Best of the Week
Most Popular
1.What Happened to the Stock Market Crash Experts Were Predicting - Sol_Palha
2.London Housing Market Property Bubble Vulnerable To Crash - GoldCore
3.The Plan to Control ALL Your Money is Now at Advanced Stage
4.Why Gold Is Set For An Epic Rally This Spring - James Burgess
5.MR ROBOT NHS Cyber Attack Hack - Why Israel, NSA, CIA and GCHQ are Culpable - Nadeem_Walayat
6.Emmanuel Macron and Banking Elite Win French Presidential Election 2017 - Nadeem_Walayat
7.Trend Lines Met, Technical's are Set - US Dollar is Ready to Rally (Elliott Wave Analysis) - Enda_Glynn
8.The Student Debt Servitude Sham - Gordon_T_Long
9.Czar Trump Fires Comey, Terminates Deep State FBI, CIA Director Next? - Nadeem_Walayat
10.UK Local Elections 2017 - Labour Blood Bath, UKIP Death, Tory June 8th Landslide - Nadeem_Walayat
Last 7 days
How Investors Can Profit From The Coming Resource Wars - 29th May 17
Gold vs. Gold Mining Shares – Just The Facts, Ma’am - 29th May 17
Walkers Crisps Pay Packet £5 Cash Wins After Buying 64 Multi-packs - 29th May 17
SPX/NDX/NAZ Hit New All-time Highs - 27th May 17
GBPUSD Top in Place, GOLD Price Ready to Rocket? - 27th May 17
Silver Mining Stocks Fundamentals - 27th May 17
BBC Newsnight Falls for FAKE POLLS, Opinion Pollsters Illusion for Mainstream Media to Sell - 27th May 17
UK Local Election Results Forecast for General Election 2017 - 26th May 17
Stock Market & Crude Oil Forecast! - 26th May 17
Opinion Pollsters UK General Election Seats Forecasts 2017 - 26th May 17
Bitcoin and AltCoins Crypto Price Correction - 26th May 17
Bearish Head and Shoulders in EURUSD? - 26th May 17
SELL US Stocks - Massive Market CRASH WARNING! - 26th May 17
EURGBP: A Picture of Elliott Wave Precision - 26th May 17
Credit Downgrades May Prompt Stock Market Capital Shift - 26th May 17
Rosenstein and Mueller: the Regime Change Tag-Team - 25th May 17
Stock Market Top - Are We There Yet? - 25th May 17
Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey - 25th May 17
USD/CAD Continues Decline - 25th May 17
Bitcoin Price Goes Loco! Surges through $2,500 Despite Unclear Fork Issues - 25th May 17
The US-Saudi Arms Deal - Sordid Saudi Signals - 25th May 17
The No.1 Commodity Play In The World Today - 24th May 17
Marks and Spencer Profits Collapse, Latest Retailer Hit by Brexit Inflation Tsunami 2017 - 24th May 17
Why Online Trading Platforms Are Useful for Everyone - 24th May 17
The Stock Market Will Tank Hard - 24th May 17
It’s Better to Buy Gold & Silver When It DOESN’T Feel Good - 24th May 17
Global Warming - Saving Us From Us - 24th May 17
Stock Market Forecast for Next 3 Months - Video - 23rd May 17
Shale Oil & Gas Production Costs Spiral Higher As Monstrous Decline Rates Eat Into Cash Flows - 23rd May 17
The Only Metal Trump Wants More Than Gold - 23rd May 17
America's Southern Heritage is a Threat to the Deep State - 23rd May 17
Manchester Bombing - ISIS Islamic Terrorist Attack Attempt to Influence BrExit Election - 23rd May 17
What an America First Trade Policy Could Mean for the US Dollar - 22nd May 17
Gold and Sillver Markets - Silver Price Sharp Selloff - 22nd May - 22nd May 17
Stock Market Volatile C-Wave - 22nd May 17
Stock Market Trend Forecast and Fear Trading - 22nd May 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

Seven Ways to Tell If Your Gold is Counterfeit

Commodities / Gold and Silver 2013 Jan 02, 2013 - 07:32 AM GMT

By: Money_Morning

Commodities

Peter Krauth writes: I had just finished a walking tour of the Royal Canadian Mint when I saw it. Right there, out in the open, was a 400-ounce bar of pure gold.

It was chained to a display table and kept safe by an armed guard. At the time, in 2005, the bar was worth $220,000.

Today, the same bar is worth $667,700. In just seven years, gold prices have jumped by 203%.


But it's not the eternal fascination with gold that has boosted the price. With growing levels of worldwide uncertainties, mounting inflation risks and government distrust, people are clamoring for gold primarily as insurance.

According to the World Gold Council, 2011 saw gold bars and coins reach nearly $77 billion in sales, versus 2002's $3.5 billion. And in November alone, the U.S. Mint's sales of the popular American Eagle coins jumped 131% in the wake of the election.

With the market for gold growing at a feverish pace, it's now more important than ever to know that your gold is the real deal-especially with gold prices looking to break through the $2,000 mark in the new year.

Here's why...

Gold counterfeiting is nothing new. In fact, just recently there were reports of fake gold bars from China turning up in New York. Instead of gold, their centers were stuffed with tungsten.

