically at all three mints.  The total number of coins in the set is 24.  Peace Dollars are affordable in MS63 and MS64, but are very expensive in MS65 and MS66.  Putting together a well struck and brilliant set of Peace Dollars in any grade is a challenge, but they are available if you are willing to put in the time looking for them.  I recommend the set in MS64 and MS65 depending on your budget although I have seen some really nice MS63 sets.

The $2.50 Indian Quarter Eagle Gold set is one of my personal favorites.  Not only are these coins 90% gold, but the total set comprises only 15 pieces.  You can complete the set for a modest amount of money in MS62 and under, but the 1911-D issue is several thousand dollars in even circulated condition.  MS63, MS64, and MS65 sets are significantly more expensive and challenging, but you can always upgrade later.

If you are interested in putting together a meaningful set of U.S. coins please contact me through our contact page on our website, bozarthcoins.com or email me at bozarthcoins@att.net.  Best Regards, Vic Bozarth-The Rare Coin Road Warrior.

Related posts:

1. What should I collect? Tips for building a meaningful set of U.S. Coins. Part Two.
2. How To Collect Charlotte Gold Coins
3. Deciding What Coins to Collect

In two recent cases, “Howard” in Mississippi wired $20,000 several months ago to a California coin and bullion dealer to purchase gold coins, and “Richard” in Virginia sent $150,000 to the same dealer.  With the recent run-up in bullion prices they both would have made a nice profit, except they still have not received any gold from the dealer.  Howard laments, “All I’ve gotten is the run-around.”

“If you don’t know gold coins, you’d better know your gold coin dealer,” is the advice to collectors and investors from three nonprofit organizations: the American Numismatic Association (www.money.org), the Industry Council for Tangible Assets (www.ictaonline.org) and the Professional Numismatists Guild (www.pngdealers.com).

“There are many reputable, professional numismatists in the United States,” the three organizations emphasize.  “Before you make a purchase or offer something for sale, do your homework and check the dealer’s credentials.  For example, contact the Better Business Bureau to check the company’s BBB rating or if the company is even accredited by the BBB.”

A listing of Better Business Bureau accredited and rated companies nationwide can be found online at www.bbb.org.

The dealer that received the combined $170,000 in unfulfilled purchase orders from “Howard” and “Richard” had an “F” rating from the BBB.

Typically, dealers who are unresponsive to reasonable requests from customers seeking resolution of disputes are not involved in the mainstream of numismatics, but may advertise in prominent, mainstream news media.

Based on the experiences of the ANA, ICTA and PNG, and in consultation with law enforcement agencies, the three organizations suggest that buyers or sellers of gold coins who encounter problems consider taking these actions:

• Make copies of all correspondence, receipts and transactions and if possible have copies of advertisements or the dates and times ads were broadcast.
• Always contact the company directly to try to resolve the dispute.  Ask for the manager or company owner.
• Take thorough notes of your conversation(s).

If the problem is still not resolved after a reasonable amount of time, contact the Customer Service and/or Advertising Departments of the news media organization(s) that published or broadcast the company’s advertisements and let them know about the problems.

The ANA, ICTA and PNG advise: “It’s your money, so do your homework before placing an order, and if there is a problem then don’t just sit back and wait.  Be persistent in your efforts to resolve the dispute. Follow up with the company you did business with and the agencies where you’ve filed a complaint.  You may also want to consult with an attorney.”

Depending on the specific circumstances of the situation, one or more of these agencies also may be able to assist in the resolution of the dispute.

Numismatic Consumer Alliance, Inc. (www.StopCoinFraud.org) helps consumers secure relief for allegedly fraudulent and illegal conduct within the coin industry. Address: P.O. Box 144, Bedminster, New Jersey 07921.  Phone: (908) 781-7947.

Numismatic Crime Information Center (www.NumismaticCrimes.org) can help with investigative resources, information and direction for customers, dealers and law enforcement agencies.  Address: P.O. Box 14080, Arlington, Texas 76094.  Phone: (817) 723-7231.

Credit Card Companies if the purchase in dispute was made with a credit card within the past six months.  Call the Customer Service number on the credit card and inquire about doing a charge back for undelivered merchandise.

Local Police Department or Sheriff’s Department, the local District Attorney or County Prosecutor and the State Attorney General in the city, county and/or state in which you live or in which the dealer has a place of business.  Contact the law enforcement agencies in the city, county or state where the transaction took place.  Phone numbers can be found in the Government pages of local phone books or online.  A convenient listing of contact information for every state attorney general can be found on the National Association of Attorneys General website, www.naag.org.

Federal Bureau of Investigation or Secret Service depending on the dollar amount of the transaction and whether interstate commerce or counterfeit coins were involved in the transaction.  Phone numbers for the nearest FBI and Secret Service offices can be found in the Government pages of local telephone books.

