In fact, it is an old story that there is counterfeiting of almost everything in the world, gold, bullion, coins, bars and precious metals in general are not exempt. It’s an open secret of counterfeit coins emanating from Asia and gold bars drilled and filled with tungsten.
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 featured strategies will go a long way towards ensuring that you are buying real gold if you strictly adhere to them.
1. Accredited and knowledgeable dealers. Actually, your first and best precaution and safety is to buy gold from the leading professionals in this business. Leading players in this business have high quality standards and internal selection/control mechanisms backed by time-tested customer-focused service delivery.
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 dealers 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 should be used in conjunction with others, because the base metal used in some counterfeits is not 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 it is not authentic.
The bullion value of the metal content is more 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. Weight and size. In reality, gold and silver are super dense metals, much denser than the base metal. Therefore, all accurately weighed counterfeits will have a thicker diameter or less weight than is necessary to have the correct diameter.
Alternatively, an inexpensive caliper 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 hit with another. The fact is that base metal coins sound duller and the chime is shorter, you can balance the coin on your fingertip and strike with 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 your phone nearby and easily spin 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 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 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 rapidly when removed from the heat.