Counterfeit detection primer -- periodic post

What follows is a distillation of many people's opinions and
observations, including my own. Additions and corrections are
welcomed. This document is copyrighted -- please don't republish
elsewhere. HMTL version available he http://rg.ancients.info/guide.

Counterfeit detection primer -- periodic post

- - -
IN A NUTSHELL: Counterfeit coins are an unavoidable reality in the
numismatic marketplace, particularly with ancient coins though with
modern coins as well. Learning the diagnostics of coin forgeries as
well as the characteristics of authentic coins, buying from reputable
dealers, avoiding sellers you don't know who create "private" actions,
avoiding sellers with a no-return policy claiming they're selling
coins from an estate, and buying smart in general can minimize your
exposure to coin counterfeits. The study of counterfeits, along with
protecting you, can also be interesting in itself.
- - -

Perhaps the most frequent question collectors of ancient coins are
asked by noncollectors is, "How do you know it's real?" The
disconcerting answer sometimes is, "You don't." Not with all coins,
not with certainty.

The fact is, significant numbers of counterfeit ancient coins are sold
as authentic coins. But counterfeiting can be a problem for collectors
of modern coins too. Sometimes coins are altered from a common variety
to a rare one, a form of counterfeiting. The issue of counterfeits
shouldn't deter you from collecting either ancient or modern coins.
The number of ancient coin fakes on the market is dwarfed by the
number of genuine coins, which were produced in staggering numbers in
ancient times. The same is true with modern coins. But counterfeiting
is an issue that any savvy collector needs to face.

Counterfeit coin detection, particularly with ancient coins, is as
much art as science. Because ancients were struck by hand and because
of the wide variability of their designs, even the best experts are
sometimes fooled. Some of the most prestigious dealers in the world
bought large numbers of counterfeit ancient coins as authentic coins
at the 1999 and 1988 New York International Numismatic Conventions,
coins that only later were discovered to be forgeries. Many dealers
contacted buyers and refunded their money, but many of these fakes
remain on the market.

The most frequently seen counterfeit or altered U.S. coins, according
to PCGS's 1997 book Coin Grading and Counterfeit Detection, include:

* 1856 Flying Eagle cent
* 1909-S VDB Lincoln cent
* 1955 double-die Lincoln cent
* 1916-D Mercury dime
* Cincinnati commemorative half dollar
* 1804 Bust dollar (a million dollar rarity)
* 1893-S Morgan dollar
* Saint-Gaudens high-relief double eagle

Other frequently seen counterfeit or altered U.S. coins, according to
collectors and dealers, include the 1914-D and 1922 Lincoln cents,
1943 bronze Lincoln cent, 1913 Liberty Head nickel (a million dollar
rarity), and 1937-D three-legged Buffalo nickel.

Unless you're a specialist, you should think carefully about buying
any of the above coins unless they're in the slab of a legitimate
grading/authentication service, such as PCGS, NGC, ANACS, or ICG.

With ancient coins, even low-cost specimens are counterfeited today.
As Wayne Sayles points out in his 2001 book Classical Deception:
Counterfeits, Forgeries and Reproductions of Ancient Coins, you can no
longer assume that it's impractical for someone to make deceptive
fakes of inexpensive coins, including someone living in relative
poverty in Eastern Europe who may have advanced engraving skills or
even a university degree in metallurgy.

Counterfeits Online

Fakes of modern and ancient coins sold on eBay as authentic coins are
a frequent problem, though if you follow the online coin discussion
groups, these coin forgeries are frequently exposed. One common scam
is for a seller to create an auction of a counterfeit coin, or many
counterfeit coins, while preventing people from contacting bidders,
which is the most common way that this kind of fraud is stopped
(despite the fact that doing this is against official eBay policy).
Never buy from a seller who does this unless you know who the seller
is.

