Reasons Why I Rarely Extend Credit to Most "Less Famous" Coin Dealers

CACfan

The alleged crook described in the below screenshot built a 25-year business relationship with another dealer yet then allegedly cheated him out of $37,852 via a bounced check. I personally know one famous dealer who was bilked out of $300,000-plus by another dealer to whom he had extended credit. And yet another dealer who was defrauded out of $500,000-plus via a similar scammer. The aforementioned six figure thefts involved CAC coins. And let us not forget about the coin dealer who not only stole from other coin dealers but actually murdered at least 12 of them (Google "Coin Shop Killer").

TheCoinHound

I think it’s fair to say that all of the dealers supplying this business knew they were playing with fire. Extending credit was a calculated risk. If you doubt that, Google it.

Pyrite

When I was in the bizz, it took simple vigilance and attention to the teletype msgs from other dealers to know ....who... to trust.
I was on CoinNet teletype from almost the inception. 11th California dealer to subscribe.

Vincent.Savage

TheCoinHound said:

I think it’s fair to say that all of the dealers supplying this business knew they were playing with fire. Extending credit was a calculated risk. If you doubt that, Google it.

  

 Do you mean guys selling consignments and then spending the money , going bankrupt and saying sorry about that or downright fraud?

 I’ve dealt with a couple that got me nervous . They didn’t do what they said they’d do, eventually I was made whole.

Thank Goodness I found Ian @ Great Collections and Seth @ Witter Coin.

 Completely trustworthy .   I send them coins on consignment or to buy outright .    

My money is always safe in their hands and payment lightening fast.

Deal with them in complete confidence. 

Pyrite

REFERENCES References are golden !

TheCoinHound

Vincent.Savage said:

TheCoinHound said:

I think it’s fair to say that all of the dealers supplying this business knew they were playing with fire. Extending credit was a calculated risk. If you doubt that, Google it.

  

 Do you mean guys selling consignments and then spending the money , going bankrupt and saying sorry about that or downright fraud?

 I’ve dealt with a couple that got me nervous . They didn’t do what they said they’d do, eventually I was made whole.

Thank Goodness I found Ian @ Great Collections and Seth @ Witter Coin.

 Completely trustworthy .   I send them coins on consignment or to buy outright .    

My money is always safe in their hands and payment lightening fast.

Deal with them in complete confidence. 

No. I mean that if a coin dealer’s business model is to grossly overprice or otherwise misrepresent his merchandise, his obvious lack of integrity should be considered a red flag when selling to him. Granted, his checks will probably keep coming as long as he needs you, but expect to take a hit one day when he moves on.