Use a Magnet

Many experts recommend using a magnet to determine the authenticity of the coin. For instance, nearly all of China’s counterfeit based coins are produced with an iron-based planchet. If the coin sticks to the magnet, then it is counterfeit. Only one coin in United States history has been counterfeit. The 1943 steel penny is the only authentic coin that will stick to a magnet. All other gold coins that stick to a magnet will be counterfeit in the United States and China. Canadian coins are the only exception to this rule.

Use a Gram Scale

In the United States, a coin that is off its pre-specified weight by more than 1% is a candidate for counterfeit. The United States has a very low tolerance for errors in weight and diameter. In China, the counterfeiters often use scrap metal to make the coins or cast blanks. The coins made with these blanks are typically underweight.

Use a Caliper to Measure the Dimensions

A caliper may be used to measure the diameter of the coin. Any coin that has a diameter smaller than the country’s specifications will be suspected as counterfeit. Simply slide the jaws of the caliper across the edges of the coin to make the measurement.

Drop the Coin on a Hard Surface

The sound the coin makes when the coin makes when it is dropped or comes into contact with another coin is distinctive. Counterfeit coins are often softer than authentic coins. A plastic-like sound may occur when the coin is thrown onto the floor or when the coin is struck against another coin.

Use a High Powered Magnifier

A high powered magnifier may be used to review the details of the coin. Any suspicious writing or misspellings may indicate that the coin is counterfeit. Bubbles on the surface may mean the coin is counterfeit.

Experts must know the United States coin specifications before determining if the coin is counterfeit. The Red Book will have the correct specifications listed for comparison purposes. All of the tolerances are miniscule. Fine instruments such as 10 times or higher microscope are used to determine the authenticity of the coin.

To determine if a coin is counterfeit, look at the date to determine if there is any damage around the date. Each number should adhere to the design set forth in the country’s specifications. Also, examine the Mint Mark to determine if it is in the correct shape and position. A small depression around the Mint Mark is usually a good indication of a genuine coin. If the Mint Mark is removed completely, this may be a sign of counterfeit also.

Use a Reputable Gold Coin Dealer

If in doubt, solicit a reputable coin dealer to verify the coin’s authenticity. Experts often advise investors to buy gold coins during a recession as a safe investment vehicle as the value tends to increase when other investments decrease in value. Our clients often buy gold coins for investment or for collections. This can be a lucrative hobby or investment opportunity if you purchase from a reputable gold coin dealer or complete the proper research before your purchase.

1. You will protect your assets
Rare coins have the distinct advantage of having intrinsic value. In other words, the metal the coins are made of has worth in and of itself. The simple truth is, precious metals never go out of style. They’re always in demand. And when your precious metal is in the form of an historic rare coin, it’s even more valuable.

2. Tremendous upside potential
Right now, precious metals are far below their historic highs. And if history tells us anything, whatever comes down, usually goes back up. I can only say that the potential is definitely there. And when precious metals are in the form of rare coins, the price tends to go up farther and faster than just plain bullion.

3. Gold coins aren’t being made anymore
It’s only common sense when you think about it. Any time the world needs more gold or silver, we can just dig it out of the ground. But gold or silver in the form of a rare coin is completely different. We can’t go back in history and create more historic coins. Whatever is available is all there is. So, your precious metal is even more precious in the form of an historic coin.

4. Great Inflation Hedge
Back when I was young, a $20 gold piece would buy a high-quality men’s suit. I can now buy several high-quality suits with the same $20 gold piece. Why is that? Because paper money isn’t worth as much these days. But precious metals are. They retain their value in spite of inflation.

5. Gold Coins are Liquid!
These assets have the rare advantage of being easily bought and sold because standardized grading allows you to buy coins sight unseen. And, computerized national trading networks give you ready access to a market for your coins.

6. Protect your privacy
I remember the time when we took our privacy for granted. Those days are gone. But this is one investment no one but you and your family needs to know about.

7. You’ll protect your wealth from confiscation.
Back in 1933, the government confiscated all gold bullion and bullion coins. Federal law gives them that power in times of national emergency. But collectibles, such as rare coins with recognized collector value, are exempt. So, the next time the folks in Washington D.C. start looking to regulate or confiscate gold, your coins will not be touched!

8. No tax consequences until liquidation.
If your coins increase in value, you won’t be taxed on your profit until you sell them. And if you simply trade your coins for other coins of equal or greater value, there still are no taxes (if it’s a qualified like-kind trade). I suggest you talk to your tax advisor about this one.

9. Own a piece of history.
Many times, rare coins are beautiful works of art created by celebrated artists. But in every case, they’re an important part of their era. Holding one is like having a golden or silver moment of time in your hand, passed down from a bygone age. Because of this, they make excellent heirlooms or mementos for you to pass on to future generation such as your children or your grandchildren.

10. Less volatility versus gold bullion.
Gold coins have proven over time to actually be less speculative then the actual price of gold. It’s a proven fact.

I suggest you look into rare coins yourself. Do your own research. I think you’ll see the wisdom of buying your precious metals in this form, and remember most of these companies charge huge commissions because of the overhead incurred. With Inexpensive Gold you will not be charged excessive commissions; our spreads are very low compared to the 20-50% spreads that some of the other companies will charge. If you value your money and want to concentrate on your investments without worrying about exorbitant sales charges. then give us a call. I’m sure you will be pleased with our services.

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