One scam involving ancient coins has been running on eBay for about
two years. The seller puts up for auction every couple of weeks the
same several dozen cast counterfeits using a new eBay I.D. each time.
All are private auctions. The scam artist always changes the
categories of his auctions about a day before they close, meaning
people following coin auctions don't see them until then. This gives
inexperienced buyers enough time to bid on them but doesn't give eBay
enough time to act on complaints from those more experienced who know
about this scam. With each new I.D., the scammer sometimes creates
feedback for himself by buying about a dozen inexpensive non-coin
items, while other times he keeps his own feedback private as well.
eBay typically cancels each new I.D. this scammer creates (though not
always), and each time it sends out warning emails to winning bidders,
but often this is after they have already paid. Many hundreds of
people have been scammed out of tens of thousands of dollars.

You shouldn't count on eBay to prevent or stop the auction of even the
most blatant modern or ancient counterfeits or prevent sellers with a
history of selling large numbers of counterfeits from engaging in
online fraud. eBay has a policy of noninterference, stating that it's
just a venue bringing buyers and sellers together. You're largely on
your own.

Despite the problem of fakes, you shouldn't indiscriminately, and
irresponsibly, condemn coins you see online -- online pictures often
provide only a fraction of the information you need to properly
evaluate a coin's authenticity. But there's nothing wrong with
questioning a coin online. If others feel the coin is not suspicious,
the seller of the coin will undoubtedly wind up with favorable
publicity, and this can lead to more bids and a higher selling price.

The coin industry prefers not to discuss too loudly the issue of
counterfeits for fear of scaring off collectors. But knowledge is
power. As a collector, the more you know, the greater the chance
you'll avoid getting taken. Don't overreact and run away. But don't
put your head in the sand either.

Ownership of Counterfeits

The study of counterfeits can actually be an enjoyable part of the
hobby of collecting coins, ancient as well as modern. Some collectors
enjoy creating a "black cabinet" (also called "black museum") of
counterfeit coins for educational purposes, as help in counterfeit
detection, and as examples of the black art of counterfeiting. In his
American Numismatic Association (ANA) video titled "Famous Fakes and
Fakers," Ken Bressett, editor of the Red Book and past president of
the ANA, points out that some counterfeits can be considered "true
numismatic items" that are "enjoyable to study and collect."

The issue of ownership of counterfeit collectable coins, however, is a
controversial one, more so with U.S. coins, which are still legal
tender regardless of their age, than ancient coins. The American
Numismatic Association recommends that you turn in counterfeit coins
to it or the U.S. Secret Service.

But hundreds if not thousands of auction houses, dealers, and
collectors keep counterfeits of collectible coins on hand, and the ANA
recognizes this. Those who elect to keep counterfeits should clearly
identify them on the labels of their holders to help prevent them from
someday inadvertently being sold as genuine coins, says Robert W.
Hoge, former curator at the American Numismatic Association, current
curator at the American Numismatic Society.

The legalities regarding mere possession of these bogus coins aren't
clear. Two areas of U.S. law deal with counterfeit coins. Title 18,
Part I, Chapter 25 (Counterfeiting and Forgery) of the U.S. Code,
Sections 485, 489, and 492 deal with counterfeits of U.S. and world
coins. The Hobby Protection Act of 1973 (Title 15, Chapter 48,
Sections 2101 through 2106 of the U.S. Code, plus 1988 amendments)
deals with counterfeits of ancient coins.

Nothing in the above statutes says that simple possession of
counterfeits of collectible coins is illegal, and no court in the U.S.
has ever ruled on the legality of this. According to Armen R. Vartian,
the most visible numismatic legal expert in the U.S., "The statutes do
not criminalize the mere possession of counterfeit money."

What's more, no court case has ever specifically addressed the issue
of the legality of simple possession of counterfeits of collectible
coins, though some cases have touched upon this area in a tangential
way. For there to be "judicial clarity," a court ruling has to address
this issue specifically, according to Vartian, a lawyer, numismatist,
Coin World legal columnist, and author of the book A Legal Guide to
Buying and Selling Art and Collectibles.

On the other hand, Vartian says it's illegal to possess counterfeit
coins if your intention is to defraud others with them (sell them as
genuine), and it's illegal to refuse to surrender them if the
government asks you to, which it's entitled to under the law. That's
why Vartian and others recommend that those who maintain black
cabinets of counterfeit coins do so quietly.

