There is no perfect way to perfectly distinguish fair and competent coin dealers from those who try to take advantage of customers with sometimes less-than-ethical business practices. But here are some factors to consider that can help you be fairly accurate.

1. Has the dealer been in business for a long time, especially with the same operation? Generally, you don’t last long in the industry if you don’t know what you are doing, or you don’t develop long-term repeat customers.
2. It is better for a dealer to be a member of the American Numismatic Association than not. Or to be a member of regional, state, or local coin organizations or those of specialized niches. Being a life member is more impressive than being a regular member.
3. How many memberships does a dealer have: organizations such as the National Coin and Bullion Association, Professional Numismatists Guild, PNG-Accredited Precious Metals Dealers, Coin Dealers Helping Coin Dealers (Roundtable), Professional Currency Dealers Association, International Association of Professional Numismatists, and the like.
4. Is the dealer an accredited submitter to any of the major coin or currency grading services?
5. Has the dealer attended or even taught any numismatic courses, such as at the American Numismatic Association summer seminars?
6. Has the dealer given back to the hobby or industry by serving in a leadership position in any numismatic organization, given presentations on numismatic subjects, authored articles or books on numismatics, been a contributor to any books or catalogs, served as an exhibit judge or as a Scouts coin collecting merit badge counselor?
7. Well-established dealers with a brick-and-mortar store would be more highly regarded if they were members of general business organizations such as the local chamber of commerce or similar entities. Also ask if they support any local charities.
8. If a dealer sells through an online third-party marketplace such as eBay, does he or she have lots of transactions and a perfect or nearly perfect rating?
9. What is the dealer’s Better Business Bureau rating? Most dealers will have no complaints filed against them there, but if they have a few that appear to be equitably resolved, that might be alright. Be wary of dealers with lots of complaints there.
10. In your contacts with the dealer, are they open or guarded? Do you get the feeling that the dealer is interested in developing a long-term relationship with you?
11. Does the dealer seem genuinely interested in helping you look for what you want or is he or she pushy, trying to steer you toward something the dealer wants to sell?
12. Does the dealer emphasize that your satisfaction with any transaction is more important to them than trying to avoid refunding your money for a reasonable return?
13. Ask other collectors you trust for their opinions of a dealer.

There are many other factors that could be considered, but there are two that I personally discount in importance. The first is actually being a member of the Better Business Bureau. In my discussion with many coin dealers, I find that a very low percentage are members of the BBB. Too often (though not always) I have found that dealers who do become BBB members and prominently advertise this membership in their promotions are those whose ethical standards may be lacking. When I see a dealer prominently noting membership in BBB, instead of simply mentioning it along with all the other industry and business memberships, that makes me wary.

I am also somewhat skeptical about online reviews. The company that I used to own and where I still work has been subject to a number of fictitious negative reviews over the years (some that I suspect were planted by local competitors), had negative reviews posted on our company that were really meant to be properly posted on another company with a similar name, and we’ve even had customers who give us the lowest rating in the misunderstood thinking that was the highest rating. However, when you do see negative ratings, be sure to review the dealer’s response to the post. People do make mistakes and any good dealer will try to resolve a problem. A lack of any response or an automatic standard response to a negative review is not a good sign (unless it’s in an obscure place that would be difficult to know about).

One thing to keep in mind, however, is that some less-than-scrupulous dealers may try to deceive customers by spending money on memberships and trying to make themselves appear more involved in the hobby/industry than they really are. Also, there are unfortunate instances where a few long-time good dealers got into financial troubles and turned to the dark side. So, trust but verify on a regular basis.

The answer to last week’s numismatic trivia question:

Last week, I asked— Who appears on a current US currency issue that was not born in what is now part of the United States of America? The first Secretary of the Treasury, Alexander Hamilton (1755-1804), appears on the current $10.00 Federal Reserve Note. He was born in Charlestown in the British colony of Nevis (now part of the country of St. Kitts and Nevis) in the Caribbean. Hamilton did not enter what is now the United States until October 1772.

Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He is also the recipient of the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, 2017 Exemplary Service Award, 2012 Harry Forman National Dealer of the Year Award, and 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild, Professional Numismatists Guild, National Coin & Bullion Association, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Michigan and writes Liberty’s Outlook, a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at http://www.libertycoinservice.com. He now volunteers with the National Coin & Bullion Association as its State Issues Advisor. His radio commentaries titled “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 AM Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio archives posted at http://www.1320wils.com).