This is a prime example of a Chinese counterfeit that is being sold as a replica without the word “copy,” indicating the auctioneer knows about the U.S. Hobby Protection Act.
If your consignor sends you a counterfeit coin and calls it a replica, don’t be fooled. Replicas must have the word copy on the obverse to be in compliance with U.S. Hobby Protection Act. Also, the US Mint has specific instructions on the manufacture of replicas.
We strongly recommend that all auctioneers create a consignment agreement that specifically states that sellers are responsible for all counterfeit coins returned for reimbursement.
Several auction houses already have such contracts. Here is such a clause from Leonard Auctions:
REPRESENTATION OF GENUINENESS. Consignor represents and warrants each item to be genuine. Consignor agrees that any item found to be non-genuine within 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.
Sometimes it takes 2-3 months to prove that a coin is counterfeit. For instance, last year we purchased one that was so skillfully done that we had to send it to NGC for authentication because we would not have been able to prove it was a contemporary copy of an 1869 coin. That cost us $70 in NGC fees, but it was worth the money.
The Proxibid auctioneer took back the coin, to his credit.
In general, the consignor and not the buyer should be held liable for all doctored, counterfeit or otherwise altered coins. Create a contract protecting you rather than focusing on the “All Sales Final” mantra of auctioneers. That does not relate to U.S. Coins and Currency.
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.