How to tell fools gold from real gold?

Dear readers,

Have you ever wondered if the physical gold that you are buying is real gold or fools gold?

Well for the veterans, they’ll probably be able to tell real gold from fools gold in the snap of a finger while new investors can’t differentiate the real from the fakes no matter how they look at them.

Here are some easy tips on how you can separate fools gold from real gold.

Jewelry pieces

Look for some sort of mark as to its karat value in terms of purity. If it is marked with a number after the letter ‘k’ (e.g. 18k, 22k, etc.), it is assumed to be a solid gold alloy with a mixture of gold and other metals unless 24k which¬†means solid gold. Jewelry pieces are seldom made of solid gold as gold is too soft and is easily damaged.

Common bullion coins and bars

Check the markings made by its maker and its weight and dimension. The markings and measurements are usually accurate and not easily faked. Faking these coins are considered illegal in some countries as they are often considered legal tender.

Numismatic coins

Numismatic gold coins are the hardest physical gold for investors to identify. The general market for these coins are usually numismatic collectors who pay a higher premium above spot price of gold for them. The higher premium is also the very reason for the production of fake coins.

To identify the real from the fake, one must be armed with information from books and references about the particular coin. I wouldn’t recommend common retail investors to go into collecting numismatic coins without thorough research. It would be great if the coin could come with a certificate of authencity though that could be faked as well.

In Conclusion

The tips highlighted above are aimed at distinguishing fools gold from real gold through the line of sight. There are other methods of identification through scratching and chemicals which are less desirable because they may damage the coins.

I would recommend all investors to purchase their gold from certified or trusted dealers and financial institutions to have that piece of mind, knowing that your purchase is authentic.

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