How to Spot Fake Coins

For as long as people have been collecting coins, there have been people trying to pass fake coins for the real deal.  As a collector, you run the risk of purchasing coins that are not what they claim to be, or worse still, made from materials that are worthless.  The best way to protect yourself is to do research before you consider valuable coins.

There are quite a number of good reasons why anyone investing in coin collecting should do preliminary research.  The first real reason is that researching a particular coin will help the collector realize the true value of the coin.  Once you know the value of the coin, you can quickly determine if the price of the coin is a good one, or if you should look to another seller.  Like anything other type of collectible, the common sense rule of "if it's too good to be true, it probably is" can go a long way to detecting a fake coin.  If the price presented is more than 3 times less than what it should be, proceed with caution.  And don't fall into the trap that just because it's being sold by a major grading service holder that it must be genuine.  The holders themselves may have gotten counterfeit coins without their knowledge.  Because of this, it’s a good idea to buy from dealers who have complete knowledge of the ownership history of the coin, as well as its circulation history.  If you're considering a particular coin without much known history, caution should most definitely be taken.

Besides the history of the coin being suspect, sometimes the materials used in the minting of the coin are also suspect.  The differences between real gold and silver coins with their fake coin counterparts can be easily seen, especially when placed side by side.  For starters, fake coins will rarely have the quality of workmanship seen in the real coin.  Fake coins are usually passed off as real ones quickly, and many counterfeiters do not feel the need for great deal of detail.  Fake coins will sometimes lack the luster of gold or silver, or it could appear impossibly shiny.  Many times the quickness of the manufacturing of the fakes can lead to imperfections and mistakes.  Also, fake coins will often have the appearance of being cast instead of being pressed.  

A quick test to indicate whether or not the coin is a fake is the sound it makes when it is dropped.  Does it ring like a real coin, or does it hit with a dull thud?  Chances are if it doesn't ring, it is made with a high quality resin.  Also, fake coins are often much softer than real ones.  While biting the coin to test for authenticity is not recommended, comparing such things as weight, shape, and appearance can be a good way to tell the fake from the real.

So what should you do if you already bought a fake coin?  If it wasn't guaranteed by the reputable dealer, or didn't come with a certificate of authenticity, chances are you might be out of luck.  There might be ways to get your money back through the legal system, but it is always a very good idea to do adequate research before making the important purchase.  

Ironically, a fake coin, depending on the workmanship involved can become a collector's item.  Many collectors of fake coins collect them because of the counterfeiter involved, the quality of the design, or the stories attached to them.  For the most part, forgers tend to aim their best, and paradoxically most valued work for extremely rare and valuable coins.  The chances of the average collector coming in contact with such pieces are rare.

While there is always a chance that a fake coin will be sold, proper and diligent research into the coin's history and materials can go a long way to prevent such a coin entering your collection.  Always buy from trusted and reputable dealers, and never, ever be ashamed to ask a lot of questions. Remember, coin collecting can be considered an investment.  And like any other investment, quality research is the only prudent approach.