Fake Gold Coins: Avoiding a Costly Mistake

At the time this article was published, Atlanta Gold & Coin met with someone who wanted to sell a Canadian Gold Maple Leaf coin. Canadian Gold Maple Leafs were among the coins Atlanta Gold & Coin commonly purchased then, so the transaction initially appeared routine. That expectation changed when the coin presented for review proved to be counterfeit.

At the time of publication, this was the first counterfeit Canadian Gold Maple Leaf coin Atlanta Gold & Coin had encountered. More frequently counterfeited examples included Chinese Gold Pandas, $20 Liberty Head gold coins, and Saint-Gaudens gold coins.

At the time of original publication, the article described the following: Because Atlanta Gold & Coin was familiar with Canadian Gold Maple Leafs, the counterfeit could be recognized immediately. People with less experience handling these coins, or gold coins generally, may not know how to authenticate them properly. The original article therefore set out several practical ways readers could use to examine gold coins.

Weight

Gold coins do not all have identical weights merely because they contain the same amount of gold, so knowing an authentic coin’s expected weight beforehand matters. One-ounce 24k gold coins, including Canadian Gold Maple Leafs, should weigh 31.1 grams. 22k gold coins, such as American Gold Eagles and South African Gold Krugerrands, weigh 33.93 grams. $20 Liberty Head and Saint-Gaudens gold coins weigh 33.43 grams.

At the time of original publication, the article described the following: The original article advised readers to bring a dependable portable scale to any appointment for buying gold coins. At publication, Atlanta Gold & Coin had used the American Weigh digital pocket scale for years and found it reliable. The article reported that the scale could then be bought for less than $10, making it a sensible purchase even for someone planning to buy only one or two coins. Confirming proper weight was described as a useful first step, but not a complete guarantee of authenticity.

Diameter & Thickness

Counterfeiters had become more sophisticated, the original article explained, and recognized that buyers were beginning to check gold-coin weight. Some counterfeits could therefore weigh correctly. But if the counterfeit was made from a metal other than the one used for the genuine coin, its diameter, its thickness, or both would be unlikely to match authentic specifications.

For that reason, the original article recommended investing in a caliper to verify that a coin’s diameter and thickness matched the maker’s published specifications. This caliper from Tekton was described as similar to the caliper Atlanta Gold & Coin used at publication. Both thickness and diameter should be checked: a counterfeit made from another metal can have the correct weight and diameter while still differing in thickness from the original.

Sigma Metalytics: Precious Metals Verifier

The Sigma Metalytics Tester was described as measuring the bulk metal within a bar or coin and reporting its purity percentage. Electromagnetic waves penetrate deeply into the coin or bar, so plating and surface details are disregarded while the principal body of metal is evaluated. The scanner was said to work through plastic holders and bags, allowing numismatic coins to remain in their protective cases.

The original article stated that this assessment caused no damage or other effect to the item. The scanner could test a sample in under one second without changing the coin or bullion product in any way. The process used no chemicals and did not cause physical damage during testing.

At the time of publication, these verifiers could be purchased directly from the manufacturer or through a 3rd party where and when available.

Go Fishing

For readers who preferred an all-in-one authentication tool, the original article suggested they might want to consider a fake gold coin detector from Fisch. These tools were generally sold in a wallet containing counterfeit-coin detectors for every denomination in a series. Although costlier than a scale and caliper, the article stated that a Fisch tester could last throughout an investor’s gold-coin investing lifetime.

The tool essentially offered three checks for a coin’s accuracy. It allowed the user to verify the coin’s weight and determine whether its specifications, including diameter and thickness, agreed with the applicable standards. For someone investing in just one or two types of gold coins, the article considered it probably a worthwhile purchase.

For someone investing in many gold-coin types, however, acquiring numerous wallets could become expensive. At publication, Atlanta Gold & Coin owned several wallets and reported no affiliation with the company.

Other Options

The original article noted that people seeking to verify coin authenticity had several choices, ranging from inexpensive tools to costly equipment. Among lower-cost approaches, it suggested comparing a prospective purchase with a similar coin already known to be genuine. The coins could be stacked together, measured, and weighed to see whether their specifications aligned. Another lower-cost option discussed in the original article was obtaining a rare earth magnet .

These magnets are very powerful and can attract nearly any magnetic metal, including metal present in small amounts. The article explained that the magnet could be applied to a coin or held just above it to check for magnetism. If the coin responded, readers were advised to walk away because it was counterfeit.

More costly and more dependable methods discussed for verifying the metal content of a coin being purchased included a precious-metals assay machine, such as this one from Olympus. At the time of publication, with a price likely above $1,000, the article suggested that funds were probably better directed elsewhere. Other methods, requiring differing levels of knowledge and expense, included a density or specific gravity test to check metal density, since metals have distinct densities and properties that cannot be replicated.

Conclusion

In summary, the original article said there was little concern when gold coins were purchased from a reputable coin dealer, but it recommended appropriate precautions in a private transaction or when working with a dealer lacking an established record. Although thousands of dollars could be spent to confirm authenticity, the article concluded that, for most people, an earth magnet, dependable scale, and caliper would eliminate 99% of counterfeit coins.

At the time of original publication, the article described the following: In 2014, buyers seeking 100% authentic coins at competitive rates could call call or email to schedule an appointment with Atlanta Gold & Coin Buyers in Johns Creek, GA.