Even though gold coins and bars may have stamps, purity marks, and serial numbers, this does not guarantee that the bullion is genuine gold. For example, complaints about low-quality gold goods with falsely high fineness ratings have been made. Furthermore, fake gold coins and bars with gold plating are loaded with heavy metals like lead behind the plating. So how can you tell whether they are gold fake coins?
You must verify the validity of the gold if you want to figure out the true worth of the bullion gold coins or bars you're purchasing. Therefore, we have prepared this guide to protect the money you've invested and ensure that you receive the exact amount of gold for which you have paid.
Even before the first currency appeared in the form of gold coins, which Lydian merchants made around 700 B.C., digging for gold was a popular practice that dates back thousands of years. These were essentially stamped lumps of a 63% gold, 27% silver alloy known as 'electrum.' By the reign of Croesus of Mermnadae, the final King of Lydia (570–546 B.C. ), Lydia had collected an immense hoard of gold, so this consistent unit of value certainly helped Lydian merchants in their diverse successes. The phrase "rich as Croesus" is still used to describe those who are incredibly wealthy today.
Gideon B. Smith patented the first false gold coin detector in 1853, which shortly became a standard piece of equipment. Before this, individuals would do basic inspections to see if a coin was made of real gold or just a poor base metal. This involved spitting on the coin and then rubbing it against a rough surface to remove the gold finish and reveal the base metal inside.
Although simple, many of these tactics worked because counterfeit methods were simple too. Fake gold coin detectors offered testers a significant advantage in the fight against fakes, and they pulled that advantage for many years. But it didn't take long for the forgers to turn the tables.
There are also narratives of fake gold coins dating back to 600 BC when real gold coins' edges were trimmed and used to cover up base metal parts. Similar methods were used during the middle ages, but it wasn't until modern times that counterfeit coins became very common. The legendary 1907 Double Eagle coins, issued by the US Mint, caused a stir when it was revealed that they were being counterfeited on a large scale. In recent years, gold fake coins have also been used in warfare, with countries targeting and attacking their enemy's economy.
A few years ago, it turned out that forged gold was being sold in Manhattan, New York. A buyer purchased numerous 10-ounce bars worth $18,000 each and decided to drill into them. Unfortunately, he found that the genuine gold content of these bars was only $3,600 and that they had tungsten cores.
The story's most unsettling aspect is that the bars had genuine serial numbers and came with valid documentation. Unfortunately, the fake gold bars were produced by hollowing out real gold bars, taking a sizable portion of the gold, and leaving behind something that looked genuine, legitimate, and precious but was obviously fake. Fortunately, there are steps you can take to ensure that this never occurs to you and ways that you can verify whether the gold you have is genuine or not.
Investors tend to come across terms like "1 oz," "half," "1/4," and "1/10" when looking over various options for gold coins. If these terms are followed by "oz," they relate to the weight of the gold coins, or, in the case of fractional coins, they imply a smaller coin than the full sovereign. The Half Sovereign is a common example of a fractional coin.
Today, matching small 1/2 oz, 1/4oz, and 1/10 oz replicas of the most popular 1 oz bullion coins are also often made. Collectors who want to own every size of the coins released each year or investors looking for lesser denominations of their favorite gold coins can find this appealing. However, it's important to be aware that fractional coins get more expensive per gram the smaller they get. Therefore, a 1-ounce coin will have the best "value," while the tiny tenth-ounce ones are quite costly.
Counterfeiters have tried defrauding and tricking their way to easy money for thousands of years. For example, ancient alchemists tried to transform base metals into pure gold to profit from cheap, worthless materials.
Knowing what you're buying and getting exactly what you pay for is important for investors because nothing can ruin a gold investment faster than learning that the gold you purchased wasn't as genuine as you believed and that the seller who advertised it to you did not act in your best interests. Therefore, follow these tips to spot fake gold coins:
Checking your coin's size and weight is all that is required for this test, which usually applies to bullion coins. Bullion gold coins are produced in accordance with a set of prerequisites, offering you a benchmark with which you can determine the reliability of your gold. One of the densest metals on earth, gold has extraordinarily difficult-to-replicate physical properties. As a result, any metal utilized for replicating a gold coin will probably be considerably less compact, and it will take more of it to imitate an exact quantity of gold.
You can perform this test at home, and it is also extremely simple. The fact that gold is not magnetic, unlike the majority of metals, means that a magnet won't attract a genuine gold coin, bar, or jewelry. Use any decently strong magnet can be used to test this at home.
The 'ping' test, as it is widely called, allows us to single out fake gold coins by hearing the sound it produces when struck. When hit, precious metals produce a long, high-pitched ringing sound as compared to base metals, whose sounds are duller and somewhat shorter.
Another quick and simple technique to test your gold is to drag it over a ceramic plate. Then, all you have to do is lightly touch your gold against an unglazed ceramic plate. Once you've done this, if you can see a mark of gold on the porcelain, the gold is genuine. But if the mark is black, it's a fake.
A professional can also check and grade your gold. In the case of gold coins, this grading can even increase the coin's value. However, since these gradings are expensive, they are not practical if an item is small, common, or inexpensive or if you are pretty sure it is fake.
Best Gold Bars to Buy for Investment
Even though the market offers a risk of gold fake coins, it is also true that adding real gold assets can diversify your investment portfolio with many financial benefits. Here are some of our recommendations for real best gold coins to buy:
Gold has always been valued and in high demand, and thus, people have always tried to create it themselves through the practice of counterfeiting. Therefore, we recommend you always purchase your gold and silver bullion from a reputed dealer like BOLD Precious Metals to minimize the risk of spending your money on fake gold coins. Furthermore, we can ensure that the gold you are buying is real since BOLD's gold bullion bars are created by refiners that have received LBMA approval. Furthermore, all of their coins are rigorously inspected for weight, metal content, and authenticity.
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