Coin World Also Sounds Fake Alarm

Proxiblog warned online auctioneers about being on the alert for an onslaught of counterfeit coins in light of eBay’s new policy banning copies and replicas of coins from their worldwide site. Here is an example of a counterfeit $3 gold piece purchased on the Proxibid portal. Now the leading numismatic magazine also has sounded an alarm.

Writing in the free online edition, expert numismatist and appraiser Steve Roach warns that counterfeit coins and coin doctoring–altering coins via artificial color, whizzing or other methods–“have the potential to harm the coin market in the long term if not properly addressed.”

Roach believes the eBay decision will impact the steady stream of counterfeit coins into the United States because those fakes have to go somewhere. Proxiblog believes online portals like Proxibid may be likely targets. If you’re an auctioneer, that means you.

“Now that eBay has placed restrictions on the sale of replicas, a major supply point into the United States has been cut off,” Roach writes.

You can read his report by clicking here.

Proxiblog has recommended methods to detect counterfeits in this post about eBay’s new policy.

We also recommend a contract such as offered by Leonard Auction to consignors, part of which states:

  • REPRESENTATION OF GENUINENESS. Consignor represents and warrants each item to be genuine. Consignor agrees that any item found to be non-genuine withint 30 days of the auction date, will be returned to the Consignor, and upon return, Consignor will pay Leonard Auction, Inc., the net proceeds of the returned item.

If you are an auctioneer on the Proxibid portal, it is more than necessary now for you to put the onus on consignors–especially ones with whom you do not do regular business–perhaps with a contract such as John Leonard has devised. Keep in mind that Proxibid has no authority over consignors, but does have partnerships with auctioneers. Proxibid also understands that bidders should not be held responsible for counterfeits that have been depicted as genuine.

It is our experience that Proxibid helps resolves issues of counterfeit coins, as we have had five such purchases. The portal has been especially proactive for more than a year now.

As the portal grows in technological acumen, quality control and popularity, you will want to showcase your professionalism by ensuring that your consignors understand that they ultimately are responsible for wares being sold on their behalf. Be especially wary of consignors you do not know and make sure you check out any suspicious lots with a local coin club or dealer.

By the way, we state all this being a major Proxibid consignor. If ever any of our coins are deemed counterfeit, or even doctored, we take back those items at our cost. We know other consignors are just as conscientious. But some aren’t, and given the new eBay policy, you need to protect your interests.

You do not need any more risk.

Proxiblog is an independent entity with no connection to the auction portal Proxibid. Our intent is to uphold basic numismatic standards as established by the American Numismatic Association and the National Auctioneer Association and to ensure a pleasurable bidding experience not only on Proxibid but also on similar portals such as iCollector and AuctionZip.

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