United States Postal Service may be able to provide assistance if the transaction occurred using the U.S. Mail.  Go to your main post office and ask to talk with the local Postmaster or Postal Inspector.

American Numismatic Association (www.money.org) if the dealers involved in the dispute are ANA members and the dispute involves alleged violation of the ANA Code of Ethics, the association offers complaint mediation services for a fee based on the dollar value of the transaction.  Address: 818 N. Cascade Ave., Colorado Springs, Colorado 80903.  Phone: (800) 367-9723.

Professional Numismatists Guild (www.PNGdealers.com) if the dealers in question are PNG members they must adhere to the Guild’s Code of Ethics, support the PNG Collector’s Bill of Rights and must agree to binding arbitration to resolve any disputes involving numismatic merchandise.  Address: 3950 Concordia Lane, Fallbrook, California 92028.  Phone: (760) 728-1300.

Federal Trade Commission Consumer Sentinel Network (www.FTC.gov); however, don’t expect an immediate response.  The FTC usually responds when a significant number of serious complaints accumulate against a company, but it is still good to alert the FTC about unresolved disputes so they can be added to the agency’s files. Information about filing a complaint can be found online at www.consumeraction.gov.  Phone: (877) 382-4357.

Additional consumer protection information from the American Numismatic Association about “How to Buy Gold & Silver” can be found online at http://www.money.org/Content/NavigationMenu/ExploretheWorldofMoney/BuyingGold/default.htm, and the Professional Numismatists Guild offers consumer education information about “Three Things Gold Buyers Must Know First” online at http://www.pngdealers.com/item.php?item_id=129&category_id=2.

Related posts:

1. California Gold Dealer, Superior Gold Group LLC is seized, assets frozen
2. Another Gold Rush for Wilmington Depository
3. Consumer Alert: PNG Members Assist Investigations of Traveling “Hotel” Gold Buyers

Professional Numismatists Guild (PNG) member-dealers have been assisting the news media in their continuing investigations of several gold-buying companies that move from community to community across the United States. One of the buyers offered only $60 — significantly less than even its bullion melt value — for a 1925-D Indian Head $2.50 gold coin certified NGC MS66 and valued at $10,000 by PNG experts.

” Despite prominent advertising that may proclaim, ‘NO ONE PAYS MORE,’ some traveling gold buyers are offering only pennies on the dollar for rare coins,” said Robert Brueggeman, PNG Executive Director.

“Recent newspaper and television investigations in five states conducted with the assistance of Professional Numismatist Guild member-dealers revealed that some buyers who set up for a few days in a hotel, then move on to another town, sometimes offered as little as three percent of the actual value of certified rare coins they were offered. You may see bigger promises than payouts.”

The initial investigations were conducted by The Examiner newspaper in Beaumont, Texas of several traveling gold buying companies at hotels in Alabama, Georgia, Louisiana, Mississippi and Texas. The subsequent stories revealed that “promises of big money weren’t really true, and in many encounters the money offered was nearly a fourth or less of the actual value of the items being presented for sale,” according to Jerry Jordan, the award-winning News Editor of The Examiner.

Based on the results of the investigative reporting, PNG officials issued a brief consumer advisory to the general public.

“Results reported in those stories are not necessarily indicative of all hotel coin buyers across the country, but we encourage people who want to sell gold or silver to prepare in advance: know beforehand what you are selling and get more than one offer, preferably in writing. Consult with local merchants in your community who may not have flashy advertising but who may offer you considerably more money for your coins and jewelry. Members of the Professional Numismatists Guild must adhere to a strict Code of Ethics in the buying and selling of numismatic merchandise, and must refrain from buying at unreasonable prices,” advised Brueggeman.

“If you don’t know coins, you’d better know your coin buyer.”

Jordan discovered some hotel buyers operate under multiple assumed names, have lawsuits filed against them and are targeting areas of the country undergoing economic distress. The investigations also revealed another potential problem for people who want to sell gold jewelry.

“The scales used by some itinerant buyers to weigh gold jewelry may not even be lawfully registered with government agencies. That could result in inaccurate weight measurements to your detriment when you’re selling gold jewelry for its melt value,” said Brueggeman.

During the investigations, PNG member-dealers provided Jordan with gold and silver coins valued at more than $43,000 to offer to traveling gold buying companies, and assisted the newspaper with expert opinions on what their own companies would actually pay for those items.

The newspaper’s stories reported that some traveling gold buyers lure people with ads promising they’ll pay collector premiums for better dates and better grades of coins, but news media personnel weren’t even offered the scrap value for many high-grade, rate-date certified gold coins. The offers they received on most gold jewelry were way below the melt value.

