The Beep Goes On
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Mass Counterfeiting of American Coins
February 27, 2009
by Brian Harring
brianharring@yahoo.com
With the collapsing American economy, many Americans are rushing to invest in gold; either coins or bar, and also silver. One of the most popular forms of this investment are American coins. Where there is a need, there is always someone to fill it and in this case, the filling consists of the massive counterfeiting of gold coins, silver coins, and even Swiss gold bars in China. Initially, it appeared they were only faking Morgan dollars, but then it turned out they were also making $20 Liberty, and Indian Head gold $2.50, $5, and $10 coins, of all dates. Evidently, this is extremely easy with today's computer-and-laser-die-cutting technology, and the fakes are being die-struck in vast quantities, not cast, and visually at least, are superb copies.
The good news is that these fakes are readily detectable with a 0.01 - gram scale, as the Chinese in their greed are using lower carats of gold and lower grades of silver than the genuine coins, to maximize profit, and thus, in most cases, the fake coins and bars are lighter than the real ones. In a few cases, the silver coins of high numismatic interest are actually OVER weight - it appears that the supply of accurate planchet stock is a major difficulty for the forgers.
Here are links to a two-part article about this in Coin World Magazine:
http://www.coinworldonline.com/counterfeits/articles/20081203/counterfeit_1.asp
http://www.coinworldonline.com/counterfeits/articles/20081203/counterfeit_2.asp
Note: They are even faking PCGS and ANACS slabs!!:
http://www.coinworldonline.com/counterfeits/articles/20081203/counterfeit_3.asp
A friend who has an extremely wealthy friend in Europe (on the order of several hundreds of millions) asked this person to make enquiries at his bank. The bank told him candidly that indeed, the Chinese are also faking sovereigns, half sovereigns, French 20 Franc gold, and various denominations of Nicholas II Russian Rubles, of all dates, as well as Swiss gold bars. They said any gold bars they are offered for purchase are both weighed and the serial numbers checked with the manufacturers. The Chinese do not know the serial and manufacture date numbering systems on the gold bars, and so that error is quickly detectable.
The US Secret Service has just this week been made aware of this problem, which was new to them, and if they decide to launch an investigation, they have indicated that while they cannot do anything about the operations in China, they can, and will, seize any counterfeit US coins they come across. Dealers in these fakes would also be liable to fines and jail time. Foreign fakes are not under their purview, but if that business turns out to be substantial, there could conceivably be an FBI investigation of fraud in interstate commerce, targeting companies who are mail-ordering fake foreign coins. Individuals who have been cheated might also sue their suppliers - in short, this could turn into a huge mess.
General appearance aside, it is very easy it is to spot fakes - just with a scale reading to 1/00th of a gram, and a table of the correct weights and sizes of the coins or bars they are buying. (In the case of large-size bargold, unless buying from the manufacturer or a reputable bank, the serial numbers need to be verified, so that one does not buy a Chinese bar with a lead or mercury core)
Herewith a listing of what I have uncovered so far:
1; The U.S .Morgan silver dollar. All dates and all mint marks;
2: The U.S. gold coins viz the $2.50, $5.00 and $10.00 Indian head issues
3. The U.S. copper penny viz 1909 S vdb
4. Three gold Imperial Russian roubles from the reign of Nicholas II
5. A gold 20 franc coin with the head of Napoleon I on the obverse
6. The South African Krugerrand
7. British sovereigns and half sovereigns of different monarchs and dates
And in addition, they are also making fake gold bars from the Credit Suisse people.
It was always considered that numismatics as a relatively fraud-free area of collecting, but it appears that a coin collector today has to carry a digital scale around. This doesn't affect me very much, but I too have wondered at the sudden appearance of all the Morgan dollars. Fortunately, the ones I have came down to me from my grandfather, and I'll be very careful picking up individual pieces that fill blanks.
As for Krugerands and similar gold pieces that are traded for bullion prices, it is obvious that the Chinese have lowered the purity and thus debase the value; otherwise, a fake Krug would have as much gold as a real one.
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.
.
