In fact, it is an old story that there is counterfeiting of almost everything under the globe, gold, bullion, coins, bars and precious metals are generally not exempt. It’s an open secret of counterfeit coins emanating from Asia and pierced and tungsten-filled gold bars.
In view of the above, you must exercise due care and diligence when investing in gold bullion so as not to throw your money into the River Tame (London). The strategies highlighted will go a long way in ensuring that you are buying real gold if you strictly adhere to them.
1. Accredited 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 of this business have a high quality standard and internal control / selection mechanisms backed by time-tested customer-oriented service delivery.
In the US and Europe, there are many clean track record gold bullion dealers, some are BBB certified. To mention just a few, we have merchants such as American Bullion, Money Metals, Regal Asset, Capital Gold Group, Gold Direct, etc.
2. Magnet test (gold and silver). It is a non-magnetic substance, coin and gold slide easily on a strong magnet, while fake coins and gold adhere to a strong magnet. It should be noted that this test should be used in conjunction with others, because the base metal used in some forgeries is not magnetic.
3. Acid test. Inexpensive gold and silver acid test kits can be used. Simply apply a drop of this acid on a gold sample, if the color changes, that means it is not authentic.
The bullion value of the metal content is the most important and not the beauty, that being said, you still need to be very careful when applying the acid, otherwise discoloration can drastically reduce the value (price).
4. The weight and size. In reality, gold and silver are super dense metals, much denser than the base metal. Therefore, all counterfeits that weigh accurately will either have a thicker diameter or less weight to be the correct diameter.
Alternatively, an inexpensive gauge or jeweler’s scale can be used to assert the weight, diameter, and thickness of these precious metals to ensure they meet the specified standard.
5. Sound or ping test. Real gold and silver coins ring when struck with another. The fact is that the base metal coins sound duller and the chime is shorter, you can balance the coin on your fingertip and tap another 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 close and easily turn the coins on a hard surface. In the same vein, after installing the bullion test app, choose coins from the list and press the microphone button, balance the coins on your fingertips and strike with 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 the 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 that the silver is melting and cooling rapidly when removed from the fire.