One ounce Gold BU Coin received with significant scratch/gouge?

[Paulo]

Hello,

I have recently received a new one once gold BU coin (I considered it as bullion when purchased).

It had an increased premium, 10% The going rate was 8 - 10%, so ok. It's one of the music legends BU coins limited mintage of 2500.

On inspection there was a significant scratch/gouge, as can be seen from the photo. I realise it is basically a bullion coin and the chances are it will come with scratches, but this is more than just a scratch?

I intend trying to get a replacement (reputable dealer). Although I realise strictly speaking they don't have too.

Thought I would run it by you all. Is this an unreasonable request? realise this is a bit of a grey area, but I was somewhat disappointed when I checked it.  

Thanks. 

   

[HelpingHands]

They should swap it.  It's just a pain posting it back.

They might claim coins are just bullion but strangely they charge different amounts for different 1oz bullion coins.

[Midasfrog]

The mark looks like it was made during the striking process. Some material contaminant on the dies . I had a 1oz Queens Beast gold coin with a piece of string pressed into it , managed to pull it out 😄 , it was probably from a cleaning cloth or rag but really pressed in.

Think I would just keep it and not worry to much better than having marks on the Queens face 👍

[Abyss]

@Paulo that coin should have never been sent out to you in the 1st instance from a reputable dealer and when the dealer received the coin should been sent back to the mint for a replacement without going out to a customer. I would understand the mistake if it happened if you bought a full mint tube of these coins but you bought assume only the single coin. Choose to accept it only be worth spot maybe even 1 percent below spot on resale to a private sale or melt if sold back to a dealer. Whatever premium the coin has is lost due to significant scratch.

@Midasfrog that is not a hairline scratch on the queens neck that sometimes you can get due to mint shipping the coins in tube of 10 and can be argued if it is acceptable bullion condition. That gouge IMHO spoils the coin.

[Stuntman]

I agree with @Abyss 🙂

I would send that back for a refund or replacement if it were mine.  Or just treat it as (relatively expensive) bullion and sell it in the future once the gold price goes to the moon.  

Basically, I would decide whether or not I wanted to go through the hassle of returning the coin, and this would depend on how much of a dent in my finances it would be if I just ordered another one.

[Midasfrog]

A bullion coin is mass produced the same as coins in circulation . At the end of the day Bullion gold coins are there to store wealth and sell for spot / melt price when the time comes. Any marks do not make a lot of difference when it goes into the melting pot 🧐

[Abyss]

1 hour ago, Midasfrog said:

A bullion coin is mass produced the same as coins in circulation . At the end of the day Bullion gold coins are there to store wealth and sell for spot / melt price when the time comes. Any marks do not make a lot of difference when it goes into the melting pot 🧐

I bought the following four bullion coins back in November 2018 from reputable dealer. I had video recorded the unboxing and the coins were sent in the same plastic sleeve. I raised a complaint and provided my video evidence to the bullion dealer and had my coins replaced at their expense in due course. Considering what the premium value these coins have risen above and beyond spot I am glad I did not settle for initial bullshit the dealer tried which was to say that these are simply bullion coins. A brand newly mint brilliant uncirculated coin should come from the dealer well packaged and individually in capsule/plastic sleeve free from any rim damage or major scratch/gouge. At most it may have a hairline scratch on Queens side of the coin and is acceptable bullion condition.

[Hunter87]

Have you reported this to the royal mint? I’d be interested to hear what they have to say about it.

[Coolsmp]

10 hours ago, Midasfrog said:

A bullion coin is mass produced the same as coins in circulation . At the end of the day Bullion gold coins are there to store wealth and sell for spot / melt price when the time comes. Any marks do not make a lot of difference when it goes into the melting pot 🧐

As @Paulo stated this was a limited minted coin so hardly mass produced.

[Midasfrog]

2 minutes ago, Coolsmp said:

As @Paulo stated this was a limited minted coin so hardly mass produced.

Proof sovereigns / coins are also limited mintage but still go to the melting pot. If you purchase a bullion or proof coin with a high premium it is the Royal Mint and the dealers who are gaining . The premium will be very difficult to recover when the time comes to sell on the secondary market.

[Paulo]

Thanks for the replies,

The comments made by Abyss echoes my own thoughts, totally agree.

The main reason I purchased the coin was - I liked it, wanted to add another ounce of gold to my stack/collection, it's a limited addition, and I feel there is a possible upside in premium long term, like the early Queens Beast. As Abyss says with this coin I am only likely to get spot. I think anybody would be disappointed if they received this coin! 

I see little point in contacting the Royal Mint.

Will let you know the outcome.   

Thanks.

 

 

[Paulo]

Just want to say I received an immediate response from the company concerned, they phoned me and we had a good chat, was instantly offered a replacement coin, and an apology!

It was a simple error/mistake on their part. I always think you can gauge the principals behind a company in how they deal with such a situation, and they came out with flying colours! It certainly gave me an insight into the difficulties they have to deal with.

My intention behind the post was not to be critical. I just wanted to see what you guys thoughts were.  Realise this is a subjective area.

Anyway It's a big thumbs up!  

[Coolsmp]

Nothing wrong with being critical as long as its constructive criticism dealers and businesses should welcome this as feedback improves their practices or at least it should do.