How To Spot Fake Gold Coins And Avoid Fraud
Thinking of buying a gold coin? Learn how to spot a fake gold coin and avoid being a victim of fraud. Read to know more!
Minting coins has been the cornerstone of every developed economy since physical currency became the primary method of financial transactions. Ancient cultures made coins from precious metals, such as silver and gold, to fuel commerce and store wealth.
However, coin counterfeiters have erupted since, taking advantage of counterfeiting to make millions by passing off less valuable copies as real coins. Hence, you can save a lot of hassle and money by knowing if the gold coin is genuine. Furthermore, if you want to apply for a gold loan, you must know if your gold coin is natural or counterfeit.Gold's unique properties make accurate fakes challenging to produce, and you can check if your gold is authentic at home with a few simple tests.
How To Spot Fake Gold Coins?
1. Know the Source
Choosing a dealer or broker registered to buy and sell gold coins and who has a solid reputation in the community is the most efficient way to avoid the risk of acquiring counterfeit gold coins. Even though many registered dealers adhere to the rules and do not create counterfeit coins, there is a slim chance of being a victim of scams.Check the seller's online reviews and the recommendations of your friends, relatives, and colleagues before purchasing gold coins from them.
2. Avoid Unrealistic Offers
Beware of “too good to be true” offers. Dealers who try to push gold coins on you or discount gold for no logical reason are a major red flag. It is also suspicious if a dealer offers gold coins below the market value.3. Perform a Magnet Test
Gold is a precious metal not susceptible to magnetic forces. Thus coins containing a high concentration of gold will not react during a magnet test. This test is an easy way to detect counterfeit gold coins since they often have inexpensive metals that are magnetised.However, in some cases, a magnet test might not work if you are testing a false coin manufactured from a non-magnetic alloy.
4. Detect Gold By Its Colour
You must examine the whole coin to determine the purity of gold. Imitation metals become discoloured when they start to erode.Get Gold Loan at the comfort of your home
Apply NowGold does not corrode nearly as fast as other metals when exposed to moisture. A false metal might be present beneath the gold décor if there are specks of black or green on your coin.
The appearance of these spots is usually due to a low-quality imitation metal’s mismatched disguise that exposes tiny, microscopic pieces of the base metal. However, it takes time for corrosion to manifest itself as discolouration.5. Measure and Weight Gold Coins
Inconsistencies in size and weight are more common in counterfeit coins. Furthermore, each modern gold coin adheres to strict standards and regulations governing its dimensions and weight. In most cases, the differences between each gold coin are too minute to distinguish without professional equipment. Thus, it is easy to tell the differences between individual coins through precise measuring equipment.6. Study The Mint Markings
It is essential to identify the mint markings when buying gold bars. These markings include the following.• "Mark" or logo of the Mint
• A purity indicator
• Weight indication
• Serial number
7. Ping Test
Ping tests are among the oldest methods for detecting counterfeit gold coins. Striking a gold coin against a hard surface or another gold coin produces a sharp ringing sound. Compared to regular, non-precious metals, gold coins have a longer-lasting ping. When striking counterfeit coins against a hard surface, they produce a dull sound, and their ringing is shorter.Apply for a Gold Loan with IIFL Finance
IIFL Finance offers quick gold loans for small financial requirements. Visit IIFL Finance online or at your nearest branch to check the gold loan rates.You can complete all aspects of the application and disbursement process online. Depending on the purity of the gold, disbursals can take as little as a few hours. Get your gold loan today with IIFL Finance!
Frequently Asked Questions
Q1. Do 20k gold coins stick to magnets?
Ans. Real gold coins of 20k will not stick to a magnet as gold is not magnetic.
Q2. Should you invest in gold coins
Ans. Gold is a physical asset that holds its value over time, proving it is an excellent investment.
Get Gold Loan at the comfort of your home
Apply NowDisclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
