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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 40x more than silver, but that will not stay the same. Silver will continue to set records in the coming months and years as the demand continues to grow and supplies dwindle. (Click here to see inside a chinese counterfeiting operation.) Therefore, I would like to arm you with useful information and 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, however, as Silver price reaches new highs, be prepared for counterfeits to flood market. Check these coins with the tests mentioned below.
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EFFECTIVE SILVER / GOLD COIN TESTING TOOLS
1. Digital Caliper (For accurate diameter & thickness measurements)
Example: Mitutoyo Caliper
*Plastic Calipers are ideal for those who wish to avoid possibly scratching their coins.
2. Basic Digital Gram Scale ( 0.1g accuracy)
Example: Ohaus Scale 500 X 0.1g
3. Advanced Digital Gram Scale (0.01g accuracy).
Recommended scale for use with Specific Gravity Kit (#4 Below)
Example: MyWeigh i601 600 X 0.01g
4. Specific Gravity Kit: Can be used as a cheaper alternative to the Densimeter.
Example: Universal Specific Gravity Kit (Requires at least a 0.01g Scale, #3 above).
5. DensiMeter: Advanced Scale for Measuring Specific Gravity (Elemental Density).
Example: Densimeter Scale (For Metal Brokers/Dealers/Professionals).
6. Jewelers Loupe W/ LED Light (For magnified observation of coin)
Example: Deluxe LED Jewelers Loupe
7. Strong Magnet (To test for magnetic metal core)
Example: Neodymium Magnet
8. The Fisch Instrument: (For “On-The-Go” Testing of Certain Coins)
Example: Fisch Instruments
TESTING SILVER
These tests and tools 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. As Silver reaches over $50/ounce and supplies dwindle, you can be sure fakes will abound.
Completing Tests 1 - 5 together will yield a near perfect confirmation.
1). The Sound Test (for coins)
Reliability Level: POOR / AVERAGE (Does not measure dimensions, could sound similar to some other “high-pitched” metals).
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)
Reliability Level: POOR / AVERAGE (Non-magnetic metal fakes will pass this test, e.g. lead).
Silver is considered Non-Magnetic, meaning it does not turn magnetic on its own (unlike iron). In a strong magnetic field Silver does magnetize a tiny amount but it won’t “stick” to the magnet, only a slight “magnetic force” may be felt (reference). However, if it is silver plated iron, cobalt, pure-nickel, steel or alloys of these metals in the core, then a good magnet will get strong attraction to the coin. This is a sign that you have a counterfeit on your hands. This test will rule out most counterfeits with magnetic metals inside. However, not all counterfeits contain magnetic metals, since lead, copper, zinc, brass and some other substances are non magnetic and will not be detected by this test.
3).*Visual Test
Reliability Level: AVERAGE (Human eye cannot weight nor measure density).
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 magnification 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 (diameter + thickness) & Weight Test
Reliability Level: VERY GOOD (This test will rule out most fakes, however, some similar cheaper metals such as Molybdenum, with a specific metal density of (10.22) are so close to Silver (10.49) that only a Specific Density test can rule this out).
Each Government Minted Silver coin has specific Mint issued dimensions & weight or specifications which counterfeits can almost never match. Silver, being a unique element, possesses 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 is likely authentic. *Some older circulated silver coins may be minutely thinner and lighter as they are worn and lost some metal. Also as Silver becomes more expensive, Silver-Plated Molybdenum coins may become a risk; although this is probably more likely with bars.
5). Specific Gravity Test
Reliability Level: VERY GOOD / EXCELLENT (This test is the most effective when combined with test #4 above. Specific Density test will yield an extremely accurate measurement of silver’s unique elemental density: 10.49).
Specific Gravity test can be done at home with simple tools, Watch Video Demonstration. For Advanced (more accurate) testing, I highly recommend using a Specific Gravity Kit + an accurate Scale which measures specific gravity to the hundredth of a gram (0.01g), or if $ is no object, consider an accuracy of 0.001g.
6). Fire Assay
Reliability Level: EXCELLENT (Costly, Burdensome and recommended 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.
7). X-Ray Fluorescence Assay
Reliability Level: AVERAGE / VERY GOOD (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.
8). Electronic Testing
Reliability Level: AVERAGE (May not work if fake has a thick Silver Plating)
9). Nitric Acid Test
Reliability Level: POOR / AVERAGE (Works only on surface of metal, will not work on silver covered fakes, stains/damages the coins).
