Two Simple Ways to Protect Against Gold and Silver Counterfeits

By Moshe Landman

There is no need for you to become a victim of precious metals counterfeiters.

Counterfeiting is a problem that has plagued governments and citizens for centuries. When counterfeit money is introduced into a market, both the currency and people’s faith in the government become devalued.

Recognizing the government’s need to protect the integrity of its currency, America’s founding fathers included in the Constitution a clause granting the new government the power to punish counterfeiting:

“The Congress shall have Power To...provide for the Punishment of counterfeiting the Securities and current Coin of the United States....”  - Article I, Section 8, Clause 6.

In recent years, China has become the primary source of counterfeit gold and silver coins. In fact, any bullion product you can name likely has a Chinese counterfeit version somewhere in the world. These counterfeiters typically use one of two techniques to produce fake gold or silver bullion:

• masking coins and bars made of base metal alloys with a thin outside layer of gold or silver, or
• selling hollowed out gold or silver bullion with thicker outside covers and filled with tungsten, lead, copper or nickel.

The internet has made the distribution of these types of coins and bars much easier than in the past. And, the rare coin market has seen a rise in professionally created fakes as the collector market grows.

The problem is real, but it is easily avoidable…

Two Easy Ways to Protect Yourself

#1 – Buy from Reputable Dealers

Purchasing your precious metals from a reputable professional dealer is an important means of protecting yourself as a consumer. Asset Strategies International has been in business for 34 years, has delivered every order, and guarantees the quality and authenticity of every product purchased.
ASI purchases precious metals from official, authorized distributors who obtain bullion coins and bars directly from the relevant government and private mints. The metals you order through ASI are fully insured until you sign for receipt of them.

And, the various mints are taking precautions to ensure the bullion you receive is not subject to counterfeiting. For example, the Royal Canadian Mint has introduced the security feature of radial lines to their products to make counterfeiting more difficult.

#2 - The Perth Mint Certificate Program (PMCP)

One way to ensure the metals you are purchasing are not subject to counterfeiting, is with what we believe is the best-kept secret in the precious metals industry – the Perth Mint Certificate Program.

The Perth Mint Certificate Program is the only Government Guaranteed certificate program in the world, making it one of the safest ways to own precious metals. The PMCP is operated by Gold Corporation, the successor organization to the Perth branch of Britain’s Royal Mint, founded in 1899. The obligations and liabilities of the Mint are guaranteed by the Government of Western Australia under Section 22(1) of the Gold Corporation Act 1987.

The Perth Mint issues a uniquely numbered Precious Metal Certificate printed on high security paper directly in your name, confirming your legal title to (and the Mint's liability for the safe storage of) a specific amount of precious metal that you own and that is stored on your behalf.

PMCP clients have legal title to precious metals stored in either an Allocated, Pooled Allocated or Unallocated account, where the metals are 100% physically backed by the Government of Western Australia. If a certificate is lost or stolen, a customer can request a new one by confirming their identity with the Perth Mint. The Perth Mint will not subsequently liquidate your metal until they physically receive the originally issued Certificate for verification, providing you with the reassurance that as long as you hold the Certificate, your precious metal is safe from unauthorized sale or collection.

The Perth Mint is not a bullion bank and does not…

• Hold short any precious metals pledged on a Certificate
• Lend or sell your precious metals to third parties
• Use your precious metals as backing for derivatives
• Encumber your precious metals in any way

All deposits are fully backed by precious metals holdings and are fully 100% insured at current market value at all times, at Perth Mint’s expense.

In 1997, the Perth Mint turned to ASI to assist them in creating the PMCP, and we became the first authorized dealer in the world to offer this program. We are here to help you through the process of secure overseas precious metals ownership.

To learn more about purchasing precious metals directly, or through the Perth Mint Certificate Program, send us an email, or speak with a Preferred Client Relations representative by calling 800-831-0007.

Counterfeiting has been around for quite some time. Unfortunately, it will be around in the future as well. That’s a given. But, you do not need to be a victim. And now, you know two simple ways for you to Keep What’s Yours!