Fake Gold bullion bars and coins look like the real things. Because they are covered with real gold, they can pass tests done with gold testing kits, and can fool experts. And according to a growing number of news reports, more and more people are being conned into buying them.
Some recent news . . .
In “Universal Coin & Bullion Warns Consumers Against Influx of Chinese Counterfeit Coins,” a recent post on the Cision Blog, counterfeiting expert Michael Fuljienz writes, “counterfeit coins and fake `gold and silver’ bars manufactured in China are being sold to American buyers through fraudulent advertising on various social media platforms and by uninformed coin dealers.”
And a news report in May from KGMI News in Deming Washington, “Whatcom County Man Facing Charges for Selling Fake Gold Bar,” reports that a man bought a supposedly genuine gold bar and later tested it and found it was made of base metal that had been plated with a layer of gold. The crook who sold him the bar had advertised it on Craigslist – he said he had inherited it from his father.
Is There an Increase in the Sales of Fakes?
Frankly, we are not sure. For years, people have been selling and buying counterfeit items. The point is, that we do not want our customers to become victims.
What Are the Most Common Forms of Forgeries?
Gold bullion bars are the most common counterfeits because they are simpler to forge than coins are. Coins, by their nature, have images embossed on them. Some have decorative edges. It takes some skill to make them. Bars are generally easier to counterfeit.
How Can You Spot Fake Coins and Bullion Bars?
In many cases, you can’t because they are usually made of karat gold that has been plated over an internal blank that is made of iron or another non-precious metal. The only way to spot some fakes is to bore a hole into them or melt them down – and obviously, the crooks who are selling them are not going to let you do that.
Where Are these Items Being Sold?
They seem to be cropping up on online auctions and on local shopping sites. But there is no guarantee that they won’t also show up in pawnshops and jewelry stores – sometimes they might be offered by honest businesses that have been fooled by them.
How Can You Protect Yourself from Buying Forgeries?
Buy only from reputable, well-established dealers that have a guaranteed return policy. Forget buying from online auctions, local shopping sites, and popup stores that appear by highways – and don’t go to a parking lot somewhere to examine something that is for sale or to complete a purchase.
Don’t be fooled by legit-looking plastic packaging and presentation. The fact that your coin or bar is sealed in a convincing-looking plastic holder does not mean it is genuine. After all, those plastic sleeves cost nearly nothing – why wouldn’t a counterfeiter spend an extra cent or two on them?
Don’t be fooled by ridiculous stories that sellers tell. No, the seller is not offering you a special low price because he inherited that coin. He or she didn’t just get a big shipment of coins from an uncle in Asia. He is not selling Ukrainian bullion because a war is happening right now. If a story sounds ridiculous, it is ridiculous.
There Are Better Ways to Invest in Gold Right Now
Even genuine coins and bullion bars you buy from reputable dealers, in our opinion, are not the best investment you can make in precious metals today. Why? Because you will be buying the gold they contain at current trading prices, and you might need to hold them for a long time before you can make any money by selling them.
We are much more enthusiastic about gold scrap, because if you are an informed buyer, you can buy the gold they contain for half or less of what it is worth on the trading floor.
Interested? Intrigued? Call our precious metal refiners at 800-426-2344 and let’s talk about your scrap. People are making money – often a lot of money – by investing in gold scrap, platinum scrap and silver scrap. And you can be one of them.
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