Anti-Counterfeiting Security Features in Gold Bullion Coins
Introduction
If you are convinced of the reasons to buy gold and have decided to buy gold coins out of the many ways to invest in gold, understanding the anti-counterfeiting and security features of gold bullion coins is a must.
You will be pleased to know that gold mints worldwide continuously improve their coin designs and incorporate innovative security features, making it harder for counterfeiters to produce fake gold coins.
As one of the largest bullion dealers in Singapore, with over a decade's experience in the gold market, we share with you how to look for these anti-counterfeiting features in popular sovereign-minted gold coins. If you visit our bullion retail store, our staff can also point them out to you!
The Scourge of Counterfeit Gold Coins
The proliferation of counterfeit gold bullion coins has become a growing menace in the global precious metals market. With advancements in counterfeiting techniques, fraudulent coins are increasingly difficult to distinguish from genuine ones, posing significant risks to investors and undermining confidence in bullion trading.
Counterfeit coins often mimic authentic bullion's appearance, weight, and dimensions, with some even incorporating tungsten cores to replicate gold's density. Tungsten is often used in fake gold bars, coins, and jewelry because it has a density that is very similar to that of gold. Therefore, a well-made coin with a tungsten core and thin gold plating weigh very similarly to a genuine gold coin.
These fakes have surfaced across various marketplaces, including online platforms, where unsuspecting buyers are frequently targeted. In response, leading sovereign