Retailers regularly take a gamble on buying merchandise that they hope to resell at a profit. They try to follow trends. The key is timing ; “strike while the iron’s hot” surely applies. During an election year, the iron is molten, red hot.
Every four to eight years, online and mail order retailers are given a guaranteed gift – items that are almost sure to be popular and sell out. It also involves an inherent belief that most anything is collectible and, in turn, valuable.
I refer to commemorative medals or tokens produced honoring a US president. This year, with the voting tallies so close, sellers of such items are taking advantage of the popularity or – given the events in the nation’s capital the first week of this year – the notoriety of politicos. Commemorative items for both Biden and Trump are being promoted. Given the vast support of both men, interest is sure to be high. So should be skepticism, on multiple levels....
An ad for a new “Joseph R. Biden Proof Coin” states it is a “Limited Edition Proof richly plated with 99.9% silver.” Those interested in the “collector’s item” are encouraged to “act fast” to receive one for just $9.99 (plus $4.95 shipping) – touted to be 78 percent less than the regular price of $39.99.
Another ad is selling a proof “MAGA Movement Commemorative Coin Set.” The ad states it is a, “…remarkable collection of 24K gold-layered commemorative coins.” It consists of 12 round mementos with color images of Donald Trump. Each salutes a different aspect of his time in office including, Borders; Military; Health Care; Law Enforcement; American Energy; Fair Trade and six others. The price for the 12 is $99 – advertised to be reduced from “a value of $449.” Buyers also receive a “free” Presidential Wristwatch said to be worth $49.95.
Fans of either man may find these compelling – something emblematic of a shared belief. Regarding potential future value, as I said, a healthy dose of skepticism also needs to be shared.
First, often the sellers have the word, “Mint” in their name. There’s nothing illegal about that. It’s just that many of these companies aren’t a “mint” in the sense that we know such as the US Mint.
Second, these and many other sellers of such items advertise the items as “coins.” I’ll say it again and again…they are NOT coins. By definition a coin should have a recognized denomination in trade to be “legal tender.” Ergo, these are tokens/medals. Few coin collectors have interest in such items.
Third, the words, “plated” or “layered” should be in massive, bold letters referring to the silver Biden or gold Trump tokens. The micro-coating of a precious metal over the base metal of the item is so whisper-thin it has virtually no perceptible monetary value of note.
Fourth, be aware of possible subscriptions. The fine print in the ad for the Biden token notes that buyers will, “…want to purchase additional issues at the regular price.” The online version of the ad notes it is part of a “collection” to be issued,” sent once or twice per month with future “coins” to be sold at the regular issue price. That would be $39.95 – each, plus shipping.
This isn’t to say not to buy the items. We live in a country where we are free to do what we wish with our hard-earned money. The issue involved is expectations of future value.
A glimpse at tokens, medallions or souvenirs from past elections is an ideal indicator. Manufactured curiosities such as colorized medallions have a very limited life. How many people are currently clamoring or paying top dollar – if anything – for a George Bush or Bill Clinton “coin.” How about, “none”. No coin dealer with whom I spoke has any interest in these. They don’t want to buy them much less pay a premium. After a few years, my guess is no one will give these a second look, much less pay anywhere near what they are now selling for.
So, a word to the wise. Be happy or unhappy with the election results. Just think twice before adding monetary angst to an already divisive election year.
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