The newspaper story sounded like a great deal: "Free armored safes being doled out to the public," the headline said. And they're stocked with "4,100 brilliant, never-circulated U.S. Govt. issued coins that by law will never be minted again."Wow.
The story even featured a picture of a delighted senior from Perry Town, Ohio taking delivery of her waist-high steel vault from the very official-sounding "World Reserve."
Problem is, the item wasn't a news story. It was a full-page ad that ran in the Sentinel and in papers across the country last month. And, of course, there was nothing really free about the offer.
To get the safe, you have to pay for 19 monthly shipments of those ultra cool coins -- you know, those "brilliant, never-circulated" ones that "will never be minted again." But that's got to be a bargain right? I mean 4,100 super coins for the low, low price of $98 a month (for 19 months).
Let's do some math: $98 x 19 months = $1,862. Plus safe shipping costs.
And for that, you get 100, $1 coins (total value $100) and 4,000 nickels (total value $200). Hmm. Looks like you're paying $1,862 for $300 in coins and a "free" safe.
Don't take my word for it, I don't know anything about coins. Listen instead to Robert Hoge, curator of North American coins and currency at the American Numismatic Society.
"This basically just looks like a crafty method for selling safes, taking advantage of the feeling of financial panic that many people have. It seems ... to be clearly geared to take advantage of frightened elderly people."
I love a numismatist who cuts through the crap.
Here's the thing: When the economy sinks, a lot of people do a lot of things to separate you from your money. Fear is a terrific motivator and the ad here deals it out in spades. It uses the word "hoard" -- as in your "personal hoard" of coins -- a dozen times. It asks, "Are banks safe?" and answers, "Well, maybe."
It talks about the "frantic demand" for coins and promises that the offer "ends public worry for those who rush to buy up hoards of brilliant, never-circulated U.S. Gov't issued coins ..."
But my favorite part is the quote attributed to the elderly customer in Perry Town, Ohio (a place I couldn't find on Google, by the way) who says:
"I wanted this whole hoard of U.S. coins as a nice nest egg. I'll also set aside some of my hoard for my Grandchildren. Now I don't have to worry about where to keep my important papers and my Grandfather's gun ..."
Source: blogs.orlandosentinel.com
