Document your purchases: Insist upon a written receipt and a guarantee (with no time limit) of authenticity. If the seller won't issue a receipt, don't buy. Many fake coins have been sold to unsuspecting buyers who insist on "cash deals" without receipts. "If you pay me in cash and don't want a receipt, I can give you a bargain price," is a line as old as the pyramids. Many stolen, counterfeit, and overgraded coins are sold in this manner. The buyer-victim is often helpless, as these thoughts go through his mind: "I can't complain to anyone, for I paid cash using funds unreported to the Internal Revenue Service, so what can I do? Apparently, nothing."

Advice From the FTC and the ANA

The Federal Trade Commission and the American Numismatic Association issued a pamphlet titled Consumer Alert: Investing in Rare Coins. The advice given, excerpted below, makes a lot of text:

"If you intend to buy rare or bullion coins for investment, your best protection is to spend time learning about the coins you are being asked to buy. In the past, most investment gains have gone to collectors, often known as numismatists, who have taken the time to study carefully various aspects of coins, including rarity, grading, market availability, and price trends. Investment success over the years is the result of prudently acquiring coins of selected quality, proven rarity, and established numismatic desirability. Many careful buyers study coins for some time before buying even a single coin. Success can also be enhanced by researching dealers, as well as coins. If you receive any solicitation about investing in coins, keep these points in mind:

- Use common sense when evaluating any investment claims and do not rush into buying. Remember, anything that sounds too good to be true usually is not true.

- Make sure that you know the dealer's reputation... If you can, find out how long the company has been in business. Don't rely just on what a dealer's representative tells you on the phone...

- Don't be taken in by promises that the dealer will buy back your coins or that the grading is guaranteed unless you are confident that the dealer has the financial resources to stand behind the promises...