Today on www.preciousmetalsinvesting.com we bring you a special report from Mike Moloney, of Robert T. Kiyosaki’s Rich Dad series, on precious metals counterfeiting. For many years the bullion investment advice was to buy small denominations and buy coins like silver eagles, gold eagles and other small denomination coins. Even as little as a year ago this was pretty sound advice. The reasoning was there was just not enough profit for someone to go to the trouble of making a high enough quality counterfeit that would pass the casual examination. Easy tests like weighting the coins to see if they were the proper weight or the rare magnet test could pretty reliably be depended upon to expose counterfeit coins. No longer – counterfeit silver eagles are pouring out of China. Gold bars, some even fooling jewelers in the US, have been found to have been hollowed out and the center filled with tungsten.
Although I don’t recommend the purchase of numismatic coins because of the high cost in relation to precious metal content and the multiple factors that go into a seller determining the values such as condition, rarity, grading, etc many precious metals buyers do purchase numismatics. Now they have another reason to worry about their purchase. Numismatic counterfeits are now being produced in quantity. Often, if these counterfeits are being presented as graded coins in plastic cases a fake coin is inserted into a case that once held the numismatic and sold for the premium the genuine coin would have commanded.
The Holograms that many bullion firms started producing recently to certify the genuineness of their product are also being counterfeited.
Another important consideration brought up in the video concerns bullion companies that also make offers to purchase precious metals. The problem is when they resell that bullion to other customers. Is it the policy of the bullion company that your are considering buyying from that they assay each coin they sell you to make sure it is genuine? It should be and you should require that. Rolls of silver eagles that were purchased from sellers were found to have a counterfeit eagle in the roll.
Counterfeiting is a serious problem and you should make sure that your purchases are genuine. The safest method of purchase is probably purchasing your bullion directly from the mint. If you are purchasing US Gold or Silver Eagles, since the US mint does not sell directly to the public, you should purchase from a reputable bullion dealer authorized to sell these US bullion coins.
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