I often scroll through eBay listings when waiting at the doctors office or to kill some time in line at the post office. Despite what many collectors have experienced, we enjoy buying and selling on this platform and do plenty of trades there, from both sides. That being said, there have also been a few not-so-pleasant buying experiences on eBay for us.
EBay is rampant with fake coins but most are easy to identify, even with the horrible seller photos. However, two of our purchases this year took us by surprise and showed us that we need to take even more precautions than we have in the past.
There is a new string of fake PCGS slabs on the market and they're getting past the most experienced collectors and dealers. We bought two of these highly deceptive fakes recently and both came from two different eBay seller accounts.
In April of this year, we purchased a 1901 (P) Morgan Silver Dollar in PCGS MS62 on eBay (a pricey condition rarity). After receiving the coin in hand, this Morgan looked to be graded technically correct; however, it did have an over-dipped appearance, meaning the coin lacked some luster due to being over-dipped in a cleaning solution (not uncommon to see dipped coins in PCGS holders). Other than that, the coin and holder raised no other suspicions, so we sold it. Again this is a tough coin, and always in demand, so the coin sold rather quickly to another dealer.
The individual who bought this coin from us is a professional coin dealer with 15 years of experience. He gave the coin a look and to him, it raised no suspicions; so he placed this 1901 Morgan into his inventory. A few months later, he sold this coin to another, larger more experienced dealer who, upon receipt, identified the PCGS holder as a fake.
The seller, to whom I sold the coin, was notified. Then, of course, I was notified. After a closer look from all three dealers involved, we were all in agreeance that this PCGS holder was not genuine, even though the coin was.
So this coin/holder was passed by two professional coin dealers, with no raised eyebrows, before it was finally identified. PCGS was also notified. More research was done and it was found that the PCGS slab was cloned from a genuine PCGS slab. In other words, a genuine 1901 (P) Morgan $1 was carefully selected and then placed into a counterfeit slab with a legitimate PCGS serial number and barcode.
Shown below is the fake PCGS slab (right) compared to the genuine PCGS slab (left) (The genuine example was was found on GreatCollections. Photo comparison courtesy of Jack Young).
After receiving this coin back into my possession, I busted the coin from it's fake holder, and submitted the coin raw to PCGS for authentication/grading. As of writing this article, the coin still at PCGS (although there is no doubt to the coins authenticity, it is highly unlikely to receive the same grade of MS62).
The second fake we purchased also came from eBay. It was a 1941-S Walking Liberty half dollar in PCGS MS66+ CAC (pictured below). (Yes they are faking CAC stickers too, and yes they are aware.) The current price guide as of writing is $1,100 in MS66, $6,000 in MS66+, and $37,500 in MS67 (PCGS Coin Price Guide)--yet another coin with a huge spread.
The photos above were taken by me, and it might be easy for a WLH snob to notice that the coin does not match the grade. However, at a quick glance, the coin would get past many collectors and many dealers. In fact, this exact coin/slab has been seen by many dealers who admitted themselves that they likely would have bought this. In reality, dealers often buy many coins at a time and do not devote the full attention it might require to spot one of these "super" fakes, especially when combing through a collection or any other large deal.
As unfortunate as it is, we all need to take a step back and realize that these fakes are getting much more difficult to detect and they are becoming more prevalent too. So, I have below some key indicators for you to keep in your back pocket to prevent yourself from buying, or worse, selling one of these in the future.
First, take a look at the paper insert. You can see that the ink pixels extend all the way through the front of the label on the genuine PCGS insert. On the fake, the pixels stop about halfway through the barcode and then disappear completely.
Second, take a look at the font on the inserts. The genuine PCGS insert displays a thicker, fuller looking font than the fake.
Third, notice the raised 90-degree alignment guides on the fake. They appear more square and sharp than those on the genuine slab. In fact, it seems that all of the edges and corners on the fake are sharper or less rounded than those on the genuine slab.
Fourth, the back of the PCGS insert color is off. The "G" on the genuine insert is more gold and has a sheen. The fake "G" is darker brown with no sheen.
Fifth, take a look at the genuine slab below on the left, You can see a tiny hole at the center bottom of the slab. These pinholes are present on almost every single PCGS slab since generation 3.0 (PCGS Museum). (If you would like to see the PCGS Museum of Holders, the link will be posted at the end of this article).
Sixth, the laser engraved serial number found on the bottom of gen 6.0 PCGS slabs is missing on the fake.
Finally, the CAC sticker is a bit more obvious. On the fake, the large "CAC" upfront as well as the smaller "CAC"s behind are much less transparent and more defined.
The last and most important of these indicators will be the coin itself. These holders are created with the attempt to misrepresent the actual grade of the coin. So do everything you can to NOT get wrapped up in buying the holder before buying the coin, and I know many of us are guilty of this (myself included). Look at every coin and ask yourself, "is it graded accurately?"
(Please note: Even within genuine PCGS slabs, there are subtle differences within each generation type. I have noticed differences such as barcode position, brightness of label, and cut position of label. So, just because one slab has a subtle difference from the next does not mean that slab is not genuine).
Since discovering these fakes, there have been many discoveries of similar fakes on the market, many coming from eBay, but others have been seen at coin shows and one example was even spotted on a major auction house website (not name-dropping this one). Whatever group or individual that is behind these fakes has a great understanding of coins and holders, (which should scare us all). Here is what we have concluded as their modus operandi (MO). Please take note, as knowing these tactics may help you identify fakes in the future.
Genuine coins are used in fake slabs.
All examples that I have come across attempt to replicate PCGS gen 6.0 slabs without TrueViews. (Newer PCGS slabs have more security/anti-counterfeiting measures and would be more difficult to replicate.)
Coins do not have the TrueView service. (Coins with TrueViews would be easily identified).
Coins never have an auction record (likely to prevent easy comparison against the genuine example).
Coins are white or mostly white.
Coins selected have big "spreads". (These are carefully selected coins, likely sourced from lower grade holders and placed into these higher grade fake slabs.)
Buying these fakes was a costly mistake for us, both financially and mentally. Rest assured we are doing everything we can to stay ahead of the crooks and inform you, so that we can all keep this hobby as honest as Abe himself.
Please bookmark this page with your other numismatic references and share with your local coin club. Thank you for reading!
Sources
PCGS Coin Price Guide: The Industry Standard for US coin values. Retrieved September 4, 2022, from https://www.pcgs.com/prices/us
PCGS Museum of Coin Holders. Retrieved September 4, 2022, from https://www.pcgs.com/holdermuseum
Thanks that’s great info and I bid alot on different networks