I've recently begun to acquire precious metals as tangible assets in the form of Silver American Eagle and Canadian Maple Leaf coins. I've read several posts that suggest shopping with local coin shops instead of online dealers. Their prices are competitive and there would be no shipping charges. I could also see the coins before I bought them. There's a coin shop less than 20 miles away that's been in business over thirty years in the same location. I'm familiar with this business because several years ago I owned a home in the same neighborhood. The shop also has an A+ BBB accreditation. My question has to do with the products they offer. How do local shops verify the content, weight and purity of their coins?
Same as we consumers do. Weight, some use acid testing. In regards to counterfeit recognition some can spot fakes with a magnifying lens. I would trust a reputable lcs over some of the sites out there.
To be honest, it's usually not a problem for them because they only buy from people they already trust. And when a coin shop buys Silver Eagles, they usually don't buy just a few of them. They will buy several tubes of them, or a whole box of tubes. Each tube holds 20 coins. And them getting fakes is not likely to happen. The fake Silver Eagles that are in the market are usually sold by individuals to other indivuals, and usually 1 coin, or just a few coins, at a time. They are not usually sold to dealers. That said, yes some individual could walk into a shop and sell his 1 or 2 fakes to that dealer, and fool the dealer. But it's not likely because the dealer will check the coins he buys that way. I guess what I am trying to say is that the chances of you getting fake Silver Eagles from a dealer are pretty slim. Unless the dealer is an out and out crook. And if he was he probably wouldn't stay in business very long.
