This edition of "Coin Dealer Ethics" deals with inheritance; not the kind of inheritance where someone dies and you get their fabulous coin collection, but where a coin dealer decides to retire and sell his business to another person. Should the new owner benefit from that dealer's "goodwill?" Here's the scenario:

Ernest K. of Honest Man Coins (names are fictional) had been in the coin business for 40 years. He had an excellent reputation, and belonged to numerous numismatic associations, including the ANA and PNG. Although his coin business wasn't large, it had a devoted following of customers, and Ernest attended several coin shows each year which helped him broaden his reach and gain access to a wider range of material. When Ernest retired, he sold the coin business to a single buyer, including the stock, the business name and goodwill, the lease to his excellent downtown location (which still had 14 years left on it at a great monthly rate,) and all other assets that belonged to the business (including the customer list, store fixtures, coin safe, etc.) The "stock," of course, was the coins that Ernest had in his inventory, plus a goodly assortment of coin collecting supplies and books. Basically, Ernest sold everything that you'd find in a normal local coin shop, what business salesmen call a "turn-key operation." Unfortunately, less than a month after the sale, Read more...

The U.S. Mint has issued a Consumer Advisory warning citizens about the counterfeit U.S. coins that have been flooding into the United States from China.   Although counterfeit coins are as old a phenomena as coins themselves, dating back to antiquity, the Chinese-made counterfeits represent an unusually dangerous threat because of the high technology being employed to produce many of them.

The U.S. Mint Advisory characterizes the coins as "imitations" and includes a photograph of a Proof Morgan Dollar.  The Advisory states that the imitation coins bear dates prior to 1950.  You can read the entire counterfeit coin advisory on the U.S. Mint's Web site.

I have been warning coin collectors about these Chinese-made counterfeit coins since early 2008, when I obtained photographs and the operational details of a working coin counterfeiting ring based in China.  The fake coins are primarily entering the hobby marketplace through online auction venues such as eBay.

Learn More About Counterfeit Coins

• Inside a Chinese Coin Counterfeiting Ring
• Top 5 Tips to Avoid Buying Fake Coins on eBay
• Counterfeit Coin Detection Kit
• Fake Chinese Ackey Coins and Dies

The U.S. Mint has begun selling one of its most popular annual items - the Uncirculated Mint Set. This attractive set comes in two separate folders, one for the Philadelphia-struck coins, and one for the coins struck at Denver. This year's set has an all-time high number of coins - 36! The 18 coins from each Mint are as follows:

• 4 Presidential Dollars
• 1 Native American (Sacagawea) Dollar
• 1 Half Dollar
• 6 Territorial and D.C. Quarters
• 1 Dime
• 1 Nickel
• 4 Cents

The Cents are struck in the original 95% copper alloy that the Lincoln Cent was struck from in 1909 when it was first issued.  They bear the 4 special designs commemorating Lincoln's life which are being issued this year.

The cost of this year's Uncirculated Mint Set is $27.95, plus the U.S. Mint charges an additional $4.95 per order for shipping and handling.  You can order the 2009 Uncirculated Mint Sets from the U.S. Mint Web site.

Every once in a while, I come across a coin related site that is just so well-done and fascinating that I am eager to share it with everyone I talk to. SmallDollars.com is one of those sites! Its entire focus is on the smaller U.S. One Dollar coins of the past 30 years, specifically the Susan B. Anthony Dollar, the Sacagawea Dollar, and the ever popularPresidential Dollars. Coverage on the site includes such fascinating topics as:

• What are Full-Talon Anthony Dollars?
• Anthony Dollar Counterfeits
• Experimental Rinse Sacagawea Dollars
• Sacagawea Dollar VIP Strikes

This is just the tip of the iceberg! If small-module U.S. dollar coins interest you, you could spend hours at this fascinating site, and I bet it it'll be a great one to watch for the inside scoop on the Presidential Dollars, too!

United States Mint Image

Although counterfeit coins represent a very, very minuscule portion of the overall number of coins sold, the chances of buying a fake coin are much higher when you buy online from sources such as eBay. The risk is especially high if you buy from sellers in the Far East, such as China and Hong Kong. But you can also end up with a fake coin from your local coin show, if the dealer you get the coin from buys from unreliable sources.

How do you protect yourself? Fortunately, the tools and techniques to rule out the vast majority of counterfeit coins are both inexpensive and easy to use. The toolkit starts with a simple household magnet! Learn why, and what the other basic anti-counterfeit coin tools are, in my easy-to-follow tutorial on detecting fake coins using my counterfeit coin detection kit.

