Counterfeit Gold: How to Spot Fakes and Protect Your Investment

Investing in Gold is an old tradition that has been going on for thousands of years. It is a highly popular way of hedging your wealth against inflation and times of economic crisis. However, with the rise in popularity amongst investors, also began the rise of counterfeit bullion entering the market. As an investor or collector, it is imperative that you know what you are purchasing and safeguard yourself from wasting your hard earned wealth on any counterfeit bullion. 

The Risks of Counterfeit Gold 

The risk of counterfeit Gold is one that will burn you a lot. It can lead to significant financial losses. Other than the risk of financial loss, counterfeit Gold poses a real threat to the Gold market as it reduces investor confidence and as a result also devalues real Gold. 

Common Ways of Counterfeiting Gold 

Over the years counterfeit Gold has grown to become increasingly common and counterfeiters have become increasingly sophisticated. Some of the ways they circulate fake Gold include creating Gold-plated bars/coins that are either identical or very close in weight to make them feel like genuine Gold. 

Visual Inspection Tips 

One way of spotting counterfeit Gold is by doing a visual inspection. Some key things to look out for are colour, inconsistencies in font, hallmarks and overall craftsmanship. Real Gold will have a different shine and colour that is very difficult for counterfeiters to replicate. 

Physical Tests You Can Try

One of the easiest at home tests you can do to check for counterfeit Gold is to do the magnet test. This can be done by bringing a magnet close to your Gold bullion, and if it sticks that means that is a counterfeit. Although Gold is a metal, pure Gold is not magnetic. Moreover, it is important to note that some of the advanced counterfeit Gold can sometimes be produced with non magnetic materials. 

Advanced Verification 

A more precise way of verifying if you have counterfeit or real Gold is through using XRF scanners that send ultrasonic waves through the bullion to check its authenticity. This is non destructive method that will give the most accurate answer on purity. However, these machines can get expensive. At AU Bullion, whenever you buy bullion from us in store and request to see the authenticity we will gladly show you using our XRF Scanner! 

Purchasing Safely 

The easiest way for you to avoid any counterfeit Gold is through purchasing from reputable and trusted dealers. AU Bullion is proud to be an authorized Royal Canadian Mint Bullion DNA Dealer. This means we have to uphold to the highest level of quality and customer satisfaction and ensure that we are only selling genuine bullion.