FAKE SILVER: A Warning for New Stackers!!
Steemsilvergold is a wonderful community on steemit and we are rapidly expanding as people become enlightened to the Shiny Side. Once they get there first piece of silver the Stackitis is aggressive and quick to take hold! So this is a warning to all new stackers, be aware of the many fake products on the market especially eBay where buyers are paying full price for these pieces of crap!
It is not always obvious that a coin or bar is fake so always buy from reputable dealers or sellers with 100% positive feedback. Never buy bullion directly from China because that's where most of it comes from. And remember that if it looks too good to be true, its probably FAKE!
All these products were found on Alibaba and are made to decieve and take advantage of us stackers. People sell these on eBay by the thousand so learn how to test your silver and stay one step ahead of the Con-men. I'm making this post because @gomatthew recently showed a bar marked 999 German Silver which he believed was real because it wasn't magnetic. The fakers are constantly changing their tactics to make their bars pass our tests.
Neodymium magnets will detect fakes with an iron core, but because silver is Diamagnetic they can also detect other types of fake plated products by observing the speed that it 'slides' over the neodymium magnets. Another way is by chemical analysis using the scratch test and special acid but won't always detect thickly plated items unless they are cut open. Specific gravity testing is a way to calculate the density of the metal using basic weighing equipment. The best method is by using an XRF tester (X ray frequency) which scans the metallic properties to identify its unique signature, these are expensive to buy but jewellery shops usually have them. @jbcoin just did a post where he used a metal detector to clearly identify a fake bar which he then destroys its well woth a watch to see what the fakes are made of!
I think the risk a fakes turn away many new investors. I know when I started I almost stopped since I felt vulnerable, and I still have a ton to learn. I did decided to never buy off Ebay unless it was one of the big houses to mitigate risk on bullion. I also went heavy with 90% when I started because of in my view there was less risk in dimes and quarters.
I remember a few years ago when the Alibaba fake silver rush flodded my area of the world. It was a nightmare. I had a bunch of 10 ounce Engelhard bars and wanted to diversify into some 1 ounce rounds that I was interested in. Brought them into my local shop and was blown away. Shop owner brought some fakes and I could not tell the difference. The weight was spot on too.
It scared me. I used to scrounge some other spots that "we buy gold" and would get some good deals on generics and bars. But I knew these guys wern't truly testing what was coming in. It slowed my stacking to a crawl. I wonder if somewhere in my stack I have a few fakes. ugh
I hope not. : )
Now in China they produce a lot of false coins
Alibaba is the scourge for silver stackers. I think most the experienced know what to look out for but anyone new to the hobby is so easily ripped off. That's who these people prey on.
absolutely i can spot most a mile off but theres alot of new stackers on here now that need to know. my very first coin purchase was a fake panda on ebay and it still hurts!
Great information, there is a lot of fake silver in the market place. I see it all over Ebay.
also be wary of anything marked '100 mills' thats just referring to how thick the silver plating is.
I got offered one of the German bars on Tuesday and I said no thank you, unfortunately there are many people buying these knock off coins and bars and selling them as the real thing. I have seen them going through local auctions sold as the real thing. Makes me sad
Great advice! It really is a shame there are so many fakes.
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I always buy from well known dealers. I may have one fake silver panda as it weighs a little more than expected. Good post.
We bought our first fake a few months ago. We were pretty sure it was a fake, but the situation was just on e of those "Oh, what the hell" deals. A new auction house opened up, it was their first auction. They had a "gold" ounce that was not getting bid on, but then MOST of the stuff in the auction was not getting bid on. It would take 2 hours to drive down and look at it, which would take more gas than the price... so we bought it and sure enough... but 25 bucks... had it been real... it was worth the gamble!