Is There a Doctor in the House? Sadly, Yes. by Peter Rexford on Creators.com

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Is There a Doctor in the House? Sadly, Yes.

A penny for your thoughts. OK, considering the current value of one cent, it may not mean much or even be a phrase in modern use, but back in it's day, a penny would buy plenty even if your response was, "I'm not thinking about anything."

The fact is, terms involving coins and money abound. We just may not realize it.

Ken Bresset — one of the leading numismatic scholars — has virtually spent a lifetime researching not only coins and money, but also how we weave them into our daily conversation. Think about it. "Put your two cents in," "not worth a plugged nickel," "pin money" and "passing the buck" are all phrases with connections to cash.

As technology has advanced quantifiably over the past few years, a few unscrupulous people are trying to pass the buck or even a penny in a different fashion by altering coins to make them appear more valuable than they really are.

Understand, this doesn't include misinformed collectors who might try to polish coins to enhance their appearance. That was a common practice for 150 years or so by casual collectors who mistakenly believed shiny coins would be of greater worth. Some would apply copper or silver polish. Others would go so far as to put their coins in a rock tumbler. Either way, with the original patina removed from the coin's surface, the value of their coin was destroyed. Because the practice was so widespread, the number of surviving high-grade coins that would now be worth a small fortune are very few in number. Those that did survive unscathed are even more rare and valuable.

Truth be told, dealers will tell you they prefer and pay much more for coins with full original detail, even if they are tarnished. Collectors are funny that way.

The current problems don't involve any of that. Rather, the concerns are with "doctored" coins. These are coins that have been altered using everything from lasers and advanced chemical treatments to visually enhance the appearance. According to the Professional Coin Grading Service (PCGS), the frequency of these types of coins turning up is alarmingly high.

Moreover, the techniques used are consistently new and sophisticated.

To combat this, graders for the PCGS (and, invariably some other certification companies) have developed equally sophisticated methods to detect and analyze coins submitted for grading and authentication. To put it bluntly, the grader has stated, "We're giving public notice to those who alter coins that we're clamping down on them."

For an idea of just how important this is not only to serious collectors but anyone who may have inherited or purchased a few coins, consider the value of some coins today. On the accepted grading scale used by dealers and collectors, a $20 gold piece of a certain type in Mint State "64" condition has a listed value of $36,000. That's a lot of money. However, in Mint State "65" — just one tiny grade point higher — that same coin is listed to bring $155,000.

With such dramatic disparities in monetary worth, clearly graders are not fooling around. Any coins suspected of tampering in violation of Title 18 of the U.S. Code, Section 331, may be submitted to the FBI for review to determine if U.S. law has been violated. In addition, PCGS has stated it will cooperate fully if the FBI believes there is sufficient information to warrant an investigation.

None of this is meant to scare off collectors from purchasing coins. Rather, it's considered a word to the wise to make sure any rare coins being considered for purchase have previously been authenticated or certified. If not, it's a strong signal that having a solid agreement with the seller that the coin will be submitted for authentication is a must. Graders will sonically seal all genuine, non-doctored coins in special tamper-proof holders. Once the coin comes back clean, the transaction will be complete. Should a seller balk at such an agreement, it would be a signal for the buyer to wisely walk away.

Having a coin certified does cost some money — usually around $40. The seller or buyer can agree to absorb the cost or it can be split. Either way, for high-value rare coins, it should be considered a mandatory step. Or, to quote another adage using coin vernacular, it's better to be penny-wise than pound-foolish.

Editor's Note: A JPEG visual of a coin that has been certified as genuine has been sent with this column.

To find out more about Peter Rexford and to read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.