Did You Buy Fake Gold?
Fake counterfeit coins and bars are everywhere – and it’s only going to get worse. Having just returned from an anti-counterfeiting training for precious metals dealers, we felt compelled to write once again on this increasing danger for precious metals buyers.
There are three significant factors driving the increase in gold counterfeits (and silver – yes, even silver is being counterfeited):
1. As precious metals prices continue to rise, the incentive for counterfeiters increases.
2. The cost of the technology used in producing fakes is decreasing.
3. Due to technology improvements, the quality of counterfeits has improved and therefore the volume sold is increasing for counterfeiters.
Don’t automatically assume that your items are authentic. As a national precious metals dealer we don’t automatically assume that your precious metals are authentic, and neither should you.
We have had clients who have purchased counterfeit gold and silver from Amazon, eBay and other internet sites such as Alibaba. Sometimes you have some recourse when you end up being shipped a fake – other times you are stuck. And remember, these counterfeits are getting really, really good.
Look at the photo below. The Chinese openly advertise that their fake 1 oz Gold American Eagle coin can pass the weight and diameter tests that many people (and dealers) rely on to authenticate their coins. As a dealer that offers an Authenticity Guarantee for our clients, we would never rely simply on a weight and dimension measurements as an authentication practice. We employ a number of different authentication tools including, but not limited to the
Sigma Metalytics Precious Metals Verifier Pro that makes four separate measurements to verify metal content in a coin or bar, More effective than XRF technology that only penetrates millimeters, the Sigma Metalytics measures surface resistivity, and the resistivity all the way through the coin at the same time.
As the Vice Chairman of the Industry Council for Tangible Assets (ICTA), John can attest that one of their principal endeavors is to both stem the flow of counterfeits, as well as educate the dealer community (and public) on their identification. ICTA has established the Anti-Counterfeiting Task Force (ACTF) that works with federal law enforcement, the Secret Service and virtually all of the major refiners and sovereign national mints.
You should deal directly with a reputable dealer with whom you have a personal relationship. And that dealer should offer a 100% Authenticity Guarantee as we do.
If you have an existing inventory of metals, have them tested using the latest state-of-the-art technology, which has advanced significantly in the past year. We offer Authentication Services if you want to have your metals tested. Click
“Read More” to learn more about our Bullion Authentication procedures.
