~You could be new to
collecting coins or a veteran collector in search of that special coin.
You come across a dealer's advertisement in a weekly issue of Coin World
or a similar publication that may hold the key to adding to your
collection.
However, in order to arrive at a competent decision, you have to know not
only what the dealer's advertisement specifically outlines, but what it
may not state in the allotted ad space. It's important to confer with the
dealer who placed the ad for clarification.
First, there are two principal varieties of dealer advertisements in hobby
publications - classified ads, which often appear in the back of a
publication, as in the case of Coin World, and display ads, which are
larger, descriptive ads that may appear with or without coin photos and
are distributed throughout the publication.
Most advertisements will include appropriate contact information such as
the name of the company, mailing address, telephone and fax numbers, maybe
an e-mail address, and if there is an online Web site, the site URL.
A dealer's advertisement may also list professional numismatic
associations, often reflected by inclusion of the respective associations'
logos, such as those for the American Numismatic Association and
Professional Numismatists Guild.
Advertisements may be placed to offer products for
sale, but many also include solicitations to buy material from collectors.
Advertisements typically not only include a description of the item being
offered, but also may include a photo. It's important to note that if a
specific coin is being offered, the photo should be of the exact coin you
will receive following payment for the particular item.
However, a dealer's advertisement may offer generic coins as singles or in
multiple lots, such as bullion coins or a Proof set. The photo used may
just be to show the design or packaging option and likely will not be the
exact item offered. It's crucial that you check with the dealer for
clarification if there is any question about the coins being depicted.
Grading and pricing
The description for a coin usually will not only include the price being
asked, but also the coin's grade. To economize on space, the grade
generally will be reflected as an abbreviation, such as F-12, meaning Fine
12; EF-45, meaning Extremely Fine 45; MS-65, for Mint State 65; and so on.
If the coin has been graded by an independent, third-party grading
service, that fact will be disclosed in the ad, often in the form of an
acronym, instead of the full company name being spelled out, i.e., NGC
MS-65, meaning the coin has been graded Mint State 65 in the opinion of
the graders at Numismatic Guaranty Corporation of America. Some dealers
offer only coins that have been graded by a third-party grading service.
Others may offer only "raw" coins, where the grade assigned is in the
opinion of the dealer. Some dealers offer both raw and certified coins.
The ads that include raw coins with a grade may state what standards were
utilized when assigning the grade, be it the use of a grading guide such
as Photograde by James Ruddy or the ANA Grading Guide, or the dealer's own
interpretation of industry standards. That interpretation may differ from
dealer to dealer, so it's important to check with the dealer for
verification and clarification.
Additional adjectival descriptions such as "premium quality" are the
opinion of the respective dealer, and premium quality in one dealer's ad
may not match that description in another dealer's advertisement. Again,
clarify such descriptors with the dealer. If there is no other indication
of the grading service, it can be assumed that the grade stated is that
assigned by the dealer; however, it's best to confirm that with the
company. Coin World advertising policy requires advertisers to state in
their ads what grading system they follow. Be sure to look for this
information.
Of course, it would be beneficial for a collector to be acquainted with
the various grading systems and guides followed in today's marketplace.
While pricing is generally straightforward - a coin's price is what it
stated in the advertisement - exceptions exist.
Some advertisements, particularly those for exceedingly rare coins where
the acquisition price is deeper than most collectors' pockets, may state
the asking price for a particular coin is "P.O.R.," or "Price on Request."
The "Price on Request" tag is often placed on such coins to attract only
those seriously interested in possibly acquiring them and having the
financial wherewithal to buy such a coin.
Perhaps the biggest disclaimer placed in many ads is that which states:
"All prices subject to change." Because of the time factor between when a
publication is printed and mailed and when it eventually reaches a
subscriber, the prices for some items may change according to demand and
market volatility. This is particularly true with bullion items whose
values often change on a daily basis based on the intrinsic value of the
metal the items contain.
Similar information may be outlined in dealer's ads soliciting to buy
numismatic material.
Dealer policies
It is crucial a buyer understand a dealer's return privileges, other
policies and guarantees before making his or her purchase. A number of
dealers will incorporate their entire list of company policies detailing
shipping and handling costs, guarantees of authenticity, grading
standards, return privileges, sales tax requirements and methods of
payment accepted.
Shipping costs may be reflected as a flat fee or as a progressive fee
based on the total cost of the order. Sometimes such fees are waived if
the total value of the order exceeds a certain level. Some ads will state
an unconditional guarantee of a coin's authenticity and allow for its
return to the dealer in such cases.
Return privileges vary between dealers and the conditions under which a
coin may be returned may differ. The dealer ad will often state the length
of time in which a collector may return the coins for a refund. But it's
necessary to determine with the dealer whether that return privilege means
for any reason.
It's also important to know whether removal from the original holder in
which the coin is shipped negates that return privilege.
It usually does, to protect the dealer from an unscrupulous buyer who
"switches" a coin and then attempts to return a different coin than the
one purchased. Dealers living in states where sales taxes are collected on
coins and other numismatic sales will state the rate in the ads and to
whom the tax applies - usually collectors who reside in the same state as
the dealer from whom they are ordering.
Dealer ads will also often include the methods of payment that they will
accept, such as credit cards and which ones, personal checks and money
orders. The ad may also specify to where the dealer may or may not be able
to ship items.
Understanding a dealer's terms will help to better ensure a smoother
transaction for all parties involved and increase the possibility of
return business for the dealer by the collector.
LETTER FROM A FARM KID