Learn more:

• Counterfeit Coin Detection Kit
• Inside a Chinese Coin Counterfeiting Ring
• Top 5 Tips to Avoid Buying Fake Coins on eBay

To me, one of the most amazing things about coin collecting as a hobby is that you don't need a lot of special tools or equipment to get started. Sure, these things help, but anybody can begin collecting coins right out of their pocket change! 140 million Americans are collecting State Quarters, and trying to put together a complete set of one of each State Quarter type out of pocket change is tougher than you might think!

For people who want to collect older coins right from circulation, the Jefferson Nickels simply can't be beat! I often find nickels from the 1940's and '50's when I search through rolls of nickels from the bank. I wrote an article awhile back about how to begin a collection of these great nickels right out of circulation, called How to Start a Coin Collection on $4. But easily the most valuable coins circulating through our pocket change these days Read more...

The third of the four 2009 Lincoln Cent designs has been released.  The design, which features Abraham Lincoln giving a speech in front of the Illinois State Capitol Building, is called Lincoln's "Professional Life." It commemorates the period of time when Lincoln worked as a lawyer and state legislator in Illinois, prior to being nominated for the presidency of the United States.

The new pennies can be purchased on the U.S. Mint site in a 2-roll set for $8.95 per set, with a 5-set limit per household. Each roll contains 50 coins, struck in the normal circulating copper-coated zinc composition. One roll is from the Denver Mint and the other from the Philadelphia Mint. The U.S. Mint adds a $4.95 shipping and handling charge to all orders.

• Buy Professional Life Cents from the U.S. Mint
• See all four 2009 Lincoln Cent designs
• History of the Lincoln Cent

The U.S. Mint has made the 2009 Ultra-High Relief Saint-Gaudens Double Eagle gold coin a lot easier to get!  The order limit has been raised from one coin per household to 10 coins per household.  Although this might not sound like an important change superficially, what it means is that coin dealers and other speculators will now be able to easily acquire multiple specimens, thereby increasing the the number of 2009 UHR gold coins available on the secondary market (such as in coin dealers' shops, on eBay, etc.)

Currently priced on the U.S. Mint Web site at $1,289.00 (plus $4.95 shipping and handling, which is added to all U.S. Mint orders), the 2009 UHR Saint comes in a grand mahogany display box, and includes a beautiful hardcover companion book that tells the story of this legendary coin.

• The 2009 Ultra-High Relief Saint-Gaudens Gold Coin

Have you ever wondered why some error coins are so well-known and worth so much money, while others are virtually ignored? Take, for example, the 1937-D 3-legged Buffalo Nickel. The missing leg was caused by a Mint worker being careless while cleaning a coin die; he accidentally erased part of the leg. This sort of accidental erasure is known to exist on most circulating coin types to a greater or lesser degree.

Why do we know about the 3-legged Buffalo Nickel, and why are specimens worth many hundreds of dollars or more? Because of hype. A coin dealer who happened to get an early good supply of 3-legged Buffaloes decided to "specialize" in them. He promoted them heavily in his advertising and told everyone who would listen how rare and special they were. Once the 3-legged Buffalo Nickel got listed in the Red Book as a recognized variety, its fame was assured, because back then additions to the Red Book canon were very rare.

Despite this intriguing history, the 3-legged Buffalo is far from being the most hyped coin in history. That honor goes to Read more...

The U.S. Mint has announced that the 2009 Silver Proof Set is on sale now via its Web site. This year's set contains 18 coins divided into 4 separate plastic cases (called "lenses" by the Mint.) The price is a whopping $52.95 (plus $4.95 per order for shipping.) The coins in the set are all struck at the San Francisco Mint and bear the S Mint mark. So how do we arrive at this grand total of eighteen coins?

• 4 Cents (the 2009 Lincoln Birth Bicentennial pennies)
• 1 Nickel
• 1 Dime
• 6 Quarters (the Territorial and Washington DC coins)
• 1 Half Dollar
• 5 One Dollars (the 4 Presidential Dollars plus the Sacagawea)

The Dime, Quarters, and Half Dollar are struck in 90% silver. The four Cents are struck in the original alloy used for the first Lincoln Cent in 1909: 95% copper, 3% zinc, and 2% tin.

Although the Silver Proof Set is expensive when compared to the regular Uncirculated Mint Set, it tends to increase in value at a faster pace than the the regular set. Given this year's high price and the generally poor economy, the 2009 Proof Set might prove to be a smart investment. Although it's too soon to tell what kind of sales it might enjoy, this set is worth keeping an eye on!