Others feel, however, that mere possession of counterfeits of
collectible coins is illegal. Ultimately, it's all opinion, with some
opinion being considerably more informed than other.

Perhaps the bottom line is that nobody has ever been arrested or fined
in the U.S. for owning a counterfeit of a collectible coin since the
Secret Service, an agency of the U.S. Treasury, began policing the
money supply in 1865 and undoubtedly from before this time as well.
Although the Secret Service has confiscated high-visibility
collections of counterfeits of U.S. coins, this hasn't happened in
some 30 years. The ownership of counterfeits of collectible coins a
non-issue today in the eyes of the authorities, who understandably
devote their resources primarily toward going after those who make and
pass fake bills.

Protecting Yourself from Fakes

The most commonly repeated advice to avoid getting cheated by
unwittingly buying a counterfeit as an authentic coin is to buy from a
respected dealer or auction house who offers a lifetime guarantee of
authenticity with return privileges. You can learn who the respected
dealers are by asking around online. Be careful with European coin
auction houses. According to the language in their catalogs, most
offer a very limited authenticity guarantee, typically lasting only
about a week.

In the age of the Internet, deals can often be had through eBay buying
from fellow collectors who are upgrading their coins or otherwise
selling them off or buying ancient coins from direct sellers
personally bringing them into the U.S. from Europe. Even here, though,
sellers should offer a lifetime guarantee of authenticity with return
privileges in case the coin later turns out to be fake.

With both modern and ancient coins, you should be especially wary of
sellers who claim to be selling coins from an estate and who don't
offer return privileges. Similarly, avoid sellers who say they can't
guarantee a coin's authenticity (this is against eBay rules but still
happens, with sellers trying to plant the idea in bidders' minds that
they just might get a real bargain).

If you have any suspicions, don't bid. The old maxim applies: "If a
deal looks too good to be true, it probably is." (See my periodic post
"How to avoid getting cheated on eBay" for more tips.)

Counterfeit Detection

The most common reason a coin is condemned by an expert as being a
forgery is, "It doesn't look right." Dealers who've handled many
thousands of authentic coins are usually (not always) able to pick out
fakes, even if they're not always able to verbalize why. Part of this
involves knowing what authentic coins of a particular type typically
look like. Part of this involves knowing what counterfeits typically
look like.

Indications of a cast counterfeit include:

* Soft details
* Soapy surfaces
* Round, mushy boundaries where the devices and legends meet the
coin's field
* Pitting from air bubbles created during the casting process.
However, pitting may not appear if pressure, centrifugal, or vacuum
casting was used. Also, genuine coins often show some pitting, or
porosity, caused by corrosion, though these pits are typically rougher
at their edges, wider at their openings, and less round than pits
caused by casting.
* If a coin has cracks in its surfaces, the cracks will likely have
smooth edges, not sharp, visible particularly under a microscope, even
with centrifugal casting.
* Raised lumps of metal. However, some genuine ancient coins can show
the same if made from rusty dies.
* A seam around the edge where the two sides of the mold joined
together. However, it's often filed off, in which case file or
polishing marks are sometimes visible, particularly under a
microscope. On the other hand, ancient coins made from cast flans may
show evidence of a casting seam.
* A casting sprue, or protuberance at one point on the coin's edge.
This can also be filed off, in which case file or polishing marks are
sometimes visible, particularly under a microscope. As with a casting
seam, ancient coins made from cast flans may show evidence of a
casting sprue.
* The absence of flow lines from striking, visible particularly under
a microscope
* Light weight (or sometimes too heavy)
* The existence of the an identical coin -- not only one made from the
same dies but also one with the same centering, strike (including flan
cracks), wear patterns, surface damage (scratches, pits, corrosion),
and patination/deposits. However, forgers may retouch molds to remove
surface damage or add marks and alter patination/deposits on the
cast's surface.
* Slightly convex obverse and reverse
* A harshly cleaned coin -- harsh cleaning to the point of smoothing
can hide evidence of casting

Indications of an electrotype counterfeit include:

* Edge seam in the form of a straight line (may be filed off)
* Light weight (or sometimes too heavy)

Indications of a struck counterfeit include:

