Representative Forms of Fakes and Counterfeits of PRC Modern Commemorative Coins

by http://www.fakecoin.info

The first fake form is: imitation, directly making counterfeits.

The main characteristics of fake Chinese gold coins:

1. Use of copper gilt and low quality silver as the material of production;

2. Sand blast work done coarsely with only one layer;

3. Embossment impaired, strokes of Chinese characters are rough, surface is not level;

4. ink is not evenly distributed, easily leading to various phenomenon such as discoloring and exposure of white;

5. there is no similar craftwork or pattern to the fake.

Differentiating between authentic and fake certificates:

Characteristics of authentic certificates:

1. verify that the certificate contains the signature of the current director of the People's Bank of China.

2. printed on the same official print paper as for the Renminbi.

3. imprinted with colorless fluorescent emblem of the Central Bank and a fake-proof watermark, moreover, every certificate contains micro print design.

Characteristics of fake certificates:

1. photocopy of the original made on regular print paper. Writing is not crisp and the certificate number is not aligned on one horizontal line;

2. usually lacking the emblem of the Central Bank and the fake-proof watermark; those that have them are not clear;

3. the price appears directly on the certificate, and added on top are the seals of the People's Bank of China, Chinese Gold Coin Corporation and the name of a minting factory;

4. Other than the certificate of authentication, oftentimes in addition includes the verification report of the regional quality inspection department or the notarial deed report from the notary office.

The distribution channels of fake coins:

1. No stable retail facility. Usually temporary sale points take place in libraries, memorial centers, post office, hotels, etc.

2. Through various methods such as telemarketing, door-to-door or Internet sales, the method ensures the same-time exchange of money and the product.

3. Impersonating employees of the Chinese Gold Coin Corporation hawking products.

4. Overseas, the distribution channels of fake coins are mostly auction retail websites such as Ebay and Ioffer.

The second fake form uses the concept of swiping badge for coin.

According to related provisions of the <> of the People's Republic of China: "The People's Bank of China can issue commemorative coins as needed", "the coin's theme, face value, design, material quality, pattern, specification, issue quantity and time" etc. are determined by the People's Bank of China.

These days in society, there are some businessmen who have labeled the commemorative badges that they sell as gold or silver coins. There are also other businessmen who have combined Chinese themes with foreign face values to sell off their badges as commemorative coins for distribution in the market. They attempt to confuse the concept of badge and coin among consumers. Chinese precious metal commemorative coins are legal tender of the People's Republic of China. Their coin currency is the Renminbi "Yuan".

The most obvious distinction between commemorative coins and badges is: coins are issued by the People's Bank of China and possess the country name and face value while the badges do not possess these features.

Classic examples of how commemorative badges imitate coins:

Read the rest of this article

Fake Chinese Silver Lunar Ox with only 1% silver

Recently while busy at work, Mr. Tian suddenly received a phone call from a stranger, who wanted to sell him a type of commemorative album that contained commemorative coins of the Chinese Zodiac. The salesman indicated their high collection value and offered to provide “drop-in service”.

Upon seeing this album, Mr. Tian was beside himself and inspected it carefully. The album was packaged in a fancy box. Inside there were 5 silver coin bars commemorating the Year of the Ox, each were beset with a commemorative seal. Every coin and seal were marked as weighing 30 g and a 99.9% silver content. Mr. Tian also noticed that the box contained an inspection sampling document approved by the Province of Guangdong, though this document indicated only the original would be covered.

“The salesman showed me the ticket price for the album which was marked at 5800 Yuan per set.” Finally after some negotiation, the salesman agreed to sell the set at a discounted price of 2000 Yuan.

To ensure peace of mind, Mr. Tian brought the album he purchased to the inspection center at the City of Tangshan’s Quality Inspection Bureau of Gold, Jade and Other Precious Products in order to verify the authenticity of this set of coins. He was shocked by the results. The coins and seals that are individually marked to contain 99.9% silver in fact only contained a little over 1%. The principal materials found were copper, nickel, and zinc. Copper and zinc comprised, on average 40 to 50%, of the materials. Not only this, what was clearly marked as weighing 30 g, the actual weight of the individual coins and seals was only little more than 20 g, almost 10 g of difference.

“Since this is a commemorative product, it must have a trade name. In addition the product must clearly indicate the amount of precious metal contained and the product’s issuance number. Numbers cannot overlap as each is unique and the total corresponds to the total issued. Moreover, every issue has a corresponding certificate of authenticity.” Ms. Xiaoling Zhou from the Quality Inspection Bureau at Tangshan indicated. The album that Mr. Tian purchased had no issuance number and certificate of authenticity. Without the certificate, the inspection document provided can only cover a batch sample but cannot serve as an authenticity certificate for the commemorative album that Mr. Tian had purchased.

