We hear about a lot of counterfeit items from China but this one has coin collectors on alert. Five coin-collecting organizations have banded together to issue a warning. The American Numismatic Association, the Industry Council for Tangible Assets, Numismatic Guaranty Corporation , Professional Coin Grading Service and the Professional Numismatists Guild say that Chinese-made counterfeit coins pose a significant financial threat to unsuspecting consumers. They believe that the public is spending millions of dollars on fake U.S. coins offered in online auctions and offline in places like flea markets and swap meets.

These types of copies are illegal to resell. The U.S. Hobby Protection Act, first enacted in 1973 requires manufacturers and importers of imitation numismatic items to mark them plainly and permanently with the word, "COPY" in accordance with the Code of Federal Regulations. Many of the replica items do not bear these markings. Thousands of coins described as "copy" or "replica" are listed for sale in online auctions every day often using images of the genuine coins. More than a million of these coins may have already been sold in the U.S.

The groups say that customers should not purchase any "replica" coins because they may be in violation of federal law and that they should be very careful about who they buy from. "Even during the recession, the United States rare coin market remains vibrant and active with an estimated $5 billion in annual sales. We urge collectors and investors to become knowledgeable and use common sense when buying," says Steven R. Eichenbaum, Numismatic Guaranty Corporation Chief Executive Officer.

For a copy of the booklet, What You Should Know Before You Buy Rare Coins, send $1 to the Professional Numismatists Guild, 3950 Concordia Lane, Fallbrook, CA 92028.

Has the economy really come to this, people using rare gold coins to pay for groceries? A woman in St. George, Utah went to the Zions Bank and handed over 14 gold $20 Double Eagle coins, saying she had groceries waiting at Wal-Mart, which would not accept the coins as payment. The bank teller gave the woman $280 but the coins were worth far more. The oldest coin was minted in 1875 and the most recent was 1927. Now the search is on for the woman because she could be getting a lot more money. Double Eagles can fetch thousands of dollars or even up to $1 million depending on the date. Even melted down the coins would fetch around $900 each at today's gold prices. It is assumed the woman did not know the treasure that she surrendered but she's in for a big payday now.

During Hanukkah, children, like the ones shown above, often receive gelt in the form of gold foil-covered chocolate coins. But some Israeli archaeologists got some gelt of their own this week when a British volunteer found a hoard of gold coins from the 7th century in Jerusalem on Sunday right around the start of the Hanukkah holiday at sunset. The hoard of 264 ancient gold coins minted during the early 7th Century was found in Jerusalem National Park. It is one of the biggest and most impressive gold coin finds ever discovered in Jerusalem. The coins were in a collapsed building that dates back to the 7th century, the end of the Byzantine period and they bear the face of Heraclius, who was the Byzantine emperor from 610 to 641. On one side, the emperor is wearing military garb and is holding a cross in his right hand. On the other side is the sign of the cross. The excavation of the building is continuing as archaeologists try to find out more about the building and how it was destroyed.

No sooner was the election over than floods of Obama commemorative coins started to be advertised. Just in case you were thinking that these coins might be a smart investment, the Professional Numismatists Guild, a non-profit organization composed of the nation's top rare coin dealers, is advising consumers that the coins honoring President-elect Barack Obama are not now nor will be later an investment deal. They caution that the coins should be considered only as souvenirs. In other words, buy them because you like them, not because you think they might be worth something later.

"All of the items we've seen offered so far on television and online are merely political mementos that certainly may be enjoyable as a keepsake, but typically will have little or no re-sale value later in the mainstream numismatic market," said Gary Adkins of Edina, Minnesota, Professional Numismatists Guild President. He warns that some of the Obama coins are layered or plated with a very thin layer of gold and that there is usually very little bullion value on plated pieces. For more info on what not to buy when it comes to coin collecting, check out the PNG website.

This one isn't going to win any points for fashion design in my opinion but as an investment it might be pretty smart considering recent gold prices. Yesterday Japan's largest bullion house showed off a gleaming gown which is covered with hundreds of gold coins. Pity the poor model wearing it. Mayuka, the model weighs around 110 pounds and the dress is close to 18 pounds. The dress was made using 325 Austrian gold coins issued to commemorate the Vienna Philharmonic and is valued at $275,000. There are no plans to offer the dress for sale.

It's everybody's dream to suddenly find a rare coin floating around in their pocket or purse and be an instant millionaire, and although that's always possible (not all the rare coins in the world are accounted for) it's pretty unlikely. Coin collecting is big business, both as a hobby and as a way to turn a profit. As a general rule the more rare a coin is the more it's worth, so what's the rarest coin ever? It's a debatable subject as not all experts always agree, but if the Double Eagle isn't at the top of that list it's sure near it. Back in 2002 the only Double Eagle coin left to be in private hands (or so everybody thought) sold for $7.9 million dollars.

Other rare coins include the Double Eagles smaller cousin the Quarter Eagle, and then the Brasher Doubloon, and the Eagle. More for fun then there's always the world's biggest coin, valued at $2 million+ (it's weights over 220 pounds and is the size of a pizza -- that would be a fun delivery!).

Good luck searching those pockets!

The news last week of a $10 gold coin that sold for $5 million is particularly interesting because the date on the coin is not the date it was minted. The Eagle coin is stamped 1804 but was created in 1834 at the Philadelphia Mint for Andrew Jackson as a diplomatic gift. This coin has some pretty fast appreciation, it sold for $1 million in 2003 and then for $2.47 million in 2005. There are just four of them out in the world.

I wonder what is it about coins that makes the prices rise. In part it is because they are a tangible record of history but I suspect the real reason is something else. As David Albanese, the president of Albanese Rare Coins, the dealer of the coin, reported both the buyer and seller are "northeastern United States entrepreneurs who have been collecting coins since they were young boys." I think this is why some coins sell for such high prices. Many other collecting hobbies take root after one is established in the world, wine, art, jewelry and watches, the love of those often develop later in life. But so many young boys and girls are given coins as gifts, thereby establishing a lifelong love of numismatics.

[Thanks, Lana]

[Thanks, lana]

People buy and sell expensive things all the time, but here's an interesting story of how a dime worth $1.9 million dollars traveled across the country from its old home in San Jose to its new home in New York City. Who knew it was as simple as a guy in flip flops carrying it there in his pocket? Well I'm sure that guy, John Feigenbaum, would say it was anything but simple. He dressed in flip flops so he wouldn't attract undue attention, tried to fly coach (but got upgraded to first class anyway), and didn't sleep a wink on a red-eye flight for fear of losing the precious cargo somehow.

The 1894-S dime is one of nine known to have survived from only 24 minted in San Francisco that year. Of course the new owner, who is choosing to remain anonymous, has no intentions of doing anything with the dime other than keeping it stashed away in his vault as an investment for the future -- after spending a few minutes admiring it, of course.

The US Mint is aiming to target both collectors and investors with their newest release: a 24-karat gold coin. It contains one ounce of 99.99% pure gold and is cast as a tribute to the popular buffalo-head nickel that was in circulation during the 1930s. The coin will be minted as a $50 piece, though it will be worth, and sold, for more. Two versions of the coin will be available: a bullion coin for investors, which will be sold to authorized buyers for coin shops, banks and other financial institutions, and a proof coin, aimed at collections. The proof coin has a higher quality strike and finer finish, both of which will add to the physical appeal of the coin over simply the gold it is made of. 300,000 proof coins will be made and sold at an initial price of $875 per coin.

Interested buyers can purchase the proof coins beginning Thursday by going to the US Mint's website.