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more at http://www.tbrnews.org/Archives/a2921.htm#001
Beep
February 27, 2009
by Brian Harring
brianharring@yahoo.com
With the collapsing American economy, many Americans are rushing to invest in gold; either coins or bar, and also silver. One of the most popular forms of this investment are American coins. Where there is a need, there is always someone to fill it and in this case, the filling consists of the massive counterfeiting of gold coins, silver coins, and even Swiss gold bars in China. Initially, it appeared they were only faking Morgan dollars, but then it turned out they were also making $20 Liberty, and Indian Head gold $2.50, $5, and $10 coins, of all dates. Evidently, this is extremely easy with today's computer-and-laser-die-cutting technology, and the fakes are being die-struck in vast quantities, not cast, and visually at least, are superb copies.
The good news is that these fakes are readily detectable with a 0.01 - gram scale, as the Chinese in their greed are using lower carats of gold and lower grades of silver than the genuine coins, to maximize profit, and thus, in most cases, the fake coins and bars are lighter than the real ones. In a few cases, the silver coins of high numismatic interest are actually OVER weight - it appears that the supply of accurate planchet stock is a major difficulty for the forgers.
Here are links to a two-part article about this in Coin World Magazine:
http://www.coinworldonline.com/counterfeits/articles/20081203/counterfeit_1.asp
http://www.coinworldonline.com/counterfeits/articles/20081203/counterfeit_2.asp
Note: They are even faking PCGS and ANACS slabs!!:
http://www.coinworldonline.com/counterfeits/articles/20081203/counterfeit_3.asp
A friend who has an extremely wealthy friend in Europe (on the order of several hundreds of millions) asked this person to make enquiries at his bank. The bank told him candidly that indeed, the Chinese are also faking sovereigns, half sovereigns, French 20 Franc gold, and various denominations of Nicholas II Russian Rubles, of all dates, as well as Swiss gold bars. They said any gold bars they are offered for purchase are both weighed and the serial numbers checked with the manufacturers. The Chinese do not know the serial and manufacture date numbering systems on the gold bars, and so that error is quickly detectable.
The US Secret Service has just this week been made aware of this problem, which was new to them, and if they decide to launch an investigation, they have indicated that while they cannot do anything about the operations in China, they can, and will, seize any counterfeit US coins they come across. Dealers in these fakes would also be liable to fines and jail time. Foreign fakes are not under their purview, but if that business turns out to be substantial, there could conceivably be an FBI investigation of fraud in interstate commerce, targeting companies who are mail-ordering fake foreign coins. Individuals who have been cheated might also sue their suppliers - in short, this could turn into a huge mess.
General appearance aside, it is very easy it is to spot fakes - just with a scale reading to 1/00th of a gram, and a table of the correct weights and sizes of the coins or bars they are buying. (In the case of large-size bargold, unless buying from the manufacturer or a reputable bank, the serial numbers need to be verified, so that one does not buy a Chinese bar with a lead or mercury core)
Herewith a listing of what I have uncovered so far:
1; The U.S .Morgan silver dollar. All dates and all mint marks;
2: The U.S. gold coins viz the $2.50, $5.00 and $10.00 Indian head issues
3. The U.S. copper penny viz 1909 S vdb
4. Three gold Imperial Russian roubles from the reign of Nicholas II
5. A gold 20 franc coin with the head of Napoleon I on the obverse
6. The South African Krugerrand
7. British sovereigns and half sovereigns of different monarchs and dates
And in addition, they are also making fake gold bars from the Credit Suisse people.
It was always considered that numismatics as a relatively fraud-free area of collecting, but it appears that a coin collector today has to carry a digital scale around. This doesn't affect me very much, but I too have wondered at the sudden appearance of all the Morgan dollars. Fortunately, the ones I have came down to me from my grandfather, and I'll be very careful picking up individual pieces that fill blanks.
As for Krugerands and similar gold pieces that are traded for bullion prices, it is obvious that the Chinese have lowered the purity and thus debase the value; otherwise, a fake Krug would have as much gold as a real one.
.
.
.
.
~~~~~~
more at http://www.tbrnews.org/Archives/a2921.htm#001
Beep
