Silver and gold investors need to be increasingly vigilant: The bull market in precious metals has apparently led to counterfeiters becoming even more active. Particularly in the case of silver, a new generation of counterfeits has emerged in recent months in parallel with the jump in the price of silver to new record highs in euros and dollars, causing even experienced collectors and investors to wonder. Particularly affected are world-famous bullion coins such as the Krugerrand from South Africa and the Vienna Philharmonic from Austria. These counterfeits are no longer the crude copies of earlier years, but deceptively genuine-looking reproductions with a fine surface and correct-looking dimensions.
Increasingly sophisticated counterfeits in circulation
A cursory glance used to be enough: Dull metal, blurred contours or incorrect fonts immediately revealed forgeries. Things are different today. Modern production technology - especially embossing machines and casting processes in Asia - enables an almost perfect imitation of the original. The weight and diameter are often exactly the same, and even the edge lettering and the embossed edges look convincing. Only under a magnifying glass do clear deviations become apparent, which allow conclusions to be drawn about the true origin.
This development is explosive for investors, as many of these counterfeits are not made of precious metal, but of cheaper alloys such as brass, copper or zinc, which are then electroplated with silver or gold. They look like genuine coins - but have no material value whatsoever.
Example 1: The South African Krugerrand
The Krugerrand is probably the best-known bullion coin in the world. Minted in gold since 1967 and in silver since 2017, it is considered a classic among bullion coins. Unfortunately, it is also popular with counterfeiters.
Front (portrait of Paul Kruger)
The original coin shows a finely modelled portrait of the South African statesman Paul Kruger with clearly recognizable facial features, sharp beard structures and a discreetly grained background. The letters "SUID-AFRIKA" and "SOUTH AFRICA" run precisely along the edge, the serifs are fine and even.
In fakes, the face appears flatter and smoother, almost "softly drawn". The beard shows no differentiated structure, only rough wave forms. The lack of depth between the strands of hair, which are clearly separated in the original, is particularly striking. The transitions between the face and beard are also less precisely worked out in the counterfeit product.
The lettering differs subtly but clearly: on the forgery, some letters - such as the "A" and "R" - are slightly distorted or of different widths. It is also noticeable that the edge pearls (the small dots along the edge of the coin) are irregular: Some appear flattened, others set too close together.
Back (Springbok)
The iconic springbok motif is finely and vividly modeled in the original. The tense musculature, the fur structure and the vivid shadows cast on the rocky background are clearly recognizable. The landscape in the background is clearly differentiated, with visible hills and vegetation details.
In the forgery, on the other hand, the springbok appears smoother and more lifeless. The fur structure is almost completely missing, the ground under the hooves is simplified and shows hardly any relief. The transition between the subject and the background field is also flatter. Under a magnifying glass, tiny casting spurs or fine lines can be seen, which would not occur during embossing - a sure sign of a post-casting.
Example 2: The Vienna Philharmonic
The Austrian silver coin "Vienna Philharmonic" is one of the best-selling bullion coins in Europe. It is minted by the Austrian Mint from 999.9 fine silver and impresses with its detailed design. This coin has also become a target for modern counterfeiters.
Picture side (instruments)
The original shows a finely crafted composition of eight instruments - including cello, violins, harp, bassoon and horn. Particularly striking is the delicate depiction of the harp strings and the stringed instruments, which run exactly parallel and end sharply when enlarged. The background has a uniform, slightly matt grain, which is typical of Austrian M int coins.
In the forgery, it is immediately apparent that many of these fine lines have been lost. The harp strings appear too thick or incomplete, sometimes only seven or eight strings can be seen instead of the correct number. The surfaces of the violins appear uneven and the contours unclean. The letters of the "Vienna Philharmonic" lettering are also slightly distorted - the "R" and "K" are differently proportioned and the inner edges of the letters are not cut exactly.
Another feature: the background of the forgery is too smooth, almost reflective. The original, on the other hand, has a fine, sand-matt structure that refracts reflections.
Value side (organ and nominal)
The back with the large organ of the Musikverein is worked out in detail in the original: You can recognize ornaments, fine column reliefs and small lines on the organ pipes. The lettering "REPUBLIK ÖSTERREICH", "1 UNZE FEINSILBER" and "1,50 EURO" are clearly proportioned and show clean serifs.
The ornamentation on the forgery is clearly simplified. The columns appear flat, the pipes show hardly any depth and small decorative elements are missing. Under a magnifying glass, you can also see irregular transitions between the lettering and the field - an indication of a poor engraving template. The year is also often positioned slightly differently or executed in the wrong typography.
General technical characteristics of silver counterfeits
Despite the increasing quality of modern restrikes, they have certain technical weaknesses that investors should be aware of:
- Field texture: Originals have an even, fine grain. Forgeries often show fields that are too smooth or irregularly shiny.
- Depth of relief: Re-embossing appears flatter or excessively "soft". Fine details - such as beard lines, strings or ornaments - are not fully pronounced.
- Font and border design: Letter shapes, spacing and serifs vary slightly. Border beads are often irregular or asymmetrical.
- Surface defects: Small pores, casting bubbles or lines indicate a casting process, whereas genuine coins are minted.
- Material composition: Counterfeits are usually made of base metals, galvanically coated. The weight, density and sound differ measurably from the original.
The book on fraud & counterfeiting with gold
In his book The Gold You Trust, Walter Hell-Höflinger provides a comprehensive insight into the world of fraud and counterfeiting in the precious metals business. He not only draws on his experience as a sworn and court-certified expert for precious metals, but also places particular emphasis on enabling investors to independently recognize security features and thus strengthen their trust in physical gold. Further reading is particularly worthwhile for private investors who want to protect themselves against increasingly perfect counterfeits.
How investors can protect themselves
Even though the appearance of counterfeits is improving all the time, investors can invest safely by taking a few simple measures:
- Only buy from certified dealers. Gold & Co. checks every coin carefully and guarantees its authenticity and fineness.
- Check details. With a 10x magnifying glass, differences in font, structure and edge design can be easily recognized.
- Use technical tests. Weight, diameter and thickness can be measured with simple devices. A magnetic test or a sound test can provide further information.
Counterfeiters are getting better and better, but those who know their bullion coins have a clear advantage. With a little knowledge of the typical characteristics and a healthy dose of skepticism, even deceptively genuine imitations can be unmasked. Those who rely on certified specialist dealers such as Gold & Co. protect their assets - and at the same time collect genuine values that will last.
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