Editor Jordan reported that at one hotel location, “The Examiner brought in its entire supply of coins, scrap gold and bullion — valued at more than $43,000 — and was offered $11,600, or about 25 cents on the dollar.” At another location, hotel buyers offered only $680 for $25,580 worth of certified coins; only about three percent of their actual, easily determined value.

Jay Sheppard of the Better Business Bureau of Southeast Texas warned,

“I consider it a red flag when these companies pay cash and refuse to offer transaction receipts.”

Here are some examples of the numismatic items presented to three different companies during the investigation, the offers received and the actual market value of the items according to the participating PNG member-dealers on the same day the offers were made.

Examples of the Offers vs Value on some coins….

• 1954 proof set – Offer $5. This item is valued at $75

• 2008 proof Silver Eagle – Offer $10. This item is valued at$53

• 1904 $20 Liberty NGC MS63 – Offer $900. This item is valued at$1,700

• 1905 $20 Liberty NGC MS63 – Offer $900. This item is valued at$11,600

• 1925-D $2.50 NGC MS62 – Offer $60. This item is valued at$460

• 1925-D $2.50 NGC MS66 – Offer $60. This item is valued at$10,000

• 1909 $5 NGCMS63 – Offer $250. This item is valued at$1,600

• 1909 $5 NGC MS65 – Offer $250. This item is valued at$13,000

Better numismatic dates and grades did not factor in the offers to purchase even though some hotel buyers referred to price guide books or looked up information on their laptop computers before making an offer.

Editor Jordan also reported that some hotel buyers are targeting areas of the country undergoing economic distress and do not have a brick and mortar storefront presence as required by some government agencies. In addition, some traveling buyers do advertising encouraging people to mail in their gold to sell.

Founded in 1955, the PNG has a strict Code of Ethics for its members in the buying and selling of numismatic items. For additional information and the locations of PNG member-dealers, call (760) 728-1300 or visit online at www.PNGdealers.com.

The Examiner newspaper stories can be viewed online: “Treasure Hunters or Gold Diggers” (January 14, 2010) at http://www.theexaminer.com/main.asp?Search=1&ArticleID=3679&SectionID=1&SubSectionID=61&S=1;

“Illegal” (March 19, 2010) at http://www.theexaminer.com/main.asp?Search=1&ArticleID=3784&SectionID=1&SubSectionID=61&S=1;

and “Update: Seller Beware” (April 6, 2010) at http://www.theexaminer.com/main.asp?Search=1&ArticleID=3804&SectionID=1&SubSectionID=61&S=1.

KBTV Fox 4 television in Beaumont also did two stories about investigations in that community in conjunction with News Editor Jerry Jordan of The Examiner. You can view videos of the Fox 4 “Seller Beware” stories online at these web sites: “Seller Beware: The Great Treasure Hunt Un(der)covered Part One” (March 11, 2010) at http://setxhomepage.com/search-fulltext?&nxd_id=86534;

and “Seller Beware: The Great Treasure Hunt Un(der)covered Part Two” (March 12, 2010) at http://setxhomepage.com/search-fulltext?&nxd_id=86684.

Related posts:

1. As Gold Price Rises, Experts Issue Consumer Caution Advisory
2. New Website Targets Rare Coin and Paper Money Investigations
3. PNG President Urges Unified Consumer Protection

The PCGS Secure Plus process uses laser scanning to help detect coins that have been artificially enhanced since their last certification, combat “gradeflation” and excessive resubmissions of the same coins, and can also be used to help identify recovered stolen coins. Additionally, PCGS expert graders can now designate deserving, superior-quality coins as “Plus” within their respective grades, an important distinction when there are big differences in value between one grade point and the next.

Announcement of the unprecedented breakthrough was made by PCGS executives on the opening day at the American Numismatic Association National Money Show™ in Fort Worth, Texas. They explained how the new process of digitally scanning each coin to capture its distinctive characteristics is being integrated into the PCGS grading system and how it helps resolve important issues in the rare coin marketplace by offering:

• Increased precision and consistency in grading
• Improved detection of altered coins
• Less chance of “gradeflation”
• More likely recovery if a PCGS Secure Plus coin is stolen
• Increased value of high-end coins within each grade

Developed after years of extensive software and hardware development and testing in partnership with Coinsecure, Inc. of Palo Alto, California, the PCGS Secure Plus service digitally captures a unique “fingerprint” of each coin that is then entered into a permanent data base.

PCGS Secure Plus will introduce a new level of confidence and security in the coin collecting market” said PCGS President Don Willis. “We believe that PCGS Secure Plus addresses several of the leading issues affecting the industry today. PCGS Secure Plus is a patent-pending process wherein a coin is laser scanned, imaged and registered in a permanent data base. Every coin has its own identifying characteristics. Coins are like snowflakes at the micron level; they are very different from each other. If a coin has been previously registered in our system it will be identified whenever it’s again scanned by us, so duplication of coin information will be eliminated. As a result, population reports, condition census and other potentially distorted information will be much more accurate for PCGS Secure Plus coins.”

