This newly made fake is certainly deceiving some collectors as we’re seeing it appear in recent submissions. Learn how to identify it!

Genuine 1885 – Click To Enlarge	Counterfeit 1885 – Click To Enlarge

Recently this unusual fake, believed to be of new manufacture, has appeared in NGC submissions. Although not particularly deceptive, NGC has received a handful of them.

Our best guess as to why: it’s not a coin that anyone really would expect to be counterfeited. It demonstrates that fakes of just about every issue exist and it’s worthwhile to be vigilant when buying uncertified coins or from an unfamiliar source.

There are obvious clues that identify this 1885 nickel as a fake.

First, the devices (design elements) show a pebbled or rough texture that is unlike that seen on any authentic examples. Knowing the texture of a coin’s surface does require a degree of familiarity with authentic examples, but it can also be the easiest telltale of a fake.

Authentic proof Liberty Nickels have crisp design features and smooth or very, very fine grained devices. Large nooks and crannies visible throughout the design are the hallmarks of this copy. Compare an enlargement of the date area with that of a genuine example — the real coin is on top.

The second giveaway that this coin is bad is the shallowness of its design elements. Note how the Liberty’s ear dissolves into the fields. Same with the hair detail above her temple and at top of her neck.

The shape of these elements will be crisp on an authentic specimen and clearly separate from the fields with a sharp delineation. Other elements of the design are similarly not crisp. Look at the stars. On genuine proofs, the intersecting lines will be clear. Here, the first star is especially weak and the others are rounded and amorphous.

Learning to pick out clues like those mentioned above are a great starting point to spotting fakes.

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In a jointly-issued consumer advisory (below) the groups caution the public not to purchase any so-called “replica” coins because they may be in violation of federal law. They also urge consumers to only purchase genuine rare coins from reputable, professional dealers or face the risk of losing money on copies that are illegal to re-sell.

Below is the consumer protection warning issued by (in alphabetical order) the American Numismatic Association (www.money.org), the Industry Council for Tangible Assets (www.ICTAonline.org), Numismatic Guaranty Corporation (www.NGCcoin.com), Professional Coin Grading Service (www.PCGS.com) and the Professional Numismatists Guild (www.PNGdealers.com).

Hobby periodicals report that more than a million counterfeit coins manufactured in China have been fraudulently sold in the United States posing a significant financial risk for unsuspecting consumers. Buyer beware! Consumers who buy an item based only on its perceived rarity and who have no knowledge as to how to determine whether the coin is genuine subject themselves to great risk of losing their money

The American Numismatic Association (ANA), the Industry Council for Tangible Assets (ICTA), Numismatic Guaranty Corporation (NGC), Professional Coin Grading Service (www.PCGS.com) and the Professional Numismatists Guild (PNG) urge consumers to educate themselves before making purchases: know what you are buying and purchase only from reputable, experienced rare coin dealers (professional numismatists).

“We believe many of these counterfeits subsequently are being resold as genuine rare coins in online auctions and at flea markets and swap meets,” said Clifford Mishler, ANA President.

“Millions of dollars already have been spent on these fakes and potentially millions more may be unwittingly lost by consumers who mistakenly think they’re getting a genuine rare coin,” warned Paul Montgomery, PNG President.

It is a violation of United States federal law to sell unmarked replicas. The U.S. Hobby Protection Act, first enacted in 1973 (Public Law 93-167 15 US Code §2101 et seq) requires manufacturers and importers of imitation numismatic items to mark them plainly and permanently with the word, “COPY” in accordance with the Code of Federal Regulations (16 CFR part 304).

Thousands of coins described as “copy” or “replica” are listed for sale in online auctions every day. There also are numerous reports of replica coins being exported from China without the word, “COPY,” incused in the surface as the law requires. On most on-line offers, photos of the replica depict the word, falsely showing consumers a different product than the one they’re actually buying.

“We believe many of these are simply counterfeits that eventually will be purchased for significant amounts of money by unsuspecting buyers,” said Fred Weinberg, ICTA Chairman.

Coin World, a respected weekly hobby publication, recently reported that 99 percent of the “replica” items sold into the U.S. market do not contain the required “COPY” markings. One counterfeiter in China told the publication he already has produced and sold more than one million coins.

To protect the public, our organizations are aggressively working to

• combat the unrestricted imports of counterfeit coins;
• halt the fraudulent offerings in online auctions;
• explore asking for legal actions by federal law enforcement agencies against importers and re-sellers of illegal numismatic items;
• explore united legal action by our organizations to protect the public.

“Even during the recession, the United States rare coin market remains vibrant and active with an estimated $5 billion in annual sales. We urge collectors and investors to become knowledgeable and use common sense when buying,” said Steven R. Eichenbaum, NGC Chief Executive Officer.

“Some of the counterfeits are of extremely high quality, so if you don’t know rare coins, you’d better know your coin dealer. You should only buy from reputable and knowledgeable dealers who have a return policy with regard to non-genuine coins,” said Don Willis, President of the Professional Coin Grading Service.

In addition, there are reliable rare coin authentication companies whose certified coins are guaranteed for authenticity. Two such companies, among others, are Numismatic Guaranty Corporation (NGC) and Professional Coin Grading Service (PCGS).

For a copy of the informative booklet, What You Should Know Before You Buy Rare Coins, send $1 to the Professional Numismatists Guild, 3950 Concordia Lane, Fallbrook, CA 92028

Related posts:

1. Hobby Leaders Discuss Anti-Counterfeiting Actions
2. When Fakes Become Collectable
3. Facts about Fakes