Just as a difference exists between black and white, a difference also exists between the “letter” of the law” and the “spirit of the law.” One can be within the “letter of the law,” yet outside the “spirit of the law.”

A recent Coin World article, titled “Silver Anniversary set sells out in hours” (Nov. 14 issue), referenced practices that are prime examples of this scenario. In said article, writer Paul Gilkes makes reference to the practice of circumventing sales limits. Gilkes stated, “Although the Mint imposed a five-set-per-household limit on the sets, applicable to collectors and dealers alike, some buyers apparently circumvented the limitation.”

He went on to note various techniques that were used to obtain more than the per-household limit. Some methods included using different credit cards and shipping addresses. The most blatant example of circumventing the sales limit was the one used by Modern Coin Mart in Florida. According to Gilkes, two days prior to the opening of sales MCM “sent an email Oct. 25 to customers on their subscriber list offering to pay $360 for each set obtained, or a $60.05 profit per set.”

While Modern Coin Mart did not violate the “letter of the law,” I feel they violated the “spirit of the law.” The “letter of the law” is simply that there is a five-per-household limit. The “spirit of the law” is basically a five-per-customer limit. By having others purchase for them, Modern Coin Mart is the actual customer, thus, far exceeding the limit set by the Mint.

Many readers may not see it that way. One could argue that Modern Coin Mart simply made an offer and did nothing wrong. I see the practice little different than that of the mother who sends each of her three children into the grocery store to buy a box of laundry detergent that is on sale at $1 per box with a two-per-customer limit. Assuming the mother purchased her limit as well, with the purchases of her children, she ended up with a total of eight boxes. The mother was the “real” customer as the children would certainly not have purchased the laundry soap on their own. The mother obtained six more boxes than she was entitled to by “creating” phantom customers.

To those who excuse such practices, I must question their moral compass. Just because something is legal does not make it morally proper. Would those who excuse such practices also excuse the practice of ticket scalping?

That being said, I have no issue at all with those who purchase such items for resale as long as they honor the purchase limits. Who would not be interested in an honest profit? However, when one “plays the system” in the name of a larger personal profit, that denies others the opportunity to make an honest profit or to add to their collection without having to pay a secondary market price.

Modern Coin Mart has every right to purchase what they wish from whom they wish. Had they advertised their buy price after the American Eagle 25th Anniversary Silver Coin sets were sold out, I would have no problem with that. However, in my opinion, when the customer is encouraged to purchase something, prior to its going on sale, on behalf of the dealer simply to circumvent purchase limits, that is wrong.

I would now like to ask a question. Would Modern Coin Mart have asked their customers to purchase the Anniversary sets for them, prior to the sale by the Mint, had there been no limit as to the number they could purchase? The answer is quite obvious. That being said, it is quite clear what they were doing.

In conclusion, while the actions I have addressed are legal, they are nothing short of greedy. As I am not a collector of silver American Eagles, the actions of Modern Coin Mart, and others who acted in a similar fashion, did not affect me. Unfortunately, not everyone can say that.

Richard L. Francis Jr. was introduced to the field of numismatics at a young age by his father, who had been introduced to the hobby by his father, Ira. Francis is continuing this pattern as he has introduced his children to the hobby as well. His favorite coins are Indian Head cents and 5-cent coins.