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China, Counterfeit US Coins & Holders. Best Strategy Moving Forward.

Posted in coin condition, counterfeit coins from China, knowledge is power, large cents, Uncategorized, tagged , , , , , , , , , , , , , , , , , , , , , , , , on May 19, 2009| Leave a Comment »

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There are reportedly a hundred mints in China rapidly producing counterfeit United States coins that are  infiltrating our borders hoping to find a home with some unsuspecting  US collector.  Most of these coins are coming from the two southern Chinese provinces of Fujian and Guangdong.  This problem has been going at an ever increasing rate since the end of 2007 and earlier.  However, now that the Chinese have technology and minting presses from the US,  this problem will force us to a “New Educational Level” to prevent and protect collectors and dealers from buying these worthless reproductions of our historic numismatic past. 

The Chinese are busy making everything from Colonials, Half Cents, Large Cents, Indian Head Cents, Buffalo Nickels, Standing Liberty Quarters, Morgan, Peace and Trade Dollars, all dominations of Gold coins and paper money.  Their technology is rapidly is improving rapidly improving as well as mastering the color of our early copper coins. 

One of their newest entries is the production of “error coins”,  an area in which they know very well the passion US collectors have for these unique items.   And to be honest, they are getting better and better at producing these counterfeits.  The machinery they are using is becoming, if not already, state of the art.  Their dies are improving, the strikes are improving and with copper coins, they are moving rapidly to getting the color right.

To make life a little more complicated, the Chinese have now introduced counterfeit PCGS and NGC holders into our marketplace.  At present, it appears that these counterfeit holders, as you would expect, contain counterfeit coins, however, that is likely to change in the near future if it hasn’t already.  At some point they will be putting authentic over-graded coins in these holders.  For example, an AU-50 1909 S VDB in a PCGS or NGC holder graded MS 63.  Or just as easily it could be a Fine 1877 Indian Head Cent graded EF 40 or EF 45.  The point is that there is a lot of money to be made by using this combination of authentic coin and counterfeit holder.  Grade inflation is already a major problem as we continue to evolve within the arena of market grading.

I guess these events reminds us all that it wise to buy the coin and not the holder…..buy the book,  then the coin.  In this case, buy a good book on  detecting counterfeit coins (see book list below).  Our best protection regarding these commonly counterfeit rarities is to know the die characteristic of the  authentic coin and not worry so much about what the counterfeit coin looks like.  If you are looking at a 1909 S VDB Lincoln and the “S” mint mark does not have the characteristics of the authentic “S”…..you most likely have a bad coin.  There are exceptions.  Some counterfeiters have been able to duplicate the “S” mint mark on the 1909 S VDB Lincoln so secondary characteristics of the die are required.  Don’t depend on one particular die characteristic but look at two or three to be conclusive.   Know what the real coin looks like  and have a good reference library and you will be able to discard as many counterfeits as they through your way.   Just remember, a second opinion is always important when dealing with counterfeits.  Fine a dealer you can work with and that you have confidence in to help you. 

The best people to help you are people that have had extensive interactions (on site classes) with the ANA (Colorado Springs), the ANS (New York City), Professional Numismatic Guild (PNG), NLG (Numismatic Literary Guild), professional grading services such as PCGS, NGC and ANACS.  These are the people with the greatest amount of experience that can help you the most.

Upcoming educational events on the topic of Chinese Counterfeit coins.

Facing the Chinese Counterfeiting Threat – August 4, 9 a.m.-1 p.m.; August 5, 1-5 p.m. Counterfeit coins and slabs made in the People’s Republic of China are pouring into the marketplace in unprecedented numbers. Access to Western technology means that the counterfeiters are able to produce high-quality fakes. In this two-day seminar, learn to protect yourself by becoming a smart online customer, and learn how to use simple, inexpensive tools to authenticate your own coins. Instructors: Susan Headley, numismatic journalist and counterfeit expert; Beth Deisher, editor, Coin World; and Dr. Gregory Dubay, noted Chinese counterfeit expert.
ANA Member Price: $149 through July 1; $169 after.

Links to Coin World articles describing the Chinese Counterfeit activity can be found on the Web through Google. 

THE FOLLOWING LIST OF BOOKS ON COUNTERFEIT DETECTION WILL HELP YOU GET STARTED WITH A NICE LIBRARY FOR DEALING WITH THIS PROBLEM.

