Fake coins flooding in U.S. market
Filed under: Ripoffs and Scams, Investing
At the annual meeting of the numismatic world this week attendees have had the opportunity to examine some examples of counterfeit coins from China that are reportedly flooding into the U.S. market. Five key organizations in the field have cooperatively issued a warning to collectors about these fakes.These coins reportedly appear frequently on online auction sites and at flea markets, pitched primarily to buyers who are not familiar with coin collecting and fraud detection.
One magazine estimates that more than 1 million have been sold in the U.S. already. While the Hobby Protection Act allows manufacturers to create copies of coins, it requires that the word COPY or REPLICA be clearly marked on them. The coins in question carry no such mark.
How common are replica coins? On eBay this morning, there were more than 2,000 coins such as the rare Morgan sliver dollar coin for sale marked as copies or replicas.
The words "copy" or "replica" on most were obviously stamped on after initial manufacture, causing me to wonder just how many could be out there without such a stamp. Coin World estimates that 99% of replica coins sold in this country carry no such stamp.
How can you be sure that the collectible coin you purchase is legit? The five organizations (the American Numismatic Association (ANA), the Industry Council for Tangible Assets (ICTA), Numismatic Guaranty Corporation (NGC), Professional Coin Grading Service (PCGS) and the Professional Numismatists Guild (PNG)) suggest buying from a reputable dealer (i.e., one that has been in business for some time, has a favorable stand with the Better Business Bureau, and stands behind its sale.) Collectors can call upon the services of a couple of recognized vetting companies to authenticate coins already in their possession.
According to these groups, the quality of these fakes has steadily improved. As a layman, I wouldn't know what to look for. Would you?
Like any collectible, investing in coins requires a great deal of market savvy and a dependable expert to back you up. Given the spread of fraudulent coins hitting the market, I wouldn't spend even a penny on a penny until I'd done my homework and found a merchant I could trust.
Thanks, Luxist
Note: photo of fake coin added 10/15
Reader Comments (Page 1 of 1)
10-14-2009 @ 10:12AM
1938ct said...
Carry a magnet with you at all times ,most are made from steel the chines coins are(fake)at the flea markets in Florida
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10-14-2009 @ 10:26AM
mike westman said...
These coins are a lot more clever than you think....get an appraisal from a qualified coin dealer and do not buy something that is 'too good to be true'
I see these coins in antique shows and markets...sometimes you can only tell by subtle differences in the die varieties that are inconsistent with the true strikes....morgan dollars are a tiny different each year but usually only an expert can tell......they are also faking slabs and you need to go to the web sites devoted to each grading company. Be careful.....they are in silver and gold and usually the good ones are very attractive
10-14-2009 @ 3:24PM
petroni912 said...
The Chinese have been flooding the US markets with faked antique US coins for years and what does our State Dept. do? Agree to Chinese demands that all real Chinese coins over 100 years old are the "cultural property" of the Peoples Republic of China and subject to confiscation by US customs authorities. Oh, and as for fakes, the Chinese are even faking their own antique coinage and shipping them by the thousands to the US.
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10-14-2009 @ 4:35PM
Jerome Crosson said...
The 'suckers market' in fake coins is no different than the 'autograph' fakes in sports collectibles. Probably 90 percent (or more) of autographed balls, bats, uniforms, etc. are mass produced for foolish buyers. And I don't trust those who charge a fee to 'authenticate' these treasures either. P T Barnum said it over 100 years ago - "there's a sucker born every minute".
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10-14-2009 @ 5:17PM
NATE the TRUE DEITY said...
China is a cesspool of evil and anti-Americanism. They should be nuked back into the Stone Age immediately along with China-friendly politicians. :-) Of COURSE I'm kidding! China is a swell buncha folks, yessiree Bob.
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10-14-2009 @ 7:20PM
MyKisa said...
....wow, sounds like that stuff the fed reserve issues
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10-14-2009 @ 9:53PM
ZAK said...
Chinese fakes aren't the only scams to watch out for. Tune in any coin shopping program on cable/satellite TV. Those slick con artists put used car salesmen to shame....convincing suckers that the common crap they want to unload is the biggest bargain ever. Littleton Coin (mail order) has been doing it for many years and laughing all the way to the bank.
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10-14-2009 @ 11:11PM
ray said...
this has been going on for years. in fact the trade dollar of the 1870's was a prime example. they counterfeited them like candy. in fact they made counterfeit 1871 and 1872 trade dollars. the fake one's were easy to spot. the first trade dollar was minted in 1873. someone didn't do his homework.
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10-15-2009 @ 6:57AM
db said...
Most people here think of paper when you mention counterfeit.I've seen on ebay,a coin,with a chinese junket ship on it,about the size of a silver dollar.And they are asking for hundreds for them.But the first time I saw the coins were in five gallon at flea market in Bangkok.
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