Expert: Joe Hylas - 2/3/2007

Question
Hi Joe
Your response to my prior question was very thorough and informative - thanks. So I figured I would ask you a few more.  
 This one concerning an Ebay purchase. I purchased 3 proof sets (1968, 1969 and 1970) and believe they may not be authentic proof sets.  The seller claimed they had never been unsealed. I opened the cardboard boxes containing the sealed plastic display boxes to examine the sets.  I did not open the display containers.  On my initial examination, it appeared that the boxes had been tampered with., ie pry marks and mismatched seams, a glue spot on the outside of a case and more.  All very subtle.
 My question (about time huh?) is, what condition should the coins be in? What should one expect? The coins in the proof sets are bright and polished but have small scratches and show varying degrees of wear, some a considerable amount. In addition one penny had a portion that was silver.
Shouldn't the coins in a sealed proof set (the plastic display box) show no sign of wear and have distinct detail? Shouldnt
there be no obvious flaws (silvered portion)?
As I am a novice  your advice.would be appreciated.

thanks
mike

Answer
Hi Mike,
This is a true dilemma.  Let's start by me telling you that the sets you purchased are very inexpensive sets and I can't imagine anyone taking the time to switch coins on sets that are only worth about $5-8 each.
BUT, people never cease to amaze me in what they do and how they try to cheat.
As for the cases "appearing" to be tampered with, sometimes the case look that way directly from the mint so that is not an issue.  However, the coins should be bright with incredible detail.  The detail is the biggest issue since coins can "tone" over time and that is normal.  If the coin have true wear, that is unacceptable. Small scratches can be the result of DIE POLISHING.  If you take a magnifying glass, look at the scratches and see if they are actually raised above the surface of the coin, or set into the coin.  If they are set into the coin, send the sets back.  When a dies is polished, the resulting scratch in the die results in a raised line on the coin because that is where the metal flows when the coin is struck.  Die polishing is acceptable however damaged coin is not.
Check out our website  WWW.AllCoins.US  You may want to join our mailing list.
Ebay is a good place to buy coins but you never really know what you might get.  I always advise clients to find a dealer they can work with one on one.  Build a relationship with him.  Let him guide you.
I have worked and continue to work with numerous new collectors.  I enjoy sharing my knowledge and they enjoy learning.  It's a good relationship.  As a novice there are many mistakes to make, mistakes I made 40 years ago.  My aim is to help you avoid those mistakes and enjoy the hobby.
Another thing, proof sets are nice.  However, the gov't makes millions every year and usually, they do not appreciate as much as other coins.  If you want to buy proof sets, look into the ORIGINAL sets from the 1950's and earlier.  You can ususally get sets from 1954 thru 1964 in original gov't packaging.  1936-1953 are rarely found in original boxes.  Leave the later sets alone for now.  They will still be affordable in years to come whereas the earlier sets continue to rise.
If you want, come up with a budget as to what you can spend.  If you have a direction you want to follow, stick with it, have a goal.  I have help many collectors assemble sets of Morgan Dollars and it can be done affordably over time.  For instance, there are about 30 coins that can be had for under $50 each in MS-63 quality.  And don't be fooled, not eveyone will accuaretly grade the coins.  Many "dealer" will purposely overgrade the coins.  SO you have another avenue to look into.  If you were to decide to collect Morgan Dollars, you can  either assemble a set in an album in which case you need uncertified coins.  In this case, it is imperative that you get accurately graded coins.  Or you can assemble a set of certified coins.  There are special pages that actually hold certified slabs so you can put them in a binder.  If you do certified, ONLY BUY PCGS or NGC certified coins.  I can not stress this enough.  There are too many services that overgrade the coins by 1 or 2 points and unknowing collectors think that all certified coins are the same, they are not!  They are junk that no dealer will want for the prices of PCG or NGC coins, they simply do not trade on par.
Feel free to contact me again.
Regards
Joe Hylas