Beware Buying Coins From Home Shopping Networks

I have noticed a few coin auctions on ebay selling coins that where purchased via a TV shopping channel, or Home Shopping Networks (HSN). Some of the sellers go as far as to show the receipt, and tout the fact they bought the coins from one of the shopping channels, as if to make them more appealing or valuable, or get a bid to recoup what the sellers realizes as a bad investment in the first place.

However, these coins where purchased above their actual worth, and will not realize the price that was paid for them. So, in this guide, allow me to elaborate on this problem for one to be better informed about the HSN.

First: Unless you want to keep the coins for the future, do not buy the over hyped, and over priced coins from any of the Home Shopping Networks. Their prices for these coins is above what you can get them for on ebay.

Second: These channels offer a payment plan, and this creates a buying atmosphere that makes the price appear cheaper than it actually is. For example: One HSN offered a roll of brilliant uncirculated 1921 Morgan Dollars for a total price of $511.90. If they offered a 3x payment plan, it would cost you $170.63 for each payment. Three easy payments of $107.63 sounds better than one payment of $511.90, but it's all the same. Over-priced.

Furthermore, you can purchase a roll of BU 1921 Morgan Dollars for much less than $400, including shipping, on ebay. And these payment plans are but one of many techniques used by HSN to create a feeling that they understand you can't pay the full price up front, and since this is such a fast dwindling deal, that they will allow you to make easy payments so you don't miss-out. Don't be fooled by this psychology.

Third: The HSN know most people viewing their wares are not very knowledgable about coins. So they use this to their advantage in selling their coins; they make claims of the age, rarity, how many where melted in the past (if selling silver coins), and any details they can dig up about the particular coin type. This is done to create a mystique surrounding the coins, that makes them appear more rare and valuable then they actually are (Save yourself some grief and disappointment by purchasing a coin price guide like the The Official Red Book for United States Coins 2008 Guide). Be informed, it will save you money!

Fourth: It would seem some of the HSN are in desperation mode to relieve people of their hard earned cash, that they will have loads of modern, nickel plated, copper core coins like the kind you can still get at the bank, or find in your pocket, plated in gold, and make them sound more valuable because of this plating. Well, here is a fact about coins in general: Anytime a coins surface is altered i.e. cleaned, plated, painted, or coated with any substances by a dealer or seller, other than the US Mints doing, that coin is considered damaged, and any value above face is nothing more than hype. It's just a lie they are worth more. Period!

The only exception to the above general coin fact is coins minted from precious metals. A silver, gold or platinum coin will always have a precious metal value according to the weight of the precious metal contained therein. However, if the coin is painted, coated, plated, or cleaned, the numismatic value is greatly diminished.

I also don't buy explanation that the value of a coin is up to the buyers, which make up the market. Consider this, their is an ongoing standard for the value of US Coins, derived from coin shows, dealers, and huge auction outlet sales, and this is the best gage of any coin's or collection's market value. Not some person preaching on TV. 

Fifth: A coins value isn't just because of metal content, what they commemorate, or what another person has done to the surface of the coin. Nor is it because of the hype surrounding the sale. No, it's the rarity of the date, and this is often determined by the mintage of a particular date and mint of a coin. It's flawed logic to think an older coin is more valuable because it's old. It's just not true.

I hope some of the above has helped someone be more informed. I just know from experience that I can get better deals from ebay then any HSN's. I see it everyday. I think it's sad how the coin collecting hobby is being tainted by HSN.

If this guide helped you then please rate it. Also, read my other informative guides, and visit my website for more help buying coins safely.

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