They are known by various descriptions—“Signature Series” bullion, “certified modern bullion,” “semi-numismatics”—to name a few. Many high profile coin fraud dealers seem to have their own in-house “Signature Series” bullion coins signed/certified by politicians, mint design “all-stars,” or other celebrities. Some of the more recognizable “certified modern bullion” celebrity signatories are Anna Cabral, Edmund C. Moy, and John Mercanti, but they are legion.
These bullion coins are autographed, certified, and packaged, and then marketed (and “marked up” in price) as combining the characteristics of both bullion coins and numismatic coins. They are sold at higher premiums based upon purported limited mintage (manufactured scarcity/rarity) and alleged attractiveness to both investors and collectors because they are supposed to derive their value partially from their numismatic value (collectability) and partially from their bullion value (precious metal content).
Whether collecting “Signature Series” bullion coins is a wise investment decision has been called into question by the Professional Numismatists Guild (PNG). In a 2019 press article, PNG warned persons purchasing modern precious metal coins “strictly for their silver, gold or platinum content” to “beware of significantly overpaying simply because the coins may be housed in fancy holders or accompanied by autographs of celebrities of the coins’ designers.”
Barry Stuppler, former President of PNG, warns collectors that “you could pay more than twice the value of the precious metal content of the coin” by purchasing semi-numismatics and noted that “virtually every specialty label coin we’ve seen was offered at a price 200 to 1000 percent higher than a comparable bullion coin in the same condition without signature or specially designed labels.” He also noted that while non-institutional buyers are paying such premiums for the signed/certified bullion coins, “when an investor sells the coins with special labels they might only get a 5 to 10 percent premium.” That is 5 to 10 percent over spot value, not over the price paid which is marked up hundreds of percentage points over spot price. This results in a substantial loss of investment.
Unscrupulous coin fraud dealers will take advantage of unsophisticated consumers and market and misrepresent “Signature Series” bullion coins as a premium investment vehicle to their own financial benefit and the buyer’s financial detriment. The coin dealer will claim “buyer’s remorse” and smile all the way to the bank.
The entire article, “Beware of Grossly Overpriced Gold Coins, Cautions Professional Numismatists Build,” is available online at https://markets.businessinsider.com/ news/stocks/beware-of-grossly-overpriced-gold-coins-cautions-professional-numismatists-guild-1028234951.
If you believe that you, or someone you know, may have been the victim of coin fraud, there is more information available at the Coin Fraud Lawyers website (www.coinfraud.com). Or call 409-880-9714 right now to speak to a coin fraud lawyer for a free consultation.
