Nothing is worse for a coin collector than purchasing a rare coin only to discover the coin is a counterfeit. Here are the easiest low-cost methods to ensure you invest in quality coins.
First and foremost, buy only from a company that you trust. The dealer should have a strict code of ethics that governs how it does business. In selling secondary market coins, the dealer should rely upon a respected third-party authenticator and grader. Nationwide Coin and Bullion Reserve offers coins that have been verified and graded by the industry leaders, Numismatic Guarantee Company (NGC) and Professional Coin Grading Service (PCGS).
The magnet test. Gold and silver are not attracted to magnets because they lack unpaired electrons. If a coin sticks to a magnet, that means it contains a base metal like nickel, steel, or iron.
Weight. A simple jeweler’s scale that can measure in tenths of a gram will tell you if the coin has the proper weight. A one-ounce 24-karat .9999 fine gold coin, like the American Buffalo, will weigh 31.10 grams, whereas a one-ounce American Gold Eagle coin, which is 22-karat, weighs slightly more at 33.93 grams, due to the addition of silver and copper.
Dimensions. A precision measuring caliper, either digital or traditional, that can measure in tenths of a millimeter, will allow you to check a coin’s diameter and thickness. While diameter can be easy for a counterfeiter to replicate, thickness is not. Often, coins that have the same diameter, like the one-ounce American Buffalo and the one-ounce American Eagle, will have differences in thickness. The gold American Buffalo is 2.95 millimeters thick, while the American Gold Eagle measures 2.87 millimeters in thickness.
One final simple way to avoid fraud is to know the basic history of a coin. For example, the U.S. Mint began producing gold American Buffalo coins in 2006. If a gold American Buffalo shows an earlier date, it is certainly a fake.
