How Can I Tell If My Gold Coin Is Real?
Identifying whether a gold coin is real or not can be very challenging . Read our guide to identify real gold coins in 6 easy steps!
People consider investing in gold coins and bars a safe and dependable investment. However, like other precious metals and gems, you can be a victim of counterfeited gold. It can be challenging to ensure that the gold coins you purchase are authentic. Fortunately, you can protect yourself against fake gold by following a few precautions.
Below are some things you can do to avoid getting counterfeit gold coins.
How Can You Identify Real Gold Coins?
Follow these steps to ensure you are purchasing real gold coins with genuine value.
1. Purchase From Reputable Dealers
Avoid shady and illegal channels to sidestep acquiring counterfeit gold coins. Choose a dealer or broker with a good reputation in the community and who is registered to buy and sell gold coins. In this way, you reduce your chances of getting scammed.
To verify the quality of your gold coins, take them to a competent and established authority for evaluation.
2. Perform A Magnet Test On The Coins
Gold, as a precious metal, is not susceptible to magnetic forces. Therefore, coins with a high concentration of gold will not respond to magnet tests. It's easy to detect counterfeit gold coins with a simple magnet test as they often contain inexpensive metals. However, a magnet test might not work when counterfeit coins are minted using non-magnetic alloys.
3. Compare The Size And Weight
This test works well, especially for gold coins and bars, as gold is denser than most metals.
To test the purity of a gold coin, you need to compare it with an authentic one. You can also use callipers and a jeweller scale to check the size. A fake gold coin is frequently lighter than pure gold and is easily identifiable.
4. The Colour Might Be An Indicator
A critical step in determining the quality of gold is to look at the entire coin, not just the surface. Imitation metals often discolour when subject to corrosion. Gold does not corrode nearly as fast when exposed to moisture.
Specks of black or green might indicate a false metal beneath the gold décor. A low-quality imitation usually displays these spots when its disguise is incomplete.
5. Conduct The Stamp Test
Look for the BIS Hallmark on gold coins, whether you purchase them online or offline. The gold coin's stamp indicates its purity in terms of karats or fineness. For example, BIS Hallmarks on 24KT 999 gold coins signify 100% purity. Typically, a hallmark consists of:
• Valid purity in fineness
• Valid purity in Karats
Checking the hallmark ensures that the gold coin is authentic, valued, and will have the maximum future value.
6. Beware Of "Too Good To Be True" Offers
If you come across a gold coin offer that sounds too good to be true, it probably is so. You must be wary of such offers, especially those that promise lavish rewards or make inflated claims.
A rational reputable dealer would never sell something at a loss. For dealers to remain profitable, they must charge minor premiums over spot prices to cover their overhead and product minting costs.
Get A Loan Against Your Gold Coin At IIFL Finance
With IIFL Gold Loan, you can fulfil your business or personal needs. We offer the industry's best benefits through our gold loan process to offer you instant funds.
Our loan application process is fast, customer-centered, and ensures you don't have to spend hours filling out lengthy and time-consuming forms. We also offer gold loan calculators to help you estimate the gold loan interest rate and amount.
Frequently Asked Questions
Q1. Can a 22k gold coin stick to a magnet?
Ans. Since gold is not magnetic, a real gold coin of 22k will not stick to a magnet.
Q2. Is a gold coin a good investment?
Ans. Gold coins are not only low-risk investment options but also provide better security, making them stress-free investment options.