It is the greatest fear of all gold owners: their gold is fake.
we money reserve is here to equip you with the information you need to make sure that doesn’t happen to you, no matter where you choose to buy gold. Here are six tips to help you avoid falling victim to a gold scam.
Reading: How to tell if a gold coin is real
tips to avoid fake gold
1. know the source
Not all companies sell official legal tender precious metals that have been minted in the us. uu. mint or other government minting institutions. U.S. the money reserve does. the United States. the mint is a gold standard, so to speak, for producing legal tender coins. The Australian Perth Mint, Austrian Mint, Royal Canadian Mint and Shenyang Mint are other minting facilities trusted around the world.
Buying gold bullion or coins minted from a reputable facility can help take away a lot of worry. Buying these gold products from a well-known, established company can help even more.
If you’re buying from a private seller, who likely doesn’t have the qualifications or connections of an established dealer, do your research before you buy a single piece of gold. Ask for recommendations from friends, family, and colleagues, and also read the seller’s online reviews.
When you’ve found a company you’re interested in working with, contact them and consider the following:
- How easy is it to contact the company?
- Does the representative take the time to get to know you and understand your financial goals?
- Do you feel like of the representative is educating you? Or are you being pressured to buy before you’re ready?
- How long has the company been in business?
- Does the company have a positive online reputation?
The bottom line: Know who you’re buying from and where the gold bullion and coins were minted before you spend your hard-earned money. And be careful if a deal sounds too good to be true. such offers could be fraudulent.
2. evaluate things
When it comes to gold bullion coins, familiarize yourself with a coin’s weight, size, and inscriptions.
for example, the popular 24 karat coins weigh exactly one troy ounce each. Coins like the 22-karat American golden eagle and the gold krugerrand weigh more than a troy ounce because they are made with alloys.
If you’re shopping at a private party, be sure to weigh a coin before handing over your money. if it’s heavier or lighter than it should be, that could mean the coin is fake.
Diameter and thickness are two more things to consider when purchasing a gold coin from a local source. this mainly applies to coins minted by governments, as these coins come in standard sizes. be sure to find out the diameter and thickness of a government minted coin before heading to a local dealer. specifications for government minted coins can be easily found online.
If a coin comes in an unusual size, it’s probably not a coin at all. it is likely to be a round. no round can have exactly the same diameter, thickness, and mass as a legal tender. Size regulations help prevent counterfeiting and make it more difficult to defraud coin-operated technologies. regulations can also result in some unusual weights, such as 1/20-ounce, 2-ounce, 5-ounce, and 10-ounce rounds.
beyond the size of a gold coin, look at the inscriptions.
For example, the word “Liberty” and the year of minting appear on the obverse of the immensely popular American Eagle gold coin. On the reverse are “united states of america”, “e pluribus unum” and “in god we trust”. If a coin you’re looking to buy has imperfect letters or numbers, or if the words and numbers don’t match what the minting facility reports online, these may be signs of a counterfeit coin.
3. examine the registration number
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When you’re thinking of buying a gold coin, look for the registration number (if the coin is certified or graded). If the coin’s plastic packaging displays a Professional Coin Grading Service (PCGS) or Numismatic Guarantee Corporation registration number. (ngc), then it is considered authentic.
4. study mint markings
When buying gold bullion, be sure to identify the mint marks. these include:
- mint mark or logo
- purity indication
- weight indication
- serial numbers (only with some bars)
If these items are missing or don’t look right, it’s very likely a fake bar. our blog post on how to buy gold bullion includes useful information for “reading” gold bullion.
5. perform the magnet test
gold (.999 fine) is not magnetic. however, fake gold is.
Using a strong magnet, you can test the gold to see if it is legitimate or not. if a magnet is attracted to what they have been told is a gold bar or coin, then it is not .999 fine gold (or 99.9 percent pure).
6. pay attention to the price
A reputable seller will almost never offer a gold bullion or coin obscenely below its market price, known as the spot price. Therefore, if the spot price of gold is $1,400 per ounce, but a trader is promoting a gold bar at $500 per ounce, he should research both the product and the seller before making a move. rushing into a purchase could mean you’ll be scammed.
buy us government issued gold coins. uu. reserve money many of our gold coins are designated as official legal tender and are guaranteed for their gold content, weight and purity. shop for precious metals online or call 1-844-307-1589 to speak with an account executive today.