Gold coins offer a safe investment for people seeking a safe harbor for their wealth, but that safety is only provided if the investor purchases real gold coins.

The increase in gold trading brought on by the worldwide economic recession has created an environment ripe for hucksters selling fake or deceptively advertised gold coins. Savvy investors should know all the tricks used by unscrupulous sellers to hawk their fake gold coins.

Fake gold coins aren’t just non-gold coins, they’re also gold coins that have less gold content than that advertised by the seller. It’s actually easier to sell fake gold coins with an inaccurate gold content listed because the layman collector won’t notice the difference in gold content.

Contrary to what Hollywood suggests, biting into a gold coin isn’t the best way to determine whether it’s real or fake. While gold is a soft and malleable metal, there are lots of other metals that are also soft and can easily be made to look like gold. Besides, even if you bite into a gold coin and discover it’s a fake because it’s too hard, you might chip your tooth and end up with an expensive dental bill.

Avoid getting conned

The best way to avoid being hustled on a gold coin deal is to do your homework beforehand. Here’s a few tips that you can use to keep from purchasing fake gold coins.

– Research the coin. Before buying a coin from a dealer, learn as much as you can about it. Look up details about the year, the reverse and obverse and other details. If something doesn’t add up, chances are you may be looking at a bogus coin.

– Research the seller. The Internet’s great for checking out reputations. Go to an online gold buyer’s discussion forum and see what other folks have to say about the person you’re thinking about doing business with.

– If the deal sounds too good to be true, it probably is. Gold’s a hot commodity right now because of its rising value caused by the uncertain economy. Not even a fool’s fool would let it go at bargain basement prices in the current market.

– Ask for documentation of authenticity. Many coins come with documents verifying their weight, gold content and manufacture.

– If you’re concerned about a coin you already own, get an expert to check it out. Pawnbrokers and metal dealers have a variety of methods they can use to assess the gold content of your coin.

– Checking the rim of the coin can also be helpful. Fake gold coins are often manufactured in halves and then either glued or fused together. If this is the case, observers can often see a thin line around the edge of the coin.

The draw of gold coins is that they’re a safe investment. But your money’s only safe if it’s invested in real gold coins with real gold value. Before buying coins, take the steps necessary to verify their authenticity.