Beware of high mint state numismatic counterfeit gold coins

Counterfeit gold coins: The price of the high mint state numismatic coins is not the only red flag flying in front of you if you are considering buying one of these expensive coins. The other red flag is that these coins are easier to counterfeit than lower grade coins. Why? Because there are two basic ways to determine if a coin is counterfeited, by measuring its circumference and by weighing it. The scary part of buying one of these coins is that, after each coin is graded, either by PCGS or by NGC, or in-house by a coin company, it is encapsulated in plastic, thereby eliminating the possibility of measuring the coin’s circumference and its weight.

If you find yourself the unfortunate victim of having bought one or more of these expensive MS coins, you will be faced with the stark reality of how to determine the coin’s authenticity if there is no way to check either the coin’s circumference or its weight? That’s why there is big money in counterfeiting and counterfeit gold coins. Imagine some shysters taking an ounce of gold, adding some copper alloy and minting an MS65 $20 Liberty that they can sell to the unsuspecting public for $3,500 to $10,000. Not a bad profit when you consider that they have about $650 per coin in materials.

Now you might ask the question, “If the two independent grading firms grade every coin from MS61 and above, how can a counterfeit gold coin get past them?” That’s a good question. I’m not saying that these companies are dishonest, but I personally talked to a man many years ago whose brother works for one of these two firms. I won’t mention the name of the firm for obvious reasons. One day one of the largest coin wholesalers in the country sent several old gold coins to his firm and told them to grade the coins MS65. The company, without grading the coins, obediently encapsulated them in their official plastic cases, certified them MS65, and sent them back.