Why do they always add "strict limit of 5 coins" on late night tv ads for worthless commemorative coins?

Question

Its obvious that the commemorative coins sold in TV ads are worthless pieces of metal. The may look pretty, but they will never be worth anything no matter how long you keep them. So why wouldn't the seller want to dump as much of this junk as possible? Why do they always say "strict limit of 5 coins." Is it because they want to avoid some government/securities regulation? Is it to give the illusion of scarcity? It has always bothered me as something that doesn't make much sense.

I was hoping for an answer based on authoritative knowledge such as:

a.) Its a government regulation thing:

5 or less (souveneir quantities) - subject to regulation by the FTC which only requires they not tell an provable and believable lie.

More than 5 (investment quantities) - subject to regulation by the SEC which would require registration and full disclosure (ie. a prospectus) with every sale.

or

b.) no laws apply its just pure marketing.

Answer 1

This is an old sales gimmick! People always want what they can't have. If you tell someone to only take 1 they take 2. If you tell them you cant buy more than 5 they want to buy 6. These places are really hoping that you at least pick up one so put the limit out there wishing you get more.

Answer 2

Call and order 10 coins and I am confident that they will sell them to you. They believe that most people will find their product more desirable if there is a limit on how many you can buy.

This is one of the oldest tricks in the book....and it must work.

As far as believing anything they say on TV, witness the recent $25 Million dollar fine to sellers of diet drugs. They lied right though their teeth to sell the diet aids and no one did anything about it until now. Of course a $25 Million dollar fine after selling hundreds of millions of dollars in drugs is not a bad deal.

Answer 3

It may be due to a limit places my the government -that would be my guess. But I wouldn't be surprised if they said that just to disillusion people on the rarity of the coin.