Buying gold coins is a great way to start investing in precious metals, but it’s important to know what you are buying.
Reports from the US suggest there has been a rise in counterfeit gold bullion coins and bars being uncovered. It’s of little surprise that the fraudsters are trying to cash in as gold enjoys an upswing in value among investors.
Always ensure you are buying from a reputable dealer that is well-established and has a good reputation in the market. Too good to be true prices when it comes to gold are usually exactly that.
According to Newsmax, many of the fraudulent coins and bars appear to be coming from China. It reported that apparently professionally packaged gold bars that looked exactly like those produced by a Swiss dealer had been found. Experts have also uncovered cases of counterfeit American Eagle gold coins and ‘gold’ bars made from tungsten and painted with gold leaf.
Gold industry and coin expert, Mike Fuljenz, wrote: "Whenever gold makes a positive move up, as it has done in the first quarter of 2016, we see ads from coin dealers sprouting up like weeds. Publications have little or no way to check-out advertisers. Their main criterion for reliability is whether their check for the ad’s payment clears the bank. Don’t be tricked by an ad on the Internet or on late-night TV."
US TV station KVRR also revealed a significant increase in reports from dealers of counterfeit coins over the past 12 months. It said that everything from the coins themselves to the packaging and certificates were being faked, and again pointed the finger at Chinese-made counterfeits. In many cases, fraudsters are understood to be buying fake coins and mixing them in with the genuine article in an effort to fool buyers.
The Gold Bullion Company was set up in 1993 and has established a reputation for fair and honest trading. Not all coin and bullion bar companies can say the same, so think before you buy from a less-trusted source.
