Every few months someone walks into our shop with a box of gold and silver they purchased online. Sometimes everything is genuine. Sometimes it isn’t.
Recently, another coin dealer shared the story of an elderly customer who reportedly spent hundreds of thousands of dollars buying precious metals through a large online marketplace. Much of the gold is now suspected to be counterfeit. Unfortunately, stories like this are becoming more common as fake bullion has become easier to manufacture and easier to sell online.
Counterfeit Gold Has Improved
Years ago, fake gold bars were usually easy to spot. They had obvious spelling mistakes, poor engraving, incorrect weights, or cheap packaging.
Today’s counterfeits can be much more convincing. Some are made with dense base metals, convincing packaging, serial numbers, and even fake assay cards. From photographs alone, many look completely legitimate.
The same problem exists throughout the coin and precious-metals market. Counterfeit coins and bullion are more common than many buyers realize, and attractive packaging is not proof that an item is genuine.
Where People Get Into Trouble
Many buyers assume that if an item is listed on a large online marketplace, it has already been verified. In reality, many marketplaces simply connect buyers and third-party sellers. While there are many honest dealers selling online, there are also dishonest sellers who take advantage of inexperienced buyers.
The biggest risk comes from buying bullion from sellers with no established reputation in the precious metals industry.
The same basic risk applies when buying gold or precious metals from private sellers. A low price may look like an opportunity, but genuine bullion is already extremely easy to sell through established markets.
How We Test Gold
At Oakton Coins, we use professional testing equipment to verify precious metals. Depending on the item, we may use X-ray fluorescence (XRF), weight and dimensional analysis, magnets, or other non-destructive methods.
Most counterfeit bullion can be identified quickly without damaging the piece. You can learn more about how we test gold and precious metals.
A Holder or Assay Card Is Not Enough
Professional-looking packaging can make counterfeit bullion more convincing, but packaging itself is not authentication. Fake assay cards, serial numbers, certificates, and even counterfeit coin holders exist.
This is one reason we still verify bullion even when it arrives in what appears to be original or certified packaging. Our guide to graded modern gold and silver bullion explains why a holder may add collector value but should never replace normal authentication.
If You Already Bought Gold Online
Don’t panic.
Many online purchases are completely genuine. If you’re unsure, bring your gold or silver to a reputable coin dealer for testing before you store it away or attempt to sell it in the future.
Finding out today is much better than discovering years later that your investment isn’t what you believed it to be.
The Best Protection
Whether you buy online or locally, purchase from established dealers with a long track record, clear return policies, and a reputation to protect. Saving a few dollars isn’t worth the risk if you’re spending thousands.
If you have questions about bullion you’ve already purchased, we’re always happy to test it and explain what you’re looking at.
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