But rest assured there are a number of methods you can use to mitigate the risks of ending up with counterfeit gold. Some are simple, quick and inexpensive. Others are more elaborate, detailed, and not so readily accessible.

Here are seven ways to find out if the gold you own is real:

Fake Gold Test #1: Size
Whether we're talking about coins, wafers, or bars, the producers of these items usually have very exacting standards. So a little research goes a long way to making sure you get what you expect.

Find out what the true dimensions of the item should be, then compare them to what you have.

To do this, buy yourself a good quality pair of calipers so that you can measure the diameter, thickness or other dimension of your gold item very precisely.

Gold is a very dense metal, so some counterfeiters may make a coin in a wider diameter, in order to compensate for a less dense metal. If you compare gold to iron, it takes twice the volume of iron to equal the same weight of gold.

Plating other metals with gold still allows them to match the proper weight, but the size would be off. The difference could be very minor, but if you know what to look for, you can spot the fake.

Fake Gold Test #2: Magnetic
Gold is not magnetic. So if it sticks, your gold is fake. But to do this, you'll need a stronger than average magnet. The kind available from a specialized hardware store should do it.

Keep in mind that counterfeiters obviously know this too. So they'll typically use metals that aren't magnetic to avoid this type of detection.

Just don't use this test alone.

Fake Gold Test #3: Weight
Obviously, one true and tested way of being sure you get what you ordered is by quantity. And weight is a great way of checking.

Get yourself a good quality, precise scale. Then, based on the stated weight on your coin, wafer or bar, it should match up perfectly.

Keep in mind though, that gold is weighed in troy ounces. One troy ounce is equal to about 1.09714 "avoirdupois" ounces, which is the normal 1 ounce measurement we use in everyday life.

Fake Gold Test #4: Visual
Knowing what you're looking for will certainly help here. It's a learned skill, but keep an eye out for anything that looks odd or abnormal.

A decent, strong magnifying glass goes a long way to pinpoint oddities.

You can search for high quality images of your coin or bar, then compare that with what's in your hands. Be meticulous in your search for minute details, all of which must be spot on.

Gold coins are a good option for gold "investments." You see, counterfeiters will often (but not always), fake larger gold items because it's more worth their while. After all, if you're going to go through all of the painstaking trouble and risk, the payoff might as well be big.

The test methods I've described so far apply to pretty much any form of "investment" gold. But if you take the leap and acquire a larger-sized gold item, there are a few other tests that can be performed for veracity.

The truth is, anyone who owns gold in the form of a larger bar, say 10 ounces and up, ought to consider having it verified.

Fake Gold Test #5: Assay
One option is known as the fire assay test. This is typically used by gold explorers/miners who require absolute certainty that their drilled samples are the real thing.

Fire assays are an ancient method. They are the most widely used and considered the most reliable. The downside is that it involves drilling into the gold bar to provide at least ½ gram (0.2 ounce) to be tested. Some feel removing even a small quantity of the bar will take away from its integrity. But some gold bullion dealers, for their own assurance, will decide to cut your bar if you've agreed to sell it to them.

Another downside with fire assays is that you're really only testing the small portion you've sent to the testers. So if there is a void or other metal in the center of the bar, the test won't find it.

Assay testers will usually take about three days and charge about $35 to test a gold sample. They'll also provide an official signed report with the results.

Fake Gold Test #6: X-ray
X-ray testers are another option to check your gold. Jewelers will sometimes use these to test any gold they buy.

The tester quickly performs chemistry analysis to determine what elements are present in the gold. They also can tell the purity and fineness of the metal.

X-ray testing does have a ±1% accuracy rating, so while minor, there is some chance for error. The other drawback is that it's essentially a surface test, so if there's a void or another material in the center of the bar or coin, then X-ray testing won't detect it.

On the plus side, it's nondestructive and non-intrusive, so the integrity of your gold won't be compromised. You'll know, at least, if the surface of the item is real gold.

Fake Gold Test #7: Ultrasound
Ultrasound testing is a way to "look into" your gold. It uses the same ultrasound technology familiar to all pregnant women.

Essentially, this method scans the item, providing a digital image of the gold bar.

If there is an air gap or other material inside the gold bar, this will show up as a darker area on the screen's image.

This is expensive equipment, so it may be challenging to find someone who could provide testing services.

The advantage is that ultrasonic flaw detectors can actually "see" the inside of your bar, so the results provide a high degree of confidence in the bar's integrity. If you want to see exactly how this works, click here to view a short video demonstration.

Of course, there are other tests you can do to mitigate your risk of ending up with a fake. Probably the single most important thing you can do is to buy your gold from a reputable dealer.

While it sounds obvious, a little research can go a long way. Ask friends or acquaintances for referrals and check the website of a government mint for "partner" bullion dealers.

Also, consider buying from dealers that offer a product guarantee, as well as a future promise to repurchase anything they previously sold to you.

Keep in mind, though, that the biggest counterfeiter of all is your own central bank. Since the 2008 crisis, the Federal Reserve has created trillions of dollars out of thin air.

So your best insurance against even more fiat money counterfeiting is to own some physical gold. Just be sure you know who you're buying from and what you're getting.

Source :http://moneymorning.com/2013/01/02/seven-ways-to-tell-if-your-gold-is-counterfeit/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife