From: brecher@husc8.harvard.edu (Jonathan Brecher)
Newsgroups: rec.collecting
Subject: Re: COINS: Telemarketers
Date: 17 Dec 92 10:25:04 GMT
Article-I.D.: husc8.BRECHER.92Dec17022504
Organization: Harvard Arts and Sciences Computer Services, Cambridge, MA
In-reply-to: s1dlr@IASTATE.EDU's message of 17 Dec 92 01:40:06 GMT

s1dlr@IASTATE.EDU (Daniel L Rose) writes:
>I have had a recent barrage of telephone solicitations from companies wanting
>to sell me slabbed rare gold coins.  I have purchased one such coin, but am
>wondering if this is a prudent practice.  Has anyone else out there had such
>experiences?

I'm going to go out on a limb and say that it is ALMOST ALWAYS a bad idea to
purchase coins sight-unseen from a dealer.  I'll go even further and say that
it is ALWAYS a bad idea to buy coins sight-unseen from a dealer with whom you
have had no prior interactions.

I am being generous in calling telephone solicitors "dealers."

>Another question...how well do monthly price guides actually reflect true
>market value?  The prices I see in these are quite lower than what the above
>companies give as a price.  When I inquired to them about this, they simply
>responded, "...try to buy a coin from a pricing guide."

It has been my experience that most pricing guides err on the HIGH side, but 
your experiences my vary.  The *best* pricing guide is the Coin Dealers 
Newsletter (also known as the Greysheet).  It lists both bid (what the dealers
are paying) and ask (what the dealers are getting) for just about everything, 
on a weekly or monthly basis depending on how popular that particular item is.
Mint State Morgans are listed weekly, for example; circulated Lincolns are
listed monthly.  It generates it numbers by surveying actual dealers.  Any 
dealer whose prices regularly deviate from those listed in the Greysheet should
be avoided.

>I am somewhat new to the market of gold coins and am wary of being taken.  Any
>suggestions?

Congratulations.  You have made the crucial first step of realizing that there
is the real possibility of being taken, which is more than occurs to most
people.  Without having a clue what you bought as your first gold purchase
mentioned above, I'm going to wager that you've kissed about half of your 
outlay away for good.  Chalk it up to a learning experience.

Now, take the coin you bought and go to as many coin dealers (in PERSON) as
you can find.  Check the phone book.  Explain to them that you bought this coin
through a telemarketer and you are wary of repeating the experience.  The
dealer who will take time to discuss your collecting needs and desires, the 
one who will explain all about grading to you, the one who discuss the relative
merits (AND DEFICIENCIES) of any coin he is going to sell you is the one who
deserves your business.  If you go to a store and nobody will talk to you, 
walk out.  If you go to a store and the dealer sounds like he doesn't know what
he is talking about, walk out.  If you go to a store and the dealer sounds like
a sleazeball, he probably is: walk out.  If the dealer is not an active member
of the American Numismatic Association (ANA) at the VERY LEAST, walk out.
And when you find a good dealer, stick by him like glue.  They're hard to find.

Anyone in the Massachusetts area who wants the name of an EXCELLENT dealer, 
drop me a line.  It's not appropriate for me to advertise on the net.

There you have it.  One man's opinions, but I'm sure they'll be quickly 
amended by the rest of the net. :-)

Correspondence welcome.
					jonathan brecher
					brecher@husc.harvard.edu