“The process also can help detect if a previously registered coin has been artificially toned, dipped or processed in some other way in an effort to get a higher grade. Not since PCGS introduced encapsulated third-party grading in 1986 has such an important step been taken to protect the consumer. We believe PCGS Secure Plus will totally revolutionize the coin grading business,” said Willis.

“Thousands of tests of the current PCGS Secure Plus system now have been performed, and not once did a previously registered coin go unmatched and not once did we get a false-positive match. Extensive testing was done by many individuals in an attempt to break this system, including all the gimmicks and coin altering processes PCGS has seen over the years, such as foreign material applied to a coin’s surface. We even tested coins that had been scratched and marked up. All of them were recognized and matched with the PCGS Secure Plus system. No one has been able to beat this system,” Willis stated.

“The evolution of the rare coin marketplace has produced significant price gaps between some coins that are only one grade point apart. For example, the PCGS Price Guide lists 1880-O Morgan dollars as $2,000 graded PCGS MS64 and $25,000 in MS65. PCGS Secure Plus will more accurately reflect the quality and market value of coins designated as ‘Plus’ and meeting our strict requirements,” said Hall.

The Plus designation will be available only in conjunction with PCGS Secure Plus service and in grades XF45 to MS68, except for MS60 and MS61.

Another benefit for the hobby is that if a PCGS Secure Plus-certified coin is ever lost or stolen and subsequently resubmitted to PCGS, it can be automatically identified and the recovery process will begin for the rightful owner.

PCGS Secure Plus is being offered as a separate, new service. All existing PCGS services will continue to be offered without change except for Rarities and Ultra Rarities which now will only be offered with the PCGS Secure Plus service. Initially, PCGS Secure Plus will be offered for Walkthru, Express and Gold Express services only for raw coins, re-grades and re-holders.

“When PCGS opened in February 1986, we ‘flicked a switch’ and changed the rare coin market. We’ve just flicked another switch, and this changes everything. Imagine a world without coin doctoring. Imagine a world without ‘gradeflation.’ This is the right thing to do,” said Hall.

“This is an exceptional development,” declared well-known numismatic consumer advocate Scott Travers, author of the award-winning Coin Collectors Survival Manual and a paid consultant to PCGS. “PCGS is going to be acknowledging what most of us have been trying to increase awareness of for years by recognizing coins that are at the high end of the spectrum. Consumers are now going to have this singularly valuable piece of information available to guide them in buying and selling coins.”

For additional information, contact PCGS Customer Service at (800) 447-8848, or visit at www.PCGS.com.

Related posts:

1. Industry Leaders Comment on New PCGS Secure + Coin Grading Announcement
2. PCGS Announces Coin Sniffer™ Process Enhancement to Secure Plus Coin Grading
3. PCGS Hires a New Grader and Some Thoughts on Third-Party Grading

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A basic lesson will help you always catch fakes, like this 1895-O Morgan Dollar, which could be deceptive to many.

In high school history class, a student asks his teacher, “Do I need to memorize dates for tomorrow’s test?”

The teacher replies, “No dates.”

Encouraged, the young student goes home and studies hard, following the teacher’s instruction. The next day he fails the test. Miserably.

Of course, the teacher had not told the student there would be NO dates on the test, but that he should KNOW dates. For aspiring counterfeit detectors, this instruction should be made even more clear: K-N-O-W dates!

Dates are very important areas to examine because they are unique to a particular coinage issues. The position, size and shape of the date should be the first elements examined when attempting to determine authenticity (unless better diagnostics are known for that coin). Often a misshapen or wayward digit is confirmation that something is amiss.

While this advice might seem to apply primarily to altered date coins, it is just as important for die-struck counterfeits. This 1895-O Morgan Dollar is a die-struck counterfeit recently made in China. It is of the correct weight and metal composition of an authentic coin. It is made from transfer dies and this coin would deceive many collectors.

By looking at the date under magnification, the coin immediately falls apart. Raised blobs of metal can be seen surrounding the 5, most prominently at 5:00 and 7:00. The metal flow is also suspiciously smoother in this area, dissimilar from the texture seen around the other digits. If you knew nothing else about this coin, those markers alone should scream, “not genuine.”

The counterfeiter made transfer dies for this coin by using a model coin from the 1890s, replacing the last digit with a 5. While this reveals the counterfeiter’s methods, it also tells us something else. Coins of every date and mintmark combination can be made in this same fashion. It’s therefore important to remember that this rule always applies: “Know dates!”

Related posts:

1. Counterfeit Detection: Proof 1885 Liberty Nickel
2. ANA Counterfeit Detection Seminar Offered April 22 at MSNS Spring Convention
3. Important Announcement: Counterfeit NGC Holders