Can you spot a fake? Gold Ore Store breaks down the dos and don’ts of buying coins, precious metals – St George News
CONTRIBUTED CONTENT — If you’re going to invest in precious metals, especially gold or silver coins, you’ll need to make sure everything you’re buying is the genuine article. But with so many convincing counterfeits in circulation, how can you tell what’s real and what’s fake?
Counterfeit collectibles are one of the world’s oldest scams. Ever since the introduction of coins as currency some 3,000 years ago, criminals have been exploring ways to exploit their use and value for illicit gain, which makes things more complicated for private buyers as well as brokers like the Gold Ore Store in St. George.
“What it comes down to is figuring out who you’re buying from,” owner Greg Neel said. “Do you know them? Can you trust them? Are they actually selling you legitimate goods?”
Useful tools for avoiding counterfeit coins
Magnets
It’s fairly common knowledge that gold and silver don’t interact with magnetic forces. Therefore, any genuine coin should remain unmoved if exposed to a magnet.
If coins that supposedly contain high amounts of gold or silver are attracted to your magnet, they’re most likely worthless counterfeits made with far more steel or iron than advertised. This is particularly true for collectible coins minted by the United States government, Neel said, such as the Morgan dollar, the Peace dollar, the Liberty dollar and early silver dollars.
“If you have a magnet, in many cases that’ll tell you the truth real quick,” he added. “A magnet can be of tremendous benefit if you’re buying stuff from yard sales or people on the street, and you don’t have any education in coins.”
Scales and calipers
All high-quality coins are struck consistently and only put into circulation if they adhere to strict standards of size and weight. A digital pocket scale, which can be purchased from Amazon, eBay and other websites for around $25, can help you verify that each coin’s weight matches the information presented by industry handbooks like “A Guide Book of United States Coins.” Commonly known among coin collectors as “the red book,” this annual publication is handy for quick reference on the correct dimensions of thousands of coins.
To verify size, Neel recommends buying a caliper and measuring both the depth and diameter of each coin you want to buy. Even the best counterfeiters make mistakes, and it’s extremely difficult to create the perfect phony coin that matches both the weight and dimensions of the currency it’s spoofing. If either the weight or size of a coin are significantly different from official figures, it’s probably fake.
Acid testing kits
If you’re serious about coin collecting, investing in an acid testing kit will take your investigative skills to the next level. They’re inexpensive and readily available online or at many jewelry shops, Neel said.
Acid testing for gold coins involves applying a drop of nitric or hydrochloric acid to an unobtrusive area of the coin. If the acid turns green or starts to dissolve the coin, it’s not made from gold but rather a less valuable base metal plated with gold. For silver coins, however, the acid turning red, brown or green confirms that the piece is real silver, while any other color indicates a counterfeit.
The Gold Ore Store is the only broker in Southern Utah that uses X-ray fluorescence to determine the value of precious metals, Neel said. Widely accepted in the industry as the gold standard of testing, it’s highly accurate and provides instant results without damaging the item being examined.
“We make sure that everything we’re selling to the general public is exactly what we say it is,” he added. “That’s the value of working with a legitimate gold and silver broker.”
Owned and operated entirely by Neel and his wife, Melodie, the Gold Ore Store is the preferred broker of gold, silver, coins and collectibles for thousands of buyers and sellers across the Southwest and beyond. The shop carries an extensive selection of coins minted by the American government across all denominations, from the mid-1800s through present day. Buyers will also find gold and silver bullion in virtually every weight.
The Gold Ore Store buys and sells an impressive amount of gold and silver for a shop of its size and is the perfect place to get started if you’re considering investing in precious metals. In fact, Best of Southern Utah voters have awarded the Neels four consecutive gold medals in the gold store category along with numerous gold and silver medals for rock shop, antique shop and unique gift shop, another side of the business.
“Generally, our pricing either meets or beats whatever’s out there,” Neel said. “But it’s more about relationships. Most people want a personal interaction with somebody local instead of sending their money or precious metals to somebody online that they don’t know and are never going to meet.”
Call the Gold Ore Store at 435-703-9119 today for a private consultation on the value of purchasing gold and silver to safeguard your financial future. Visit goldorestore.com to learn more.
Written by ALEXA MORGAN for St. George News.
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