In fact, it is an old, old story that there is counterfeiting of almost everything under the world, gold, bullion, coins, bars and precious metals in general are not exempt. It’s an open secret of fake coins emanating from Asia and tungsten-filled, drilled gold bars.
In view of the above, you should exercise due care and diligence when investing in gold bars so as not to throw your money into the River Tame (London). The strategies highlighted will go a long way towards ensuring that you are buying real gold if you strictly adhere to them.
1. Reputable and knowledgeable distributors. Actually, your first and best precaution and safety is to buy gold from the top professionals in this business. The main exponents in this business have high quality standards and internal control/selection mechanisms backed by time-proven customer-oriented service provision.
In the US and Europe, there are many gold bullion dealers with clean records, some are BBB certified. To mention just a few, we have merchants like American Bullion, Money Metals, Regal Asset, Capital Gold Group, Gold Direct, etc.
2. Magnet test (gold and silver). These are non-magnetic substances, coins and gold slide easily on a strong magnet, while counterfeit coins and gold stick to a strong magnet. It should be noted that this test must be used in conjunction with others, because the base metal used in some counterfeits is non-magnetic.
3. Acid test. Inexpensive acid test kits can be used on gold and silver. Simply apply a drop of this acid on the gold sample, if the color changes, it means that it is not authentic.
The bullion value of the metal content is more important and not the beauty, that said, you still have to be very careful when applying the acid; otherwise, discoloration can drastically reduce the value (price).
4. Weight and size. Actually, gold and silver are super dense metals, much denser than the base metal. Therefore, all accurately weighed counterfeits will either be thicker in diameter or underweight than necessary to have the correct diameter.
Alternatively, an inexpensive gauge or jeweler’s scale can be used to confirm the weight, diameter, and thickness of these precious metals to ensure they conform to the specified standard.
5. Ping or sound test. Real gold and silver coins rattle when struck with another. The fact is base metal coins sound duller and the ring is shorter, you can balance the coin on your fingertip and tap with another one to hear the sound.
Investors using iPhone can install the Coin Trust app, while Android users can also install the Bullion Test app. The iPhone can be used to test the most common gold and silver coins, turn on the speaker. Place the phone nearby and easily spin the coins on a hard surface. Similarly, after installing the bullion quiz app, choose coins from the list and press the microphone button, balance the coins on your fingertips and hit another coin, your result will be instant and accurate.
6. Thermal conductivity (silver). Silver is one of the best conductors of thermal energy. You can test silver bullion using an ice cube, apply heat when you place the ice cube on top of a coin or bar, you will instantly see the silver melt and cool quickly when removed from the heat.