* Unrealistic styling of devices
* Incorrect letters (it's more difficult for forgers to get the
legends right than the devices)
* Overly flat and uniform fields, particularly with ancient coins,
caused by the use of a hydraulic press
* Die match of a known forgery
* Light weight (or sometimes too heavy)
* Wrong metal
* With ancient coins, the absence of any crystallization. Some
counterfeits are artificially corroded and aged with acids, while
other times ancient metal is used.
* With ancient coins, the absence of surface deposits, the presence of
artificial, unrealistic deposits, or the absence of signs of deposits
having been cleaned off the coin's surface
* With ancient coins that are pressed instead of struck, long rather
than short flow marks, smaller and more triangular die cracks, and --
sometimes though not always -- lettering that's evenly raised around
the circumference of the coin. Alteration by abrasion, etching,
chemical degradation, or coatings can hide some indications of
pressing.

Testing

There are also various quantitative tests you can do, or have done, to
help with counterfeit detection. Often, any one test or tests aren't
conclusive, but they can provide important information.

1. Weighing a coin, then comparing it with the common weight range for
that coin.

2. Measuring a coin's diameter, then also comparing it with the common
range for that coin.

3. Specific gravity testing

This is a useful if not infallible test. You need to compare a coin's
weight in two different media, such as air and water, using a
precision scale. However, accuracy can be compromised by tiny air
bubbles adhering to the coin's surface and, with ancient coins,
internal porosity and voids within the coin's interior.

The specific gravity of gold is 19.3, silver is 10.5, copper is 8.8,
bronze is 8.7-7.8 (varies with how much tin, lead, and other metals
it's alloyed with), brass is 8.6-8.4 (varies with how much zinc it's
alloyed with), lead is 11.4, tin is 7.3, zinc (cast) is 6.9, iron
(cast) is 7.2, and aluminum is 2.6.

4. Ring test

Modern silver coins ring when you tap them. Modern non-silver coins
don't, not in the same way. Ancient silver coins don't, not in the
same way. With ancient coins, the reason is crystallization, which
results when the silver alloy leaches copper and other impurities over
time, causing voids between the silver grains. You can sometimes see
under magnification feather-like crystals on the coin's surface,
especially near the edges, though other times the crystallization is
completely internal and invisible.

To perform a ring test, balance the coin on the tip of your finger and
tap it gently with another coin. With modern coins, you can wear a
cotton glove to prevent fingerprints. You need to be careful you don't
drop the coin or tap too hard. Highly crystallized ancient coins can
break easily. If the coin emits a long resonating ring, like a bell,
this indicates that it's a modern silver coin. If it's an ancient
coin, this indicates it hasn't become crystallized, that it's likely a
modern forgery, because crystallization dampens the ring. If the coin
rings for only a second or two, this indicates it may be only slightly
crystallized. If the coin emits a tink and doesn't resonate, this
indicates it may be moderately crystallized. If the coin emits a thud,
this indicates it may be heavily crystallized.

The ring test is far from foolproof, however. Sometimes forgers use
the flans of authentic, though inexpensive, ancient coins to produce
old-metal counterfeits of expensive ancient coins, but this typically
happens only with rare or otherwise pricey specimens. Counterfeits
made of new silver having small, thick flans don't resonate as well as
larger, thinner coins. Counterfeits of new silver may not ring at all
if the flan is cracked, occluded with a gas bubble, or filled with
another substance. Cast or electrotype counterfeits made of new silver
also may not ring. Heavily alloyed silver coins or coins made of
bronze, lead, or other base metals will also not ring like pure or
nearly pure silver coins.

5. Non-destructive x-ray elemental analysis with a scanning electron
microscope

This is another useful if not infallible test that analyzes the
elemental composition of a coin, but only at its surface to a depth of
a few micrometers. The coin is bombarded with electrons, producing
x-rays. Because each element has a unique x-ray signature, it's
possible to detect which elements comprise the coin's surface, down to
a sensitivity of about 0.1 percent (trace elements may not be
detected).

Authentication

Often, a dealer will agree to look at a coin you're questioning,
particularly a dealer you've bought from in the past, and offer his
opinion regarding its authenticity.

