|The smiling coin salesman on HSN is like the wolf about to eat the Three Little Pigs!|
When the U.S. Mint opened up sales for the 2010-W Proof Silver Eagle in November of 2010, the price was $45.95 each for consumers with a limit of 100 coins per household. Now HSN (Home Shopping Network) is selling these very same coins for $179.95 EACH plus $9.95 shipping and handling. HSN is a big customer of the U.S. Mint and the price they paid for each coin was way below the $49.95 that consumers paid. On April 3, 2011, HSN was selling these coins at an alleged "Price Break" for only $159.95 each plus $9.95 S & H.
|HSN charges $100 per coin over retail prices on 2010 Proof Silver Eagles.|
|The Wolf: Mike Mezack sells coins for ridiculous prices to consumers on HSN.|
Watch Mezack and another salesman use propaganda to sell these coins at prices that gouge the consumer.
Please notice the sales tactics--propaganda--they are using. They talk about the price of silver going up dramatically, while they are lowering the price of the coin by $20. This makes it sound like are giving the consumer a "deal." They don't, however, tell you what the price of silver is on April 3, 2011 (the morning that their "show" was aired). The price that day was around $38/ounce. Now the proof issues of the Silver Eagles do command a premium, but it is nowhere near what they are charging: $159.95 each.
Click on the coin to purchase a 2010 Silver Eagle at a realistic price from Amazon.com!
The Numis Network website tells us that "...Mike revolutionized the numismatic coin industry by pioneering the sale of graded, modern issue silver and gold coins. This transformed the industry." In other words, he came up with a gimmick to increase sales. People are impressed with coins graded MS70 or PR70 in a certified holder. What the HSN boys don't tell you is that the vast majority of modern coins are available in those grades. It is the older coins that are rare in high grades. No modern coin in an MS70 or PR70 holder is rare.
There were two ANACS certified proof Silver Eagles graded PR70. Both sold for $79.95 with FREE shipping. The only difference was that these coins did not say "First Day of Issue," but that really means nothing to a collector. The price difference is a whopping $100. The price difference on the non-certified coins is a little more: $108.80. These savings are based upon HSN's regular price of $179.95. So if people purchased their coins on eBay at true retail prices, they would have saved $100 or more.
|Do you remember what P.T. Barnum said?|
If someone you know has bought coins on HSN, please send this blog post to them. If you have personally bought coins on HSN, you can still educate yourself. Find a local coin club. Attend local coin shows. Get some books on the coins that you enjoy. HSN is counting on you not to do that.
So it all boils down to this. If you want to spend your money foolishly, then you can believe what the charming, smiling boys on HSN are telling you. If you don't want to be fooled and robbed by their propaganda, then educate yourself. Coin collecting can be a wonderful hobby--if you do it right.
Copyright (C) Eric Brothers 2011. All Rights Reserved.