Sadly, any time there are large amounts of money to be made, crooks are nearby, trying to figure out how to make a fast buck. Given that billions of dollars change hands every year in the silver and gold coin and bullion business, it’s not surprising that it attracts thieves of all stripes, from petty racketeers to sophisticated counterfeiters. Here are a few ways to protect yourself from them.
1. Get a Magnet
Silver, gold, and most of the metals they’re alloyed with in coin making are not magnetic. While some carefully made fakes can be non-magnetic, using a magnet is a quick and easy way to spot many counterfeit coins.
The stronger the magnet, the better, since it will pick up even small amounts of magnetic materials. Grade 52 neodymium magnets are extremely strong and widely available for around $15. They have a wide variety of applications, but some can take up to 50 pounds of pressure to remove and can be small enough to be choking hazards for young children.
Magnets and devices like magnetic slides aren’t foolproof, but good first-line defenses against fakery.
2. Check the Specs
Coins from government mints are made to exacting standards for both weight and dimensions, and that information is readily available online. A good digital electronic scale that measures in grams to at least two decimal points is what you’ll need. You can get them for around $12 and up. While there can be some minor weight variations, anything at all below (taking wear on old coins into account) or a percent or two above specifications should raise questions.
Good-quality digital calipers are available for $15 and up and are what you’ll need to verify the extremely precise dimensions for the real coin’s thickness and diameter.
3. Make it Ring
Silver has a distinctive high-pitched ring when struck with another metallic object. It rings at a frequency of roughly 6145 Hz and is fairly easy to distinguish by ear. Here’s a YouTube video that shows you how to do it and what to listen for. It also shows a neodymium magnet in use. There are instruments that also measure sound waves, and you may have one if you’re a musician or engineer, but since the ring test isn’t foolproof, you might want to save your money and use a ring test in combination with the weight and size tests for a fairly accurate assessment of your coin’s authenticity.
4. Get Specific
About gravity, that is. Different metals have a characteristic specific gravity, and it’s fairly easy to check with a glass of water, some thread, a good scale and a calculator.
First, weigh the coin dry. Then get its submerged weight by first weighing the water-filled glass, then its weight with the coin suspended in the water without contacting the glass. The difference is the coin’s submerged weight. If your scale allows you to zero out the weight of the water-filled glass, you can save a step that way. Specific gravity is calculated by dividing the dry weight of the coin by its submerged weight. The product of the division is its specific gravity. This video shows how to do it. Check the sample against the known specific gravity of a real coin. It should be within a very narrow tolerance.
5. Take a Close Look
One of the best ways to spot a fake is to know what to look for. Silver has a distinctive look when fresh and untarnished, but your coins won’t always be pristine, so look for other clues. It helps to have a known good sample to compare to and a high magnification jeweler’s loupe, such as these available on Amazon.com or at most coin dealers.
Some obvious things to look for are design errors, inaccurate text or spacing, and edge reeding or markings. Details in things like clothing, feathers, and leaves can betray counterfeits, too. Knowledge is power, and the more you know, the easier it is to spot fakes.
Save Time and Money—Buy Only from Reputable Dealers
These are only a few of the most basic ways to spot fake coins. Avoid destructive tests like bleaching and acid tests that can destroy a coin’s collectible value. There are other, more sophisticated tools, too, but they can be quite expensive and are only appropriate if you’re a major collector or dealer.
The best insurance against fraud and fakery is to get a few good books about collecting and only deal with someone you trust. The Great American Coin Company® offers a wide selection of collectible U.S. coins and paper currency as well as currency from around the world, and we back up our products with a guarantee of authenticity.