All of the established, legitimate grading services that deal with
U.S. coins provide authentication along with grading, including:

PCGS (Professional Coin Grading Service)
http://www.pcgs.com

NGC (Numismatic Guaranty Corporation of America)
http://www.ngccoin.com

ANACS (Amos Certification Service)
http://www.anacs.com

ICG (Independent Coin Grading Co.)
http://www.icgcoin.com

The following services provide ancient coin authentication:

ACCS (Ancient Coin Certification Service)
http://www.davidrsear.com/certification.html

IBSCC (International Bureau for the Suppression of Counterfeit Coins)
http://www.iapn.ch

The British Museum, Department of Coins and Medals
http://www.thebritishmuseum.ac.uk/cm/cmhome.html

Education

Learning about counterfeits can be fun, in addition to protecting you.
The following are books about counterfeit U.S. coins:

Coin Grading and Counterfeit Detection
PCGS
Ballantine Publishing Group, 1997

Counterfeit Detection Reference Guide
Bill Fivaz
Stanton Printing, 1997

Detecting Counterfeit and Altered U.S. Coins: A Correspondence Course
J.P. Martin
American Numismatic Association, 1996

Official Guide to Detecting Altered & Counterfeit U.S. Coins &
Currency
Marc Hudgeons
House of Collectibles, 1981

Standard Catalog of Counterfeit and Altered United States Coins
Virgil Hancock and Larry Spanbauer
Sanford J. Durst, 1979

Counterfeit, Mis-struck, and Unofficial U.S. Coins: A Guide for the
Detection of Cast and Struck Counterfeits, Electro-types, and Altered
Coins
Don Taxay
Arco Pub. Co., 1963

The following Web sites provide information and/or photos of fake
ancient coins:

Calgary's Modern Fakes of Ancient Coins
Information and photos of fakes of ancient coins
http://www.calgarycoin.com/reference/fakes/fakes.htm

Barry & Darling Ancient Coins' Counterfeits and Counterfeiters
Information and photos of fakes of ancient coins
http://www.ancient-times.com/newsletters/n13/n13.html

Doug Smith's Fakes
Information and photos of fakes of ancient coins
http://www.ancientcoinmarket.com/ds/fakes/fakes.html

Twelve Caesar's Fakes & Forgeries
Information and photos of fakes of ancient coins
http://www.12caesars.com/Fakes___For...forgeries.html

Dennis Kroh's Ancient Coins & Modern Fakes
Information about fakes of ancient coins
http://members.aol.com/kroh/fakes.html

CGB-CFG Fakes
Photos of fakes of ancient coins
http://www.cgb.fr/monnaies/articles/faux/indexgb.html

Jencek's Modern Forgeries of Ancient Coins
Photos of fakes of ancient coins
http://www.ancient-coins.com/shop/ag....26909*sf3lp4?

Forgeries of Ancient Roman and Greek Coins
Photos of fakes of ancient coins offered for sale as authentic coins
on eBay
http://www.chijanofuji.com/ancientforgeries.html

Modern Forgeries Now Turning Up in Uncleaned Lots
Photos and diagnostics of fakes of very inexpensive Roman bronze coins
http://members.aol.com/petronicoins/uncleanedfakes.html

Fakes Gallery
Photos mostly of Slavey replicas of ancient coins
http://www.ancientcoinart.com/fakes_gallery.html

Slavey Replicas
Photos of Slavey replicas of ancient coins
http://people2.clarityconnect.com/we...ei_repros.html

Slaveys at Ancients.info
More photos of Slavey replicas
http://www.ancients.info/gallery/sho...ry.php/cat/511

Discussing Fakes

The following are two e-mail discussion groups specifically about
counterfeit coins:

CoinForgeryDiscussionList
http://groups.yahoo.com/group/CoinForgeryDiscussionList

ACFDL (Ancient Coin Forgeries Discussion List)
http://groups.yahoo.com/group/ACFDL

The Usenet discussion group rec.collecting.coins can be a good
resource for getting opinions about questionable U.S. coins. You can
access it through a newsreader such as Forte Agent, e-mail program
with newsreading capabilities such as Microsoft Outlook Express, or
the Web through Google Groups at http://groups.google.com.

