Avoiding Counterfeits in the Gold and Silver Markets
Posted by Brian Ford on May 06, 2013
Almost everyone who has looked at the gold and silver markets over recent years has seen reports that fake gold and silver products have largely infiltrated the market.
Recent reports including a 1 kilo gold bar turning up in the United Kingdom in March 2012 as well as the September 2012 reports that a slew of 10 ounce tungsten gold bars were both bought and sold in New York’s jewelry district.
There is astonishingly little information, however, on how the public can avoid the counterfeit bullion products.
Most assume it is far less likely, at least in markets with lower prices, that counterfeiters will produce fake silver coins when they would prefer producing counterfeit gold coins or gold bars. It is indeed more difficult to make high quality silver coins and match the weight of actual silver, possibly increasing the attraction of counterfeiters to gold products with a higher return.
Authorities take the counterfeit production of gold and silver coinage very seriously, which may again the incentive for counterfeiters to attempt to counterfeit the highest valued product, such as gold.
However, in actuality very high quality fake silver coins and small fake silver bars are being manufactured in high volumes in China. Reports indicate that fake American Silver Eagles are being struck and distributed, possibly priced as low as $0.50 per coin.
Mike Malonely, the author of the Guide to Investing in Gold and Silver, said as long as China allows these manufacturers to produce these fake legal tender coins, it is an act of war when one country counterfeits another country’s legal tender currency. He added the situation is very, very serious.
High quality fake silver coins can have the exact weighting and exact dimensions and will, to the untrained eye, possibly be passed off as bona fide bullion products. The importance of a certified and trusted bullion dealer with professional affiliations becomes very important under these circumstances, as they have long-time dealers that will avoid fake coinage and they will refuse to resell fake coinage.
Bullion dealers who guarantee the authenticity of every product they sell are doing better in the current market due to the fake bullion products in the market.
Tags:
Avoid Fake Gold and Silver, Fake Gold, Fake Silver
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