Buying coins on eBay is a double-edged sword. On one hand, you have the opportunity to find some rare and valuable gold coins for sale for a fraction of what they’re worth. On the other, fraud is prevalent, and sometimes it’s too late before you find out you’ve been scammed. One of the most popular scams on online coin auctions host is the “graded coin value” scam.
Coins are “graded” by a third party grading service, which rates the coin at a higher grade than it actually deserves. The seller will link to a viable grading service like PCGS (Professional Coin Grading Service) to reinforce the value of the coin. The coin is then sold at a “discount.” For instance, if the third party grader ranked the coin at a grade worth $8,000, and the seller has the gold coin listed for $300, what a bargain! Not so.
The problem is, anyone can be a third-tier grading service. All you really have to be able to do to qualify is slab a coin (read: put it in a plastic holder. Doesn’t require much skill). It is possible that third-tier grading services exist solely to upgrade coins specifically for this type of fraud. They get their money, the seller gets his, and everyone (except you) is happy.
Third tier services are known to be unreliable. To be safe, only buy from sellers who use the following grading services:
- Top Tier (such as PCGS and NGC)
- Second Tier (such as ANACS and ICG)