Coin collectors - what is the scam in this Ebay listing?

Question

http://www.ebay.com/itm/Huge-Silver-Coin-Lot-Many-Different-Countries-Over-64oz-ASW-Cheap-Silver-/121028047226?pt=US_World_Coins&hash=item1c2dd5717a

I'm learning the silver and gold coin trade and have become somewhat avid at coins within my country of the USA. But I'm puzzled by listings like this. This is a purported 64 ounce silver lot of international silver coins of all types. They have it listed as a Buy It Now @ $2,050 with $25 shipping. Just out of curiosity and to try to learn more about scams, I asked the seller: "Is this 64.43 Troy Ounces (31.1 grams per Troy Ounce) or Avoirdupois Ounces (frequently used by postal scales, which are 28.3 Grams per Ounce)? Is this a mixture of 40%, 90%, etc. or are all they a certain percentage of silver? Has every coin been verified to in fact be silver?"

Their response: "the weight is by troy oz. all coins are 10-925 Silver and yes all are silver. weights taken from actual silver weights given in world coin book. Thank you for your interest"

I find it hard to believe that a place like this is listing a 64oz pile of silver and yet claimed to go through and look up each coin's weight in "world coin book". I know the 925 sterling symbol quite well. But what is "10-925" sterling? The price of silver for a Troy Ounce is like 32 or $33 right now. Even assuming $32 an ounce times 64 ounces...that's $2,048.

What is the "catch" exactly? Why wouldn't someone like this list all similar ones in "lots" on Ebay and sell smaller lots to make what would probably be $3K+ based on numismatic values? Is it really just a matter of them "not having time do list it individually" or is this some type of scam that is eluding me?

I'm basically just asking out of curiousity and I don't like to buy anything random that I can't see everything in. I was just wondering if any of you out there who collect coins and are experts at it can chime in on your opinion. Is it a scam or are they just looking to make a quick buck on scrap silver vs the time to re-list it and sell it individually?

Answer 1

There is probably no scam here, just a lazy seller. There is nothing at all wrong with selling a bunch of coins of mixed purity. What this seller meant - it is worded poorly - is that silver content varies from 10% silver (the last Mexican silver pesos were down to 10%) to sterling .925.



I never advertise a total actual silver weight without giving the buyer the opportunity to check my math, and the only way to do that is to list each different coin and the quantity of each, grouping them by country and listing date and denomination so the buyer can consult their reference of choice.



When coins are worn to the point they're not going to have any numismatic value beyond their bullion value, or not enough to offset the cost of time in selling individually, this is absolutely the way to sell them. But you have to provide facts. I wouldn't touch this the way it's offered.

Answer 2

They're probably selling them as silver as it looks like most of the coins are worn and damaged. Sadly that auction would not be of any profit for any buyer; the seller is hoping to find that one person looking to "get rich quick" which in my opinion will not happen with that lot.



If they did try and sell each coin, given the number of coins in the lot, they'd exceed their 100 listing limit on Ebay, and not only have to pay a listing fee, but they probably would not sell all the coins anyways. There is a slim chance that the lot could sell to someone trying to grab some silver in the hopes that silver prices will increase in the future. As with all precious metals, the price will rise and fall, but sadly not enough for this lot to really let someone "make bank" on it.

Answer 3

People should remember that whatever the listed price of silver is on the commodities market does not mean that it is the price that you could sell it for. he published price of silver (or gold) is for a commercial quantity such as 1000 gram lots. Smaller quantities are discounted.



It would be very difficult for an individual to sell silver at the published price even if you have large amounts. Purity must be certified or of a known amount such as with US coins. International coinage would be difficult to certify, especially if it were from multiple countries. It would cost you considerable fees to have dealers on the commodities market pick and sort through such a mixture without paying for the time and knowledge.



The "catch" is that the seller can not sell these coins at such a high price through normal channels. The seller is trying to reach a market of uninformed people who think that the price of silver is absolute. The silver price of $33 does not exist in the real world unless you can sell directly to the smelter and even then, you will be paying for their service.



These adds are not scams but are considered "gamblers specials". They can be a bargain of the price of silver doubles but I can't predict when that will happen.



Nothing is for free! If adds like this were of good value, everybody would be buying them.

Answer 4

anyone with genuinely valuable coins would sell them thru a reputable auction house.