More Information

Counterfeit Coin Bulletin
http://www.money.org/publicationsdept.html
Subscription periodical about recently discovered U.S., world, and
ancient counterfeit coins American Numismatic Association (ANA) and
the International Association of Professional Numismatists (IAPN)

Counterfeit Coin Club
http://www.brindin.com/hyperdict/ccc
Group in Canada that puts out a subscription quarterly newsletter
about counterfeit coins

Here are some Web pages I've put together about counterfeit coins:

Draped Bust Dollar Counterfeits
http://mywebpages.comcast.net/reidgo...ts/page_7.html

Bulgarian School Counterfeits of Apollonia Pontika Drachms
http://www.rg.cointalk.org/bulgarian_school

Parion Hemidrachm and Forgeries
http://rg.ancients.info/parion

Thracian and Thasos Tetradrachm Forgeries
http://rg.ancients.info/thracetets/forgery.html

Three Alexander the Great Fourees
http://mywebpages.comcast.net/reidgold/fourees

Deks: Three Ancient Greek Dekadrachms, Fake and Real
http://mywebpages.comcast.net/reidgold/deks

Ultimately, as long as you're careful, you shouldn't fret over the
possibility of getting fooled by counterfeits. As Sayles points out,
virtually all serious collectors of ancient coins, for instance, will
sooner or later unwittingly add a fake to their collection, and this
is not necessarily a sign of naivete. With U.S. coins, the grading
services have greatly reduced the chances of being cheated with
high-end specimens.

--

Email: (delete "remove this")

Coin Collecting: Consumer Protection Guide:
http://rg.ancients.info/guide
Glomming: Coin Connoisseurship: http://rg.ancients.info/glom
Bogos: Counterfeit Coins: http://rg.ancients.info/bogos

Reid Goldsborough wrote:
What follows is a distillation of many people's opinions and
observations, including my own. Additions and corrections are
welcomed. This document is copyrighted -- please don't republish
elsewhere. HMTL version available he http://rg.ancients.info/guide.

Counterfeit detection primer -- periodic post

- - -


cut for the sake of brevity

Coin Collecting: Consumer Protection Guide:
http://rg.ancients.info/guide
Glomming: Coin Connoisseurship: http://rg.ancients.info/glom
Bogos: Counterfeit Coins: http://rg.ancients.info/bogos

Dear Mr. Goldsborough;
Yes it is I, the big complainer, back again and ready for more.
However I thought I would try a new approach this time and offer up some
helpful ideas for the prolific writer that you are.
The primers are a good idea of course for the new collectors that
join our ranks. But I had a thought that may give you some ideas, if you
want them. In the case of this primer, I would like to see it be more
specific. You mentioned a list of a few coins that are commonly
counterfeited. How about giving specifics. Like what indicators should
we look for to know if it is counterfeit or not? What Markers show that
this is a true coin and not one that is bad, etc. this could be very
informative information and would, in my case at least, make these
articles far more interesting.

--
Winde Walker
ICQ 125272334 /// ANA #R-206576
I thought I was wrong once, but I was mistaken.

http://home.comcast.net/~winde2000/

Winde Walker wrote in message ...

You mentioned a list of a few coins that are commonly
counterfeited. How about giving specifics. Like what indicators should
we look for to know if it is counterfeit or not? What Markers show that
this is a true coin and not one that is bad, etc. this could be very
informative information and would, in my case at least, make these
articles far more interesting.

Thanks for this suggestion. If you go to the section of this post
subtitled "Counterfeit Detection," you'll see spelled out in some
detail the markers you're asking about. For markers or diagnostics of
specific counterfeit coins, I'd recommend the PCGS book Coin Grading
and Counterfeit Detection.

--

Email: (delete "remove this")

Coin Collecting: Consumer Protection Guide:
http://rg.ancients.info/guide
Glomming: Coin Connoisseurship: http://rg.ancients.info/glom
Bogos: Counterfeit Coins: http://rg.ancients.info/bogos