Coin Dealer Ethics - The Nasty Practice Of Cherrypicking Pro

Coin Dealer Ethics - The Nasty Practice of Cherrypicking Proof Sets
The practice of dealers cherrypicking coins from the Proof sets is what I refer to here as a "nasty practice." It is becoming increasingly common in recent years, partly because of the ready market of ill-informed novices who buy from online auctions, and partly because of the great premiums attached to coins graded PR-70.

Most people aren't even aware that the Mint doesn't seal the Proof set packages. The plastic cases can simply be pulled apart, and the coins switched out. If the Mint would seal the Proof sets so that the cases must be cracked to access the coins, it would help put a stop to this fraud. Unfortunately, dealer abuse of Proof sets extends even further! I have had several coin dealers tell me at various times that they check the Proof sets when they come in from the Mint, and return the ones that won't grade PR-69 or 70. Since the Mint takes unconditional returns, these unscrupulous dealers keep sending the 68's back until they are satisfied. Of course, when the Mint gets back a perfectly fine looking Mint set (at naked-eye view, anyway,) it just sends them back out again to another buyer. Why shouldn't they? The sets are perfectly fine by honest standards. But who do you think ends up with these inferior sets? It's gotten to the point where I make my purchase right away when things go on sale at the Mint, since I've found that I get better quality coins that way in the long run, whatever the reason might be. Until the Mint puts a stop to dealer abuse, it is the vast overwhelming majority of average collectors who suffer.

Among the several hundred email messages I get per week, a number of them ask for help or advice in dealing with various dealer situations. Consider this question, sent to me by Rick B. (and edited a bit for clarity):

"Hello, I have a question about a legal versus ethical situation. I have dealt with my local coin dealer for some time now and was, for the most part, happy with my past purchases. However, I recently bought a 14-coin Proof set from him, and when I got home I found that every one of the Mint's coin holders had been opened. All but two of the coins appear to have been swapped out and replaced with lesser-grade Proofs. He even left a fingerprint on one of the coins!

Is he within his legal rights to do this kind of thing and not make any mention of his underhanded tactics? Should I march down there and grab him by his throat and demand one of his own personal Proof sets? Or should I run an ad in the local paper and contact the local news team? It seems to me that he is guilty of fraud. Your thoughts, please?

Thank you,
Rick B."

What do you think Rick should do? Go for the jugular, or give his dealer the benefit of the doubt based on previous experience? Or maybe something in between? Share your opinions via the "comments" link below, and next week we'll have a look at some of them.

http://coins.about.com/b/2007/09/19...oof-sets.htm