Gold coins real and fake

Fake gold coins are always a danger for collectors of and investors in gold coins. Although most coin dealers are honest, there are always an unscrupulous few who seek to make ill-gotten gains off the gullible.

With the advent of the Internet, buying gold coins has become easier, but getting scammed has also become easier as the Internet has given shady coin dealers a broader field of marks to choose from.

The most common scam is to sell coins that are in poorer condition than advertised. Many coin collectors and investors have bought what they thought were mint condition coins only to find out they had bought dull, dingy coins.

To better assist you in buying gold coins, keep the following tips in mind:

Only do business with reputable sellers – If you don’t know the seller, or if the seller won’t provide information about his or her background, don’t do business with them. Also make sure that the seller has a working phone contact and a real physical address.

Avoid buying from sellers who don’t have return policies – Whenever you buy a coin on the phone or over the Internet, you’re taking a chance. Make sure you’ve got a way to hedge your bet by dealing with a seller with a return policy.

Do your homework before buying a rare or antique coin – All too often, novice investors pay way too much for antique coins. Make sure you know about the value and condition of any antique coin before you buy.

Demand guarantees of authenticity – Many numismatic coins have certificates of authenticity. Before shelling out a lot of money on a coin, make sure it’s certified.

Check credentials – If you’re doing business on eBay, this is as simple as going to the reviews page and seeing what other buyers have said about the dealer you are doing business with.

Check sizes and weights – Find out the weight and dimensions of the gold coin you intend to purchase and stack it up against recorded weights and dimensions of that type of gold coin. If something doesn’t add up, don’t buy.

Nitric acid test – If you’re able to obtain nitric acid, you can test your coin by dropping it in a jar of the substance. Fake gold will react, real gold won’t.

Bite it – Real gold is soft and will indent if you bite into it. This is not recommended for numismatic coins, where condition plays a role in their value.

There is a subset of coin collectors who collect fake gold coins. These collections are called black cabinet collections. Most of the fake coins have some historical value. This form of collecting is for experienced investors only, however.

With good judgment and discretion, you can avoid buying fake gold coins and continue to enjoy investing in and collecting gold coins.