As the increase of silver and gold purchases are on the rise, so are the scams. I'm talking about counterfeit silver and gold coins and bars being sold in the public and private sectors.
The people producing these counterfeits are passing them off to your "unsuspecting" local coin shops, pawn shops, and/or online retailers.
This is an on going problem with no signs of slowing down anytime soon. Fake silver and gold products of high quality are sometimes hard to detect by the untrained eye or by a dealer who lacks the necessary tools to test the products.
"As long as China allows these manufacturers to produce these ( fake ) legal tender coins, it is an act of war when one country counterfeits another country's legal tender currency. So this is very, very serious." states Mike Maloney, author of the #1 book on gold and silver investing.
So you maybe wondering "Is counterfeiting REALLY a problem?" YES! Investors and Collectors are spending their hard earned money for products that are barely worth the box they're shipped in! Sadly, these counterfeit products are made in the image of some of the most trust and respected mints in the world: The U.S. Mint, Canadian Mint, Perth Mint, etc. (just to name a few)
AND there are also a few counterfeit numismatic coins that have been sold to dealers and buyers at a very cheap rate. These fake coins are usually the Silver Morgans, Walking Liberties, old coins from Great Britain, old Spanish & Austrian, etc.
*Governments CANNOT protect Bullion Investors, but CAN protect Coin Collectors! Read The Hobby Protection Act of 1973. In 2012, the Industry Council for Tangible Assets ( ICTA ) unsuccessfully lobbied to have HR 5977 passed in the U.S. Congress. The proposed bill is an extension of The Hobby Protection Act which would cover coin purchases as well.
*DO YOUR RESEARCH!
*Pay very close attention to "where" your gold and silver products are coming from.
*Only buy silver and gold products from companies that offer a Money Back Guarantee on all purchases.
*Find a Dealer who is able to test these metals to ensure it is pure gold and silver.
"A good man leaves an inheritance for his children's children..."