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Message: Re: cause for concern?

Dec 02, 2009 01:13AM
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Dec 02, 2009 01:36AM

Dec 02, 2009 07:14AM

drnols -

I, too, have been concerned about getting scammed on the tungsten issue, so last week I wrote to the maker of Fisch instruments (no plug intended). Fisch makes instruments which can detect fake gold coins. Here is the reply I received:

Hi there,
Thanks for writing. Apologies for the slow reply.

The Fisch marked Krugerrand will works with all the Angels of the same weight. As it works with the American Eagle and the Britannia.

Definitely getting a lot of questions on tungsten. Here is my response:

The talk of tungsten fake bullion coins and small 1oz. bars has been around for at least 30 years now, which is how long I have been in this business. But none have ever surfaced. The theory is one thing, the practical challenges are another.

Metals with a density comparable to gold that could be used to make a fake coin correct in both weight and size are the platinum group metals and tungsten. The price of the platinum group metals precludes their use. Tungsten is an extremely hard, yet brittle metal that would be very difficult to work into a passable fake coin. You cannot strike a tungsten fake, the dies would be destroyed.

A tungsten fake coated with gold is going to look like a chocolate coin wrapped in gold foil. It will have none of the definition of a real gold coin. which is the result of the striking of the coin. To be effective, the core of the coin would have to be tungsten with a soft gold outer to allow for the striking of the coin. So only a very small part of the coin could be tungsten, reducing the faker's profit. Assuming the technical challenges of keeping a wafer of tungsten in the middle of a gold "wrapping" can be overcome.

If you were setting up to make fake coins, you would soon realize "Well, the premium on a 1oz American Eagle is 6% but the premium on a rare, St Gaudens Double Eagle in top condition is 6,000%, perhaps I should make those rather" And you could fake them with the right gold content (a lot easier than trying to make a tungsten fake gold coin) and still make more than faking a gold bullion coin. Why fake a Timex if you can fake a Rolex?

Yours sincerely,
Ken Rutherford - Fisch Instruments
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Dec 02, 2009 04:20PM

Dec 02, 2009 04:22PM
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