Recent newspaper ads for buffalo nickels touted the items as valuable and nearly impossible to find. But when the Better Business Bureau placed an order for the coins, the bag contained 18 nickels, but some were so worn that the minting date was unreadable.
Bill Smith, a BBB investigator, took the coins to local coin dealers, who said they were worth no more than a sixth of the $29 plus $6 shipping that the BBB paid. One dealer said he'd pay no more than a dime for the coins, or $1.80, and another said he would not even offer to buy them. A third dealer said he'd pay $4.50. Details are available in today's BBB press release.
The BBB has previously challenged ads by the company selling the coins, Arthur Middleton Capital Holdings of North Canton, Ohio. Middleton owns World Reserve Monetary Exchange, the entity that was advertising the nickels and which has advertised $2 bills in the past. Other Middleton companies have advertised armored safes, health pills and portable heaters.
Middleton has said it would change its ads after BBB challenged them. But problems with its advertising persist.
The BBB has the following tips for consumers to consider before buying coins or currency through the mail:
- Read all advertising and marketing materials carefully in an effort to understand exactly what you will be receiving. If you have any questions, ask the company directly.
- Be wary of words that indicate that an item is valuable or will increase in value. There are no guarantees regarding the appreciation of coins or other collectibles.
- Make sure you understand any additional fees such as processing or mailing costs.
- Make sure you understand the company’s refund policy if you are not satisfied.
- Compare prices online or with a local coin dealer.
- Pay by credit card whenever possible in case you want to challenge the purchase.
- Check a company’s BBB Business Review at www.bbb.org or at 314-645-3300.