AVOIDING COUNTERFEITS (FAKES)
Demand for silver is rising due to the falling confidence in the US Dollar, this causes silver prices to increase, thereby creating a higher probability of counterfeit (fake) silver coins and bars in circulation.
Counterfeiting is currently much more common among Gold coins which are worth about 60x more than silver, but that will not stay the same. Silver is bound to set records in the coming months and years as the demand continues to grow. (Click here to see inside a chinese counterfeiting operation.) Therefore, I would like to arm you with some basic and useful steps you may take to minimize the chance of getting a counterfeit coin.
Silver Bars (10 ounces and up) carry the greatest risk of counterfeits since they bring a larger profit to the counterfeiter and are easier to duplicate since the finish on bars is typically rough with little detail. It is also harder to inspect the bars since they need to be assayed to determine what metals are inside.
US Silver Dollar Coins (Morgan, Peace, & Eagle) have been spotted as counterfeits. These coins have a high premium. Silver Dollars should be tested by measurements and weight to match the mint specs, as well as other tests listed below. For quickly testing Silver Dollars minted 1840 -1935, a unique instrument called The Fisch (Wallet #6) may be used. For more on Diagnosing Fake Silver eagles click here.
“Junk Silver” coins are Pre-1965 US Silver Dimes, Quarters, & Half Dollars containing 90% Silver and 10% Copper. Due to the small size of these coins counterfeiting risk is lower. The Counterfeiters usually go for the big bars or coins with high premiums that contain larger amounts of silver. So Therefore, “Junk Silver” coins are one of the safest & cheapest ways to buy silver.
If you are purchasing large amount of “Junk Silver” coins, make sure you open the bag and ensure that the coins are what you paid for. There is no need to hold the bag sealed until the right day, the last thing you want it to find out that it’s not what you paid for.
1 oz Bars and Coins are generally seldom counterfeit and are just about as safe as the Junk Silver Coins in the counterfeit risk. But nevertheless, check these coins with the tests mentioned below.
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TESTING SILVER
(All tests and tools, except the sound test can be applied to Gold as well.)
Silver counterfeiting is much less common than Gold, however, it is on the rise, so arming yourself with basic skills/tools will help you spot a fake.
1). The Sound Test (for coins)
Put one coin on the tip of your finger and gently tap it with another silver coin so as to create a ringing sound. The sound should be a high pitch ring distinct from any other metal. Practice this and you will get used to the distinct “bell-like” sound_of_silver.mp3 *Be Careful doing this test, as you may drop and damage the coin.
2). Magnet Test (for coins & 1-10oz bars)
Silver is Non-Magnetic, meaning it does not get attracted to a magnet. However, if it is silver plated iron, cobalt, nickel, or stainless steel in the core, then the magnet should pick this up and get attracted to the coin. This is a sign that you may have a counterfeit on your hands. This test will rule out most major counterfeits with magnetic metals inside, but not all, since lead, copper, zinc, brass and some other substances are non magnetic and will not be detected by this test.
3).*Visual Test
Coin Surface: Fake silver coins may or may not have a silver-plated finish on them. Although higher-quality struck fakes might look pretty convincing if they're plated, many fakers don't even bother to plate the coin! Silver has a distinctive sheen to it that is neither too harsh nor too soft or "soapy" looking.
Look for silver plating that failed to fill into tiny spots and crevices. Look at the edge of the coin to see if the plating is visible where the rim meets the side; also look between the reeding. Sometimes just looking at the fields under 10x is enough to condemn the silver coin as a fake, because the fields may appear rough, or have spots of copper or other non-silver impurities.
Coin Edge: If the coin edge should be reeded, and isn't (or vice versa) this is a giant red flag, since mint errors of this type are very rare. Also, if the coin has a seam around the edge, a bit of a protrusion on the edge that could be a casting sprue, or file marks indicating a sprue or seam was removed, don't buy the coin!
*Reference: (http://coins.about.com/od/goldrarecoininvesting/f/fake_coin_fraud.htm
4). The Dimension & Weight Test (Most Accurate test for coins)
Each Government Minted Silver coin has specific Mint issued dimensions & weight or specifications which counterfeits can almost never match. Silver has a specific elemental density differing from other metals, this means that if someone was to make a counterfeit coin out of different metals and try to make the same weight and diameter as an original then it would turn out to be a different thickness, or if same thickness it would be a different diameter. This scientific phenomenon occurs since other metals expand differently, they do not create the same exact thickness, diameter and weight as silver. If the diameter, thickness, weight and shape match the Mint Specs your coin has passed. *Some older circulated silver coins may be minutely thinner and lighter as they are worn and lost some metal.
5). Fire Assay (Most Accurate Test For large bars of 100+ ounces)
This is the most accurate test, however, it involves melting the metal. For more details on Assaying click here.
6). X-Ray Fluorescence Assay (For large bars 100+ ounces)
The x-ray method is a quick method and fairly accurate test which does not usually involve any melting of the metal. The X-Ray measures the content of the metals present and provides a computer print out. It is not recommended for chemically treated or electroplated bars.
