"1000 Swiss Francs in a pile of 5 CHF coins, studio shot"
Precious metals have always been a smart investment. Since gold broke the $1,000 mark per ounce in 2009, though, things seem to have remained in high gear. And once silver nearly hit $50 per ounce in 2011, an influx of fake silver coins found their way to the market.
In fact, the problem has gotten so bad that the Anti-Counterfeiting Educational Foundation (ACEF) released an alert when the new 2021 Morgan Silver Dollar was issued. The warning was stark and direct:
“During the past couple of weeks, we received an increase in reports of counterfeits due to silver’s volatility and especially the ongoing interest in the Morgan silver dollars market. The Chinese are heavily marketing fake silver dollars via Facebook.”
When silver coins become more popular, counterfeiters create more fake silver coins. And considering the recent shortage in the U.S. Mint, it’s no wonder there’s a current influx in counterfeit coins. Fortunately, there are several ways you can avoid becoming a victim.
One of the biggest steps you can take for avoiding counterfeit coins is to know your coin. While counterfeiters certainly have improved their craft over the years, most still can’t make exact copies of government issued coins. That’s why you should know the dimensions of any coin you buy.
If you’re looking to buy American Silver Eagles, for instance, knowing they have a diameter of 40.6 mm is important. It also helps to know the thickness of the coin is 2.98 mm. If you encounter one of these for sale and the dimensions are off, you’ll know it’s 100% fake.
Did you know that only 60% of coin dealers use professional equipment to identify forgeries? This means four out of ten dealers just go with their gut. That explains why a vintage coin — identified as fake by several dealers — recently got valued as an authentic $5 million piece.
If professional coin dealers can make such a mistake, it’s easy to imagine a pawnbroker doing the same. While you may get a great deal at a pawn shop, you may also encounter convincing fake silver coins. Shop at your own risk.
Authorities have noticed a surge of counterfeit silver coins flooding the market since at least 2016. And with recent spikes in demand, it’s understandable that the problem has only worsened. In fact, the issue is so pervasive that a seller may not even realize they’re offering a fake coin.
Unfortunately, it’s not typically the “unwitting middleman” you’ll run into when dealing with fake silver coins. Being able to buy realistic counterfeits off foreign websites for as little as $1 is just too much temptation for some people.
Fortunately, there are several red flags you can watch out for when dealing with criminals. If you notice any of the following behaviors, it’s best to walk away immediately:
Do any of these seem like the actions of an honest seller? These behaviors are major red flags, and when you see them, there’s a good chance that fake silver coins are involved. Unfortunately, sellers who actually believe their items are legitimate will not display these warning signs.
That’s why it’s so important to take safety measures even when the seller seems honest.
We’ll discuss a variety of easy testing methods in the next section, but none of them come close to the accuracy of professional analyses. Fortunately, you don’t have to pay an expert to perform these. You can actually purchase a variety of gadgets that can help identify fake silver coins.
The one disadvantage to these offerings is price. For a reliable testing method, you’ll typically end up paying at least $1,000. And when you come across cheaper offerings, it’s usually for gadgets that have the potential to damage your coin during the test.
Regardless of their disadvantages, though, there’s a reason professionals use these machines. They work, and that’s often justification enough.
Unfortunately, professional testing machines are outside of most folks’ price range. For many of us, this eliminates their use as an authentication measure altogether. Luckily, there are a variety of easy ways you can spot counterfeit silver coins. Even better? These methods cost next to nothing.
One of the simplest tests you can do to avoid fake silver coins is running a magnet over the item. Silver is not magnetic, so there should be no reaction. Consider buying a neodymium magnet or something just as powerful. More powerful magnets will provide better results.
If your coin reacts at all, it’s because it’s fake. Of course, many other metals will behave in the same way. This means you shouldn’t use the magnet test to confirm the authenticity of a coin. Still, it’s a simple way to eliminate certain fake silver coins easily.
Did you know silver conducts heat better than any other metal out there? Copper gets all the attention for thermal conductivity, but this is only because it’s inexpensive. This makes an ice test one of the quickest and simplest methods of spotting counterfeit silver.
All you have to do is place an ice cube on your coin. If the silver is real, the ice should begin melting almost immediately. If you notice a slow or no reaction, there’s a good chance you’re dealing with a counterfeit.
Many people discovered their first silver coins in pocket change due to sound. If you take a 1960 silver Washington Quarter and tap it against something, there’s a distinct difference from the sound of a modern quarter. The high-pitched ring is a dead giveaway.
To perform this test, simply hold a silver coin on your fingertip and tap it with another coin. A high-pitched “ping” is indicative that the item is legitimate. Of course, this is another test that you should only use to eliminate fake silver coins or as a backup verification method.
If you head over to eBay and search “silver coin,” you’ll get hundreds of thousands of results. Nearly 100% of these sellers will offer you a coin at a decent price. How many of these coins are authentic? Definitely not 100%.
The best piece of advice anyone can offer for avoiding fake silver coins is to work with a reputable dealer. As this term indicates, these dealers have a reputation to uphold. This means they typically go to great lengths to ensure you’re getting the real deal.
Unfortunately, even trusted local dealers may not fall into this category. That’s because — in many cases — their inventory doesn’t come directly from respected mints. This isn’t the case at Silver Gold Bull and other reputable online precious dealers.
Whether you’re buying silver bullion bars, coins, or any other form of the metal, you want a dealer that works directly with the source. This is the best authentication method you could ever hope for.
Using dealers whose inventory comes straight from reputable mints is ideal. Of course, maybe these dealers don’t have what you’re looking for. Or, perhaps you’re in a shop and found something you can’t live without. In these scenarios, online reviews are your friend.
Whether you’re on eBay or in a local shop, you can find reviews on a dealer. And even better than that, you can find them right on your phone. Great online reviews don’t guarantee you’re not getting a fake silver coin, but they certainly can steer you away from shady merchants.
One of the easiest ways to ensure an item’s authenticity is to buy a certified coin. These typically come encapsulated either from the mint or from a coin authentication and grading service. These “slabs” protect the item and include vital information on the coin.
Unfortunately, producers of fake silver coins have also started counterfeiting these authentications. This is why you should only buy certified coins from reputable dealers. You can also call the authentication service directly and verify the item’s registration number.
Investing in precious metals can be a rewarding experience. Unfortunately, buying even one counterfeit item can drive someone away from the bullion market. This is a disheartening result considering how easy it is to avoid counterfeit coins.
Out of all these tips, though, purchasing from a reputable dealer is the most important. Even professional coin dealers can make mistakes. So, while you may think you’re prepared, the risk of buying a fake silver coin still exists. You can avoid this risk with Silver Gold Bull.
Visit our Silver Bullion Products page to see all we offer. Not only will you find the best price on the internet, but your purchase will come with a guarantee of authenticity. Because when you’re investing in precious metals, you deserve peace of mind.
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