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MikeMarotta

Chinese Counterfeit US Collectibles

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Chinese Global Exports of Mass Production Counterfeit Numismatic Collectibles

This is an underdeveloped topic of immediate importance. Like “blood diamonds” these goods are sold to westerners – typically to Americans – with disposable income. Like counterfeit consumer goods, these fakes deprive the buyer of the benefit of the bargain. Moreover, by US law, (nearly) all coins and bank notes produced by or for the U.S. government are at once the lawful obligations of the federal government as well as assets of the U.S. Treasury. In other words, a fake 1878 Trade Dollar silver coin is as counterfeit as a fake one dollar bill from 2008. Although complaints from the collector community have skyrocketed as a result of the immensely popular eBay auction website, the US government has been powerless to stop the flow.

Moreover, it is alleged that the federal government chooses to do nothing on two counts. First, the volume, however large, does not actually threaten circulating currency as defined by “M1” in economics. Second, and more to the point, the Chinese government holds perhaps more than $1 trillion in US government debt. Chinese citizens make money selling these goods and their activities do not contravene Chinese law.

However, again, under US Code Title 18 Chapter 25 Sections 471-491 the creation, buying, or selling not only of any current money of the United States but any current money of any foreign government is illegal.

eBay itself does, indeed, close down such auctions as are shown to traffic in counterfeits. However, their resources are limited in the first place. Moreover, anyone can come back in again under a new email address, that being the primary form of electronic identity. Furthermore, it has long been established that any seller can arrange an excellent rating in customer satisfaction merely through patronage via dummy accounts and other shills. Furthermore, payment of fees to eBay via its own PayPal service operations assures eBay of income from these sales. Consequently, these counterfeits continue to be marketed. As an important aside, I point out also, that these fakes encompass the entire matrix of numismatic collectibles, not just American coins. Rarities from Czarist Russia are a hot item these days.

http://coins.about.com/od/worldcoins/ig/Ch...erfeiting-Ring/

Inside a Chinese Coin Counterfeiting Ring

Photos of Counterfeit Coin Dies, Minting Machinery, and Fake Coins

By Susan Headley, About.com Guide

The sheer size, scope, and professionalism of this counterfeiting ring will astonish you. Although the working conditions often appear dirty and the minting equipment is old, this is obviously a well-funded enterprise that is run like a legal business in China. There is no law in China against making these "replicas" as long as they are sold as such.

See also:

http://coins.about.com/b/2009/11/11/u-s-mi...rfeit-coins.htm

Susan's Coins Blog

U.S. Mint Warns About Chinese-Made Counterfeit Coins

Wednesday November 11, 2009

The U.S. Mint has issued a Consumer Advisory warning citizens about the counterfeit U.S. coins that have been flooding into the United States from China. Although counterfeit coins are as old a phenomena as coins themselves, dating back to antiquity, the Chinese-made counterfeits represent an unusually dangerous threat because of the high technology being employed to produce many of them.

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Chinese Global Exports of Mass Production Counterfeit Numismatic Collectibles

This is an underdeveloped topic of immediate importance. Like “blood diamonds” these goods are sold to westerners – typically to Americans – with disposable income. Like counterfeit consumer goods, these fakes deprive the buyer of the benefit of the bargain. Moreover, by US law, (nearly) all coins and bank notes produced by or for the U.S. government are at once the lawful obligations of the federal government as well as assets of the U.S. Treasury.

Let the buyer beware. It has always been thusl.

Bob Kolker

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