Accordingly, the inspection center at Tangshan’s Quality Inspection Bureau of Gold, Jade and Other Precious Products has specifically warned avid collectors about things to look for before purchasing precious metal commemorative coins. Buyers need to understand among other things the total number of issues, specific dimensions, the amount of precious metal content, designs on both sides, the minting facility, and the packaging of each set of coins that are issued by specific governmental organizations. Having this knowledge will facilitate the inspection process when making a purchase. The coin’s actual weight must match with the standard weight. If there is a significant difference, it is safe to assume that the coin is false. Furthermore, it is very important to demand for the certificate of authenticity which is the only piece of document that explicitly states all the official coin data including the issuance number. This certificate should be stored for safekeeping. If there’s doubt over the authenticity of the product, it should be taken into an inspection center for verification as soon as possible.

source: fakecoin.info

Fake Chinese Coin Sellers on Ebay

Check out this blacklist before bidding or purchasing Chinese modern coins, coin sets or Chinese silver bars on Ebay.
http://china-mint.info/fakechinesecoinsellers.html

Fake Coins Big Business in China

This was an old article written by Mr. Richard Giedroyc last year.

Fake Coins Big Business in China
By Richard Giedroyc
September 04, 2007

Most world coin collectors will sooner or later come into contact with counterfeit coins of the Chinese Empire and from the period of the republic. Coin dealer Stephen Album's comments on finding these coins for sale in markets throughout the Peoples' Republic of China have been published in this column in the past.

There are two types of counterfeit coins -- contemporary and modern. Contemporary counterfeits are of more interest academically since they were produced to deceive merchants and consumers when spent. Modern counterfeits of collector coins are produced for a different reason, that reason being because coin collectors pay a premium for certain genuine older coins for their collections.

Up until recently, the majority of Chinese counterfeit currently appearing in markets are coins that are modern copies of earlier issues coveted by collectors. Now, however, current legal tender coins of the PRC are being counterfeited as well. And, it appears to be big business.

The counterfeiting has become so blatant that the Nanfang Weekend newspaper in the city of Nanfang recently interviewed two employees of a merchant in the counterfeiting trade who explained just how open the trade in counterfeit coins has become.

The two persons interviewed simply identified themselves as B Zai and A Wei and as employees of what the newspaper called a "fake coin retailer" in the city of Guangzhou, which is the capitol of the southern province of Guangdong.

Their employer is not the counterfeiter, but is simply a distributor who purchases the fake 1-yuan coins wholesale, then sells them to local merchants at the discounted price of 35 fen each (It takes 100 fen to equal one yuan; 7.72 yuan equal one U.S. dollar, according to the most recent issue of MRI Banker's Guide to Foreign Currency.) The merchants apparently then use the bogus coins in transactions, knowing fully well these are counterfeit coins.

How big is the business? According to A Wei, who identified himself as being in charge of sales, it is big enough that there are competitors and that territorial disputes happen all the time.

A Wei gave some details about the distribution chain as well. He said his boss purchases the counterfeits from a major operator he identified as Shun Ge. Shun is based in Guangzhou, but relocated late in 2006 to the Hubei Province capitol of Wuhan because of what the newspaper described as "a crackdown on fake money businesses."

Shun in turn was also interviewed by the Nanfang Weekend, a surprising feat that illustrates just how the trade actually operates in the full view of law enforcement. Shun told the newspaper his products were made by what he called "the best manufacturer in central Hunan Province," and were sold in cities in Guangdong and Hunan provinces.

Shun is quoted as saying, "Most coin identification machines cannot detect them from genuine ones."

Shun admitted he has contacts not only in organized crime (what he called the "underground world"), but in the government as well.

Don't get the false impression corruption is rampant among Chinese government officials. Being a corrupt government official in China means you are taking a big risk. Corrupt officials sometimes find themselves being executed in the PRC for such crimes as accepting a bribe. In fact, criminals being executed in the PRC are required to purchase the bullet with which they will be shot.

The Ministry of Public Security recently listed eight cities including Guangzhou and Wuhan as major targets for counterfeit coins. In September 2006, the minister held a meeting with police from four provinces, then conducted raids on counterfeit coin factories in all four provinces, including in the city of Changsha in Hunan.

The July 6 issue of the China Daily newspaper reported that eight tons of counterfeit coins were seized in one of the 2006 raids. The factory was reported to have been hidden under a pigsty. During the first eight months of 2006, law enforcement in Hubei confiscated more than 10.52 million 1-yuan coins, according to the newspaper.

Ministry of Public Security Officer Li Ziyong is quoted in the China Daily story as saying, "Coins are simple to copy as they do not have anti-counterfeit safeguards."

How fake coins are being made in China?

The below site shows how fake American， Chinese and other coins are being made in China. There are 24 pages with pictures.
http://coins.about.com/od/worldcoins/ig/Chinese-Counterfeiting-Ring/Chinese-Fake-Coin-Minting.htm