Coin collectors have multiple options when it comes to tracking down and purchasing rare and valuable coins, ranging from local coin shops and international dealers to auction houses and e-commerce sites like Amazon and eBay. No matter where you look, it’s important to make sure the coin you’re interested in is legitimate and not a fake being sold by scammers. You should also double-check the price to see if it’s in line with what the market says.
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This topic came up in a 2023 forum on the Collectors Universe website regarding an eBay listing for “‘TEDDY ROOSEVELT’S Panama Penny’ 1920d Lincoln Wheat Cent/PCGS -Discovery Coin!” The listed price is a whopping $990,000 (or best offer).
One commenter on the Collectors Universe forum wondered if the eBay listing is “even a real coin or if it’s one of those made up things.” If it’s real, the commenter wondered, then who would spend that much money on eBay without checking it out?
It is a valid question considering that nearly all rare coins priced that high are sold by licensed auction houses and coin dealers that are well known in the collectors community.
Red Flags To Consider When Hunting Rare Coins
The 1920 Lincoln Wheat penny is especially desirable for collectors because of its age and subtle differences that set it apart from other varieties, according to the JM Bullion website. Despite its value to collectors, JM Bullion puts its highest price at around $40 — which is exactly $989,960 less than the eBay list price mentioned earlier.
Obviously, a price difference that big is a red flag. Here are four other rare coin red flags to look for, according to the CoinValues.com website:
- The seller has a lot of negative reviews.
- The coin listing does not include a picture.
- The coin is not certified by a reputable grading firm such as the Professional Coin Grading Service, American Numismatic Association Certification Service, Sovereign Entities Grading Service, Numismatic Guaranty Company or Independent Coin Graders.
- The deal sounds too good to be true, such as a $1,000 coin selling for $200. Or, the price sounds way too high — such as a $40 coin being listed for $990,000.
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Lincoln Penny Origins
It never hurts to gather some background surrounding the coin you’re seeking. The Lincoln penny, for instance, had its beginnings in 1907, when former President Theodore (aka Teddy) Roosevelt was posing for a portrait for a medal that would be awarded to workers who built the Panama Canal, according to the CoinTalk website.
As CoinTalk explained, “Roosevelt thought that it would be appropriate to present a presidential award to all of those who had worked on the project for a year or more.” During his conversations with the artist, Victor Brenner, Brenner mentioned that he was working on a Lincoln plaque and medal. That conversation eventually led to the first Lincoln penny being issued in 1909.
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This article originally appeared on GOBankingRates.com: Is the $990,000 1920 Lincoln Wheat Penny Legit? 4 Rare Coin Red Flags
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