The Premier Silver Resource Website
Visit GoldSeek.com
Visit GoldReview.com
Visit UraniumSeek.com

- CLICK HERE TO VISIT THE NEW SILVERSEEK.COM -
Live Spot Silver
Navigation
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes







 
With Silver Soaring, Beware of Who You Buy From

By: Dr. Jeffrey Lewis



-- Posted 25 July, 2010 | | Discuss This Article - Comments:

With silver attracting headlines, cult-like following, and higher prices, silver investors should be on high alert for a scam being perpetrated on the internet.  Newly minted fake coins are finding their way from Chinese counterfeiters to Ebay and then to investors who unknowingly purchase $20 rounds that are in reality only a few dollars worth of metals.   As prices tread higher, these scams will only continue to grow in their influence.  Here's a simple guide to evaluate silver, and whether or not it is indeed real:

 

Does it Look Right?

 

Any coin shop owner or worker should be able to tell immediately whether or not your coin stacks up as a real silver coin.  One of the best ways to see if it is in fact silver is to flick it with your fingernail. For larger, 1 ounce coins, the silver coin should set off a high pitched ringing nose.  Now smack your fingernail against another coin, preferably one of nickel-clad.  You'll find the noise is short, not as high-pitched, and about as dull as the metals in it.

 

What Does it Weigh?

 

Counterfeiters are in the business of making look-alikes, but not perfect coins.  One of the most fool-proof ways to see if your coin is legitimate is to weigh it.  Coins that are counterfeited will have a weight that varies greatly from standard.  Measure it too, as the coins size may be too thick or too thin to be issued by a mint.

 

Check the Edging

 

Many national mint coins have a reeded edge; that is, they have bumps all around the edge of the coin.  Those coins that don't should be inspected more intensely, especially those that are not supposed to have the reeded edge.  Without the reeding, it is far easier to counterfeit a coin.  Look for edges that imply the coin was stamped out of two halves which is an instant red flag and a popular process among counterfeiters.

 

Know Your Source

 

Of the three above tips, none is more important than to know the person from whom you're buying your silver.  Most, if not all, fraudulent silver coins have been sold anonymously over the internet.  Brick and mortar sellers don't have the same leisure of anonymity and aren't interested in losing their business and credibility over scamming a few hundred dollars, whereas fraudsters can open new businesses for a fraction of the benefit of one fraudulent sale. 

 

You should also be privy to the mint or operation that is making the silver rounds you wish to purchase.  Previously, investors could be sure that small coins and rounds were free of impurities or cheaper metals due to their size; however, as silver explodes in price, so does the opportunities for profit in making fraudulent silver coins. 

 

As with any financial instrument, you're best to purchase face to face from someone you know and a vendor with an established reputation for quality products.  While most scammers operate online, not all online vendors are shams, and most with their own dot com are in it for the long run, which means a clean operation.

 

Dr. Jeffrey Lewis

 

www.silver-coin-investor.com


-- Posted 25 July, 2010 | | Discuss This Article - Comments:



Article Archives

SilverSeek.com is presented to you by:

© 2003 - 2011
SilverSeek.com, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of SilverSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on SilverSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of SilverSeek.com, its affiliates or advertisers. SilverSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of SilverSeek.com, is strictly prohibited. In no event shall SilverSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.