PawnMaster Blog

Fraudulent Bullion Becoming More Sophisticated and Harder to Identify

Several years ago I wrote an article for PawnLink.org that highlighted the growing frequency our pawnbroker customers were being exposed to and taken advantage of with fake bullion and replica coins.  Many of these defrauded, poured, and extruded Precious Metal investment pieces started out as legitimate bullion products coming from reputable refineries and banks.  Scammers would drill out actual Gold or Silver from these pieces and back-fill them with materials like Lead or Tungsten rods.  Eventually, we began seeing scammers implementing higher levels of skill to produce replica coins and bullion through minting, electroplating, and even cladding over low value base metal to look like authentic precious metal currencies and investment bullion.

Fake Gold

To the right is a gold chain that GEIB received in with a melt lot. We noticed the chain, along with a few other pieces but something about this piece in particular just didn’t add up to being "RIGHT", so we went a little further on this rope chain.

Posted on 22 Nov 2017

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