 1.  Fivaz, Bill; United States Gold.  Counterfeit Detection Guide.     Whitman Publishing , LLC, 3101 Clairmont Road, Suite C, Atlanta, GA  30329. (2005)

2.  Official Guide to Coin Grading and Counterfeit Detection. Professional Coin Grading Service (PCGS) Staff.  Second Edition.  (2004)

3.  Larson, Charles M.; Numismatic Forgery.  (2004)

4.  Fivaz, Bill; Counterfeit Detection Guide.  (2001)

5.  Counterfeit Detection: A Reprint from the Numismatist, Vol I.  American Numismatic Association, Box 2366,  Colorado Springs, CO 80901. (1983)

6.  Counterfeit Detection: A Reprint from the Numismatist, Vol II.  American Numismatic Association, 818 North Cascade Avenue, Colorado Springs, CO 80903. (1988)

7.  Hancock, Virgil; Spanbauer, Larry; Standard Catalog of Counterfeit and Altered United States Coins. Sanford J. Durst, Numismatic Publications, New York, N.Y. (1979)

8.  Devine, John; Detecting Counterfeit Gold Coins, Book II; Heigh-Ho Printing Co., 3477 Old Conejo Road C-7, Newbury Park, CA 91320. (1977; Sixteenth Printing in 1980)

9.  Taxay, Don; Counterfeit & Unofficial Misstruck U.S. Coins.  (1976)

10. Devine, John; Detecting Counterfeit Coins, Book I; Heigh-Ho Printing Co., 3477 Old Conejo Road, Newbury Park, CA 91320. (1975)

11. Dieffenbacher, Alfred; Counterfeit Gold Coins, Nineteenth and Twentieth Centuries (Fully Illustrated); Dieffenbackher Coin BTD.  Montreal, Canada.  (1963)

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COLLECTING AND INVESTING IN COINS IS SYNERGISTIC!

Posted in coin investments, Gammill Numismatics, knowledge is power, numismatics, tagged , , , , , , , , , , , , , , on August 28, 2008| Leave a Comment »

Over the years, as an avid collector of all things related to numismatics, I have talked to many colleagues who accurately regard themselves as true, “bona fide collectors”.  That is to say, they have absolutely no interest in discussing their collection as an investment instrument under any circumstance.  Well almost any circumstance.  They will rock back on their rears when they start talking about how much their AU-50 1909 S VDB cost them back in 1957.  Yes, they will remind you that they have made some good purchases over the years.  However, they most likely will say they have no desire or interest in “investment grade or investment quality coins” right after telling you about that very nice Lincoln cent.  They are investors aren’t they?  They say they are collectors and collect for the pure enjoyment of participating in the hobby.  They often remind you that it’s the hunt that drives them year after year, looking for that one special coin(s), book or piece of paper money to add to their collection…and they are dead serious and proud of that pursuit.  However, aren’t these collectors also investors by the simplest of definitions?  They have invested in America’s future by investing (collecting) in her past!

 

I know a number of collectors that fall under the definition of “bona fide collector” and they are some of the most knowledgeable and enjoyable people you will ever find when it comes to discussing collecting or any other topic as far as that goes.  I guess the simple point they make is that making money is not the most important aspect of their collecting activities.  Money has not been the driving force that has kept their interest in collecting alive over the many decades of what they consider a very nice leisure activity.  In addition to being quite knowledgeable about the history of the coin series they find most interesting, in general, they are always willing to share their collection with you, seek your opinion, giving new and young collectors sound advice and in the end, everyone gains an abundance of new knowledge and new friends.

 

If you talk to these people long enough you will generally find that they have no plans of ever selling their collection.  Talk to them a little longer and you will find out why they will never sale.  Very often, they are going to pass their collection on to future family generations.  I know one gentleman that has assembled five complete sets of Indian Head Cents in EF to MS 65.  They will go to his five grandchildren.  I have seen three of these sets and they are truly amazing.  Beautifully matched in color and quality and just about as problem free as you can imagine.  These sets have been assembled over a forty year period.  A truly remarkable task has been accomplished by this gentleman, reflecting on his own personal character as well as his dedication to pass not only his interests on to his children and future generations, but also the history of our country.

 

A second gentleman I met many years ago has put together three complete sets of Indian Head Cents for his grandkids.  To add to the hunt, he is attempting to upgraded each coin in every set to “four full diamonds”.  What a goal.  His sets are in the grade range of EF to AU 58.  Another wonderful accomplishment and he knows hel’ll never get full diamonds on all the coins, but he keeps looking.. 

