Coin collecting is often touted as a safe investment in times of crisis. In fact, it is also possible to buy – or sell – coins for several hundred or thousands of euros. However, this business is more involved than one might think. And there is a lot of rip-offs on the market for commemorative coins, medals, etc.
Beware of rip-offs – the coins are often worth significantly less than advertised
In reality, the coins are often not worth more than the material they are made of, reports the mdr. As an example, the news channel cites the case of a 99-year-old from Hamburg, who had purchased individual coins, some of which were worth more than a hundred euros – only to find out later that the value of individual specimens was actually just around nine euros. In another case of coin rip-off, a man ordered coins from a provider once, but continued to receive coins after the first delivery. When the deliveries didn’t break off even after he had asked the seller to stop by phone, he felt under so much pressure that he paid for the goods sent anyway. “That’s almost in the area of coercion,” quotes the mdr Daniela Czekalla from the Bavarian consumer center on the case.
Such scams are not isolated cases. “Even if in times of rising inflation […] Alternatives for investments are in demand, one should refrain from […] Don’t let advertising campaigns blind you,” writes the consumer advice center in Saxony on its website on the subject of coin collecting. In any case, you should check the coins on offer or have them checked before you buy them. The consumer advice center in Zwickau also advises you to check them carefully – and adds that you can “You shouldn’t jump at an actually trustworthy offer. Instead, “investment goals and investment mentality must be taken into account in order to find the right product.” If you are unsure, you should definitely seek independent advice.
Trusted dealers are members of a professional association
Of course, there are also trustworthy dealers and coin offices. Not only can you buy new coins from them, but you can also check the coins you own and have their actual value appraised – and sell them there if necessary. According to Stiftung Warentest, it is important that the dealer or coin dealership belongs to the Association of German Coin Dealers or the Professional Association of German Coin Traders. Anyone can check membership: the associations keep publicly accessible member directories on their websites. It can also make sense not only to get an expert’s opinion, but also to get a second opinion from the competition.
Coin collections are often part of a heritage. In order to avoid trips to experts or even a sale that is far too low, it is essential that heirs know about the value of their ancestors’ collections. “It’s best for collectors to tell the next generation,” Christian Stoess from the coin cabinet of the Berlin State Museums told Stiftung Warentest.
In technical jargon, “beautiful” stands for a poor degree of preservation
In general, the value of a coin always depends on its frequency, its state of preservation and the number of collectors in the area. In the “Jaeger” and “Michel” catalogues, those who are interested can delve deeper into the subject and look up German coins published after 1871 in order to get a better overview of the present collection and its value. You can also find out about the current selling prices of certain coins and medals on sales platforms such as eBay. Attention: In technical jargon, “beautiful” stands for a poor degree of preservation, while “uncirculated”, “mirror gloss” or “polished plate” mean a particularly good degree of preservation. The price difference here can be up to several hundred euros.
Professional traders usually want to make a profit by buying and selling coins. According to Stiftung Warentest, if you have the time and patience to auction your collection yourself, you can achieve significantly higher profits. However, this only works if the money does not have to be in the account soon. At the same time, according to the experts interviewed by the mdr, one should be careful when supposed treasures are offered particularly cheaply on auction platforms. Because: Medals are often made in the design of real collector’s coins and sold as such – they look the same, but are far from the same value.
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