8 Proven Techniques to Check if a Coin is Counterfeit

If you’re going to invest in silver or gold coins, you’ll need to ensure they’re the genuine article. But how can you tell if a coin is nothing more than a convincing counterfeit?

It’s important to understand why fake coins exist, which type of counterfeits to be aware of, and crucially how to spot a coin copy before it’s too late.

Here are eight techniques to help you avoid being scammed.

Genuine coins can be used as currency to purchase goods or may have a high intrinsic value if made from a precious metal. Their inherent value attracts criminals as a direct means to profit through deception.

Since their first introduction 3,000 years ago, criminals have sought ways to exploit the use and value of coins for their own means. While coin production and detection has become increasingly sophisticated to deter counterfeiters, there will also be motivation to create and use fake coins. Understanding some of the reasons for counterfeit coins existing can be the first step to being equipped to spot a fake. Some of the common incentives to bogus coins are;

1. Financial Gain

Very simply, producing imitation currency coins is a method of literally printing your own money! Coins can be used to make purchases or exchange for legitimate currency.

2. Collectors

Counterfeiters may target collectors of rare coins, willing to pay ultra high premiums for difficult to source editions. This can be particularly lucrative due to the high value of the genuine article and passion and commitment of the coin enthusiast to pay it.

3. Cope With Currency Devaluation

Criminality and counterfeit coins unfortunately exist in every corner of the world, but poorer countries with weak currencies are particularly prone to illegal coin reproductions. Economic instability leading to hyperinflation can create a scenario whereby a currency becomes almost completely devalued.  Fabricating coins is a way to try and survive these periods and pay inflated prices.

4. Cover Illegal Activities

Imitation coins can be used as a form of untraceable currency in illegal transactions. Criminal organisations wishing to avoid a money trail may use fake coins to fund their activities and avoid detection from authorities.

There are two main ways of fabricating phoney coins.  Each method can create very convincing fakes.

Struck Counterfeit Coins

This method uses metal discs which are ‘struck’ using dies onto metal planchets to physically stamp them. Struck counterfeits can be particularly difficult to detect as the striking method closely mimics the approach used by official mints to produce genuine coins. While the strike detail aims to closely replicate the real coins, the metal composition used will be compromised to dramatically reduce cost. Compromised image sharpness and detail can sometimes indicate a fake. Specific edge characteristics can be particularly difficult to reproduce such as a ridged finish (reeding) or lettering. More obviously, weight and size of the coin can vary from the authentic version.

Fake Cast Coins

This refers to imitation coins produced by pouring molten metal into a cast mold of the real coin. Like struck counterfeits, coins can lack some detail as the molds can struggle to capture the finer features of the design. Specific giveaways of cast fakes is that there can be telltale mold marks , which are lines or imperfections on the surface resulting from the casting process. Similarly, this method can lead to rough spots and uneven thickness when compared to struck forgeries.

Sourcing coins from a reputable and established specialist coin dealer will minimise risk. Most coin dealers will source new coins directly from Official Mints and have use equipment and the expertise of their team of numismatists to verify pre-owned coins are authentic. However, it’s always useful to know these  8 provide techniques to spot and test whether a coin is genuine.

Even the best counterfeiters in the world make mistakes, and with a well-trained eye, you should be able to spot the difference between the real deal and a fake. This applies to counterfeits of mainstream coins as well as rare collectable coins for investment.

To do this most accurately, pick up a magnifying glass, or go a step further and invest in a specialised loupe used by jewellers to get a closer look at the surface.

If you don’t have a genuine coin to hand, find a high-resolution image of the coin online and use this to make your comparison. Don’t forget, not all genuine gold coins are hallmarked, so the omission of one doesn’t mean it’s a fake.

This technique is specific to gold and silver coins as a result of the properties of the metals and the noise that coins make when they collide with a hard surface.

Pinging is a straightforward test for valuable coins, as the sound produced by silver and gold as they hit a tabletop, or are struck against another coin, is unique. While coins made with lesser metals, including counterfeits, will sound dull when dropped, a genuine coin will ring out for longer and produce an unforgettable high-frequency sound.

Prepare yourself to scrutinise potential coin purchases by performing the ping test on a gold or silver coin you know to be genuine, or check audio examples online. That way you’ll have a fixed idea of what to listen out for later on.

Gold is a great conductor of heat, silver even more so. That means as soon as an ice cube comes in contact with the surface of a gold or silver coin, it will begin to turn back into liquid water.

If a coin is made of a less conductive and less valuable metal, this process will not begin as quickly. Try this test out with genuine gold and collectable silver coins to see what the reaction should look like.

If you want to avoid all of the complications that come with trying to detect counterfeit coins under your own steam, the best option is to only buy from dealers that have a good reputation.

This isn’t just about avoiding first-hand contact with con artists, but also about building up a trusting relationship with a company like Physical Gold which you can rely on for all your future precious metal investment needs.

Most of all you should avoid coins that are being sold well below their market value, or being pushed upon you by a dealer who seems eager to get the sale over with as quickly as possible. The signals of an attempt to shift fake coins should be clear, so long as you are willing to look for them and don’t fall for a deal that’s too good to be true.

Gold’s enduring appeal and value is not just due to its scarcity but also its unique appearance. While no other metal can exactly mimic gold, there are some which resemble the sought after yellow metal. While these metals may share either colour or lustre properties with gold, each will possess distinct properties to differentiate them to gold.

 1. Pyrite (Fool’s Gold)

Pyrite is the official name for Fool’s Gold. It’s a sulfide mineral that has a metallic lustre and a brassy yellow color, closely resembling gold. However, it’s much lighter and harder than gold and lacks gold’s malleability.

2. Chalcopyrite

Similar to pyrite, chalcopyrite is a mineral that has a golden yellow color and metallic lustre. It’s often mistaken for gold, but it is a copper iron sulfide and is considerably harder than gold.

3. Brass

Brass is an alloy of copper and zinc that can have a yellowish or gold-like appearance. While it is not a precious metal like gold, brass is commonly used in the manufacture of decorative items and is less expensive.

4. Copper

Pure copper has a reddish-brown color, but certain copper alloys, especially those high in copper content, can exhibit a golden hue. Over time, copper develops a patina that can further enhance its resemblance to aged gold. It’s one of the most common metals used (along with silver) to create the 22 carat gold alloy used to produce popular coins such as the Royal Mint Sovereign and South African Krugerrand.

5. Bronze

Bronze is an alloy primarily composed of copper, with tin and other elements. Depending on the composition, bronze can have a golden-brown appearance. It is commonly used in sculptures, coins, and decorative items.

6. Titanium

Titanium has a natural silvery-gray color, but certain surface treatments can give it a golden appearance. Titanium is lightweight, corrosion-resistant, and often used in jewellery as a gold alternative.

7. Alluminium

While alluminium has a silver-white appearance, it can be coated or anodized to achieve a gold-like color. However, it’s much lighter than gold and lacks its density.

If you come into possession with counterfeit coins, it’s best to hand them in to your local police station. It’s illegal to try to use or pass off as real any counterfeit coin.

Our experts know everything there is to know about gold and silver coins, such as Sovereigns and Britannias. So, if you are thinking about investing and want more information, then the best option is to get in touch. Make a quick phone call to 020 7060 9992 or email us for outstanding coin advice.

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