 

I know individuals who have inherited multiple Lincoln Cent and Buffalo Nickel collections from a previous generation.  These people are not collectors but continue to hold the collections in hopes of future generations taking interest in a hobby enjoyed by a past generation.  These are remarkable coins that are properly stored and cared for and just waiting for their next custodian. 

 

I could go on but I think the point has been made.  These collectors have had a goal to leave something special to their families that gave them great enjoyment and satisfaction over many years.  They didn’t call themselves investors, but if fact they were.  All of these sets have greatly appreciated over the years.  It doesn’t matter who reaps the benefits of the financial gains, these gentleman have had a great experience collecting and assembling something they love and because they stuck with quality purchases, and made the key and semi-date purchases, they indeed have made a handsome investment over time. 

 

Any collection that has been assembled by a “bona fide collector”, as they might call themselves, stressing strike, luster and eye appeal, have done very well over the decades.  You don’t have to spend a million dollars, or make a million dollars on the sale of a collection to be both an astute collector as well as an investor. 

 

Collecting and investing in coins is synergistic!

 

COLLECT OR INVEST IN AMERICA’S FUTURE BY COLLECTING AND/OR INVESTING IN HER PAST!  IT IS TRULY AN AMAZING STORY FOR ALL GENERATIONS.

 

 

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A Coin is Worth More Than a Coin…When it is RARE and in DEMAND!

Posted in coin condition, Gammill Numismatics, knowledge is power, numismatics, tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on August 1, 2008| Leave a Comment »

Coin collectors, old and new, as well as many non-collectors, often wonder these days whether the coins in their pocket (or modest collection) are worth more than their face or bullion value.  The following are basic factors that in general influence a coins value.  No rocket science here, just common sense.

How rare is that Lincoln cent I just found in the parking lot?  It’s for sure old because it has the wheat stalks on the reverse and those haven’t been around for almost 50 years.  Ah, my ship has landed….or has it!

People generally realize that the rarer a coin the higher the coins value. Of course the condition of the coin is most often also very important.  The exception to this would be a unique coin, i.e., one of a kind in which case condition takes a back seat.  Additionally, the common belief that the older the coin the greater its value is not always true.  The bottom line is 1) condition, 2) mintage (number produced), and 3) demand.  These are “in general” pretty good criteria to follow when you start to evaluate that parking lot find.  

Is the coin in good condition?  The better the condition the greater the value and thus the more it will bring in the marketplace.   The condition (strike and luster) and eye appeal of a coin contribute heavily to a coins value.  A coin that is in mint state condition could actually be worth a hundred times the same coin in a lower circulated grade.   If you don’t know how to grade coins, find a trustworthly dealer that can help you.  You also have the choice of sending it to a third party grading service such as PCGS or NGC.   But remember, knowledge is power and you want to keep the “knowledge card” in your hand.  The ANA sponsors excellent grading classes during the Summer Seminar Series each July.  The instructors represent the best in the industry.  Inaddition, the way the grading is taught keeps you in tune with the market and thus the ever changing commerical demands of the market.

If the coin is in nice condition the next question is, how many were made.  Is the coin rare or just a common date (which might be the reason you found it where you did) within the series.  Pick up a “RED BOOK” at you local bookstore, or just google “US Coin Mintage” and find out how many were made.  Low mintage usually means a higher price.  If you find a coin with a mintage less that 500,000 you probably  have a very interesting coin in your possession.  However, if they made 50,000,000 million, well, you probably don’t have anything of great value. 

Supply and demand!  In those series that are heavily collected, Indian Head Cents, Lincoln cents, Buffalo Nickels, Liberty Head Dimes, the key dates are always in demand….there just aren’t enough of the low mintage coins to go around and the prices stay high.  However, higher mintage issues cost a fraction of these other key dates and this is even true of the mint state issues. 

What about the idea of age, how old is the coin.  Is an older coin more valuable that a relatively modern issue?  No, just because a coin was made in the 16th century does not mean it is more valuable than a coin made in say 1972 (Lincoln double die).  It goes back to rarity, demand and availability.  There are many 16th century coins that can be purchased for less than a hundred dollars, or even fifty dollars.  There were just a lot of them made and they have surived over time. 

Once again, how many are available and what is the demand.  Those are the two big questions for those of us in the world of collecting.

A Coin is Worth More Than a Coin…When it is RARE and in DEMAND!

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