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:

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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