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 Replies: 13 / Views: 1,488 |
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Pillar of the Community
United States
3843 Posts |
Interesting article on marketing gimmicks utilized by some in the coin industry. Collectors willing to overpay for silver, value 'all in the eye of the beholder' http://triblive.com/business/headli...bars-companyFellow CCF Members, It is important to remind numismatic inclined relatives and newer collectors to know what they are purchasing so that they don't get taken by a slick talking telemarketer or by potentially misleading advertising. These companies make their living off of ignorance and although they may not be doing anything illegal they are certainly are not ethical in their business practices. My grandfather several years back bought into a sales pitch from one of these telemarketers and ended up ordering hundreds of dollars in "product" that would be available elsewhere for pennies on the dollar. There may be someone in your family or group of friends that may fall for the same tactics since they don't know numismatics like we do. Edited by Joe2007
04/03/2016 2:43 pm
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Pillar of the Community
United States
4211 Posts |
Yes, these magazine, telemarketers and tv coin shows prey on the uninformed.
Very sad situation for thousands of people like your Grandfather. Good idea to have that conversation.
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Rest in Peace
United States
17900 Posts |
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Valued Member
United States
424 Posts |
Very good article, the main theme seems to be that education is your best tool. I agree with moxking that this is nothing new. I was taken advantage of as a young collector by uncaring and greedy dealers. Thanks to a good father that gently guided me and a desire to know more about the coins I collected I educated myself slowly but surely. I am continuing that education (this forum is a great help) by getting as much information as I can. I find that it helps to listen to what other collectors and dealers are talking about and to ask the best questions that I can. I am far from an expert, but I feel that I can hold my own and at least appear to be semi-intelligent when I go to buy a coin.
It is a sad reality to know that companies like the one in the above article exist because people do buy their products. My mother in law is a prime example of this. When she passed away several years ago we found some of these types of products stashed away in her personal belongings. I eventually sold them and donated the proceeds, the price I received was far below the price paid. I suppose if someone found such things appealing and wanted them bad enough to pay the inflated price then that is their choice and good for them. If, however, someone is duped by misleading marketing and looses their hard earned assets as a result then shame on the scammer.
I noticed in the article that the owner of this particular business is now 74 years old. I suspect that sooner rather than later he will have to answer questions about his greed to someone that cannot be deceived.
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Pillar of the Community
 United States
3843 Posts |
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It's nothing new. Unfortunately it isn't, but recently it seems there has been a rise in these types of businesses. They are everywhere, in almost every industry, you can't turn on the TV or read the newspaper without seeing some type of gimmicky product being advertised, making absurd undeliverable promises. Maybe it is just me. Edited by Joe2007
04/03/2016 8:15 pm
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Pillar of the Community
United States
937 Posts |
So call me a hard old so and so but I do not feel sorry for anyone who falls for this type of marketing. If you have reached adulthood and cannot see the tip off to the rip off on these types of marketing then you need to learn somehow at least this is only a 400% overpayment.
Many here have paid more than 400% value for 'numismatic' items.
What's that you say?
You haven't? Never will?
REEAALLY?
Have you ever bought a one ounce copper round?
What did you pay $2 maybe $3?
For an item with no numismatic value and around 20 cents of metal value.
Oh, you just buy them for the pretty pictures and the fun?
Well, the people buying the US State bars are buying them for the pictures and their grandkids.
Same thing.
I know it makes us all feel good to jump on the moral high ground and thump our chest and scream 'unethical' at the marketers while we shed alligator tears for the poor ignorant suckers. P.T. Barnum said something about that. What was it....
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Pillar of the Community
United States
2543 Posts |
 When a relative gives me a coin for a gift, I accept it graciously, I don't ask and don't care how much they paid for it. And I forgo the lecture on intrinsic vs numismatic value vs HSN value. I have the basic "human" sympathy for people that pay too much houses that are falling down, people that pay sticker price for cars, instead of haggling and people that spend $100 out of their paycheck every week at the lotto, trying to fund their retirement with that "big win". But that is it about it. Preying on the elderly, abhorrent, string 'em up. Preying on the stupid, not so much |
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Pillar of the Community
United States
3843 Posts |
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I know it makes us all feel good to jump on the moral high ground and thump our chest and scream 'unethical' at the marketers while we shed alligator tears for the poor ignorant suckers. P.T. Barnum said something about that. What was it.... I'm a libertarian at heart so I don't feel too bad for people that have failed to do the proper due diligence on items they purchase. However I feel that it is our duty to help people educate themselves and with that goal I posted the article above. Basically in today's world, people are far too conditioned to pay the full retail price that they don't even realize that there is room for negotiating or alternative cost saving measures such as buying secondhand items. Home economics and basic personal finance aren't taught in this country anymore. Edited by Joe2007
04/06/2016 12:27 am
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Pillar of the Community
Russian Federation
5174 Posts |
In Moscow, it works in a different way: just about every newspaper stand would also offer a variety of coins (mostly assorted modern "circulating" commemoratives), for prices that are typically several times higher than what the same coins cost elsewhere (even in big coin shops). And right next to them is a bunch of copies of old coins (and, lately, more recent pattern coins), which at first glance are often only recognizable as copies because of the improbably low prices.
...And surprisingly many coin shops only offer modern commemoratives and (often NCLT only) silver. I don't really collect modern commemoratives, and I definitely don't collect NCLT silver (though the latter is more due to budget reasons than anything else).
It's becoming harder and harder to find a shop that will sell me a coin worth 10-20 cents - at least, if I don't agree to pay over a dollar. Most places just don't deal with such small stuff (which makes sense, I suppose, because it doesn't matter much for their profit).
Edited by january1may
04/06/2016 08:09 am
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Bedrock of the Community
United States
20753 Posts |
To late to complain about this method of selling. It is everywhere and it sort of works or it wouldn't be increasing so much.
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Bedrock of the Community
United States
17884 Posts |
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It's becoming harder and harder to find a shop that will sell me a coin worth 10-20 cents - at least, if I don't agree to pay over a dollar. Most places just don't deal with such small stuff (which makes sense, I suppose, because it doesn't matter much for their profit). It is understandable because it actually costs them more than the 10 - 20 cents in overhead to handle the transaction. |
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Pillar of the Community
United States
1314 Posts |
I help my local coin dealer by buying lots of cheap coins all at once. He gives me the cheap bucket and I pick out a hundred. He charges me $10. My buddy went in and picked out about the same, but failed to keep count. The owner just weighed them all and charged by the pound. It works for us.
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Pillar of the Community
Russian Federation
5174 Posts |
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I help my local coin dealer by buying lots of cheap coins all at once. He gives me the cheap bucket and I pick out a hundred. He charges me $10. That's basically most of what I consider good coin shop visits end up like. These days it's pretty much 2-3 of the same places (which aren't even necessarily open when I visit) and the occasional lucky random find somewhere else (which tends to not be there the next time I get to that place). Edited by january1may
04/06/2016 4:48 pm
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Pillar of the Community
United States
1192 Posts |
There's some QVC-like show in the early morning hours on the history channel that's ridiculous. The guy brags and brags about how he's one of the only people with physical silver in hand (yeah right). Last episode I saw he was advertising BU Peace dollars for $39.99 plus S&H (probably also high) claiming he hasn't even "had them in stock in 7-8 years. On top of that he had a huge table full of them throwing them around everywhere obviously scratching them up in the process. He also was selling 40% halves for like 8-10 each. Makes me sick to think someone buys into his scam. |
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Replies: 13 / Views: 1,488 |
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Posted 04/03/2016 6:27 pm
