Beware Of Gold Scams: Protect Yourself With These Tips
Many people often inquire how to identify counterfeit bullion, especially fake gold bars. If you’re taking the time and money to invest in gold bullion, it could cost you thousands of dollars, and end up being worth nothing if it’s fake. Luckily, it’s not as hard as you think to spot the fakes, and we’re here to show you how, as well as offer tips on buying authentic gold bullion.
- Be aware that more people are counterfeiting gold bars, including the Kangaroo Minted gold bars. Watch for specific markings to decipher the authentic one from the fake one. For example, the counterfeit Kangaroo bar doesn’t include their signature “black swan,” logo, and it omits the letter “B” from the bar code from the back of the case.
- Check the dates on the bars. Some counterfeiters are sloppy and will put dates on bars and coins, even during eras where bullion was not minted, so it pays to do your research.
- Watch out for gold bars filled with tungsten. The outside of the bars will still be pure gold but the inside will be filled with tungsten. Because it is so close in weight, it’s difficult to tell the difference. In fact, a gold bar weighs 19.284g compared to a tungsten-filled bar at 19.25 g. The only way to tell the miniscule difference is to weigh it on a gram scale and see if the weight matches the number imprinted on the bar.
- Use a Precious Metals Verifier to test your gold bars. This handheld scanner has the capacity to test metallic signatures of gold and silver products. This recently came in handy as several PAMP Suisse gold bars were made, and this device was able to decipher which ones were fake.
- Either ask your gold dealer to perform these tests or administer them yourselves on your gold bullion bars. Begin with the ping test by striking your bullion with another non-abrasive metal. If it “pings,” it’s genuine gold. However, if it makes a “clunking,” or any other noise, it’s a counterfeit bar or coin. You can also try the magnet test by holding a small magnet over your bullion bar. If they attract each other, the gold bar isn’t authentic, as pure gold won’t stick or attract to the magnet.
- Be careful of enticing offers. If someone offers you a deal on gold and it doesn’t sound realistic or near the current trends, it should send up a warning flag.
- Don’t fall for online gold sites that want to send your gold bullion to a third-party location and not you. You may not even receive bullion bars. Instead, choose an Australian Gold Bullion retail specialist to buy gold from to avoid being scammed.
If you’re planning to invest in gold bullion, take time to research the current trends and daily rates, and look for a gold dealer that lists this info both on their website and in-store. Taking time to know these things will reduce the risk of you being scammed.