Ever a fake coin sold through the big bullion retailers?

Discussion in 'Coin Chat' started by Thurmond, Apr 28, 2015.

  1. Thurmond

    Thurmond New Member

    I like raw, world, 20th century, gold coins. Some examples would be the Mexican 50 peso, the British Sovereign , etc. I also buy interesting modern bullion like the Gold Libertads.

    I'm not too wound up about condition. I try to stay just above spot. I straddle the fence between bullion and numismatics .

    Occasionally, I find what I'm looking for at some of the big bullion retailers at very good prices, and have bought raw coins without giving much though to the authenticity, much like one would buy modern bullion. I just assumed that the big retailers were checking for fakes, especially when they acquire the coins. I can't imagine it would be good for business if word got out that bullion retailer was selling fake gold.

    With all the talk of high quality fakes, I'm now concerned that I may be naive, yet I have yet to hear of a story of any the big bullion retailers selling a fake.

    Any stories or opinions?
     
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  3. dwhiz

    dwhiz Collector Supporter

    I would think that they buy in such large quantity that they don't examin each and every coin for authenticity.
    Just my opinion but what do I know
     
  4. ToughCOINS

    ToughCOINS Dealer Member Moderator

    Today's counterfeits are good enough to deceive most collectors and many less experienced dealers. Not all, but many . . . especially those who test for gold content. That's because testing often instills a false sense of security. Far better to know what a real mint product looks like than to rely on dimensions, weight and gold content, all of which modern counterfeiters have mastered the reproduction of.

    There are exceptions of course, but the really big bullion dealers see so many coins of the same type that any fakes presented to them are almost certainly going to stick out, and be turned away. It's a learned thing, almost intangible, how an extremely experienced dealer can determine in a split second that the coin doesn't look right, even while not necessarily knowing why.

    I think the biggest danger is not knowing which dealers lack a true numismatic background, as there are those who got started in shopping malls, hotel conference rooms and even in parking lots, and not as true collectors.

    The ones you can trust best trust to safeguard your interests are those with deep numismatic knowledge, including a strong understanding of the minting process, from start to finish. It is they who are best equipped to identify good fakes, because of the steps that counterfeiters do not include in making their coins.
     
    Last edited: Apr 28, 2015
    treylxapi47 likes this.
  5. john59

    john59 Well-Known Member

    I think you're right. When you deal in such a large quantity there is always a chance for a fake to go through. Even from the most experienced dealer. If you're going to buy bullion or anything you have to educate yourself too. You cannot put 100% behind what a dealer says. Like I said on the forum before and others, good quality counterfeits came from reputable dealers.
     
    dwhiz likes this.
  6. Numismat

    Numismat World coin enthusiast

    When you're talking about big time bullion retailers, you might get a coin that is fake, but is still the correct material. One example would be copies of British sovereigns produced in the Middle East, which often have the same (sometimes even higher) gold purity than the real thing and are often extremely close in details and appearance. But if you're buying modern bullion coins the precious metal content is the important factor rather than numismatic authenticity.
     
  7. Thurmond

    Thurmond New Member

    Well, this is depressing. I've been reluctant to transition from a stacker to a true coin collector mainly due to a fear of fakes. I thought I was taking small, safe baby steps towards becoming a collector (I really do enjoy the variety of world coins). Well, I guess I'll either have to crank up the education or resort to slabs. I don't like slabs and I don't mind putting in the effort to learn something new but even so, it still feels like a mine field, especially with the type of coins I like.

    Thanks for the opinions and info - time to reconsider whether to dive in, or back away.

    Thurmond
     
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