By ERIC C. RODENBERG
Antique Week Correspondent

BELLA CHASE, La. — A glut of “frighteningly good” counterfeit collectible coins, widely manufactured in China, is threatening the integrity of the coin collecting market, warn industry leaders who maintain the public is spending millions of dollars on fake U.S. coins.

Most of these coins are being offered at online auctions, flea markets and swap meets.

“Millions of dollars already have been spent on these fakes and potentially millions more may be unwittingly lost by consumers who mistakenly think they’re getting a genuine rare coin,” said Paul Montgomery, president of the Professional Numismatic Guild.
Although it is a violation of the U.S. Hobby Protection Act to sell unmarked replicas, knowledgeable members of the numismatic industry maintain that 99 percent of these replica items sold into the U.S. market do not contain the required “COPY” markings. Moreover, manufacturers throughout China are churning out these unmarked replicas, often using equipment previously discarded by the U.S. mint.

The numismatic organizations noticed these replicas trickling into the United States about a year ago.

These coins are often purchased directly from China for as little as a dollar, up to $39. The problems begin once the coins arrive in the country.

“We believe many of these counterfeits subsequently are being resold as genuine rare coins in online auctions and at flea markets and swap meets,” says Clifford Mishler, president of the American Numismatic Assoc.

In addition, unscrupulous buyers are able to directly contract with Chinese manufacturers to produce the number and type of coin they desire.

“My understanding is that you can contact a guy in China, request a particular coin – or really medallion – I hate to call these things ‘coins,’ and they will quote you a price,” said Diane Piret, industry affairs director with the Industry Council for Tangible Assets (ICTA).

“It’s actually a terrifying situation,” Piret said. “I mean it’s one thing when China makes what we politely call ‘knock offs’ – when we see a Coach handbag or something similar, we say that’s a knock off, ‘wink, wink.’ But, when they’re manufacturing counterfeit medicines, which can actually make you sick or worse, and they’re tampering with your currency, or a large financial investment, it becomes a different matter.”

The United States government “hasn’t done anything,” Piret said. “We’re trying to work with the Secret Service and some other agencies … It’s a real problem – these things are cheap on eBay, and other auctions. And (relatively) it’s a ‘onesey, twosey’ type thing, with just a few manufacturers … although one guy admitted sending over one million coins into our country … and what are you going to do, if the buyer is in Des Moines, the seller is in New York, and we’re here in Louisiana? … it’s a real problem. We’re trying to work with the government.”

So far, Piret said the counterfeiting of coins has not wreaked the havoc that fakes have within the sports memorabilia, celebrity autographs, some pottery, furniture and other collecting categories. But, that doesn’t mean the potential to destroy such a market doesn’t exist.

“So far, our community is vibrant and healthy,” she said. “But, we had to jump on this … we have to warn the public.”

For the most part, Piret says, the coin collecting industry’s process of authenticating and grading valuable coins has served as something of a stop-gap measure in the wider dissemination of fake coinage.

In a jointly-issued consumer advisory, the ICTA and other numismatic organizations caution the public to buy only from reputable coin dealers, or at vetted coin shows. In addition, buyers can buy with more certainty by using rare coin authentication companies which certify and guarantee coins for their authenticity.
“These people in China are good, I tell you … they’re frighteningly good,” Piret, a former coin dealer with nearly 40 years in the business, said.

“I was at a seminar when we were presented with five coins – each an 1893-S silver dollar – and asked our opinions. A couple of them were easy to spot as fakes. But, there was one fake that was just so well done. A dealer sitting next to me said he would have easily paid $15,000 for it. And he was an experienced dealer – not someone who started yesterday.”

Looking at the quality of that coin, it’s scary.

“Right now, the only thing we can do is warn the public – to try to take the profit away from these counterfeiters … once we do that, they’ll – I’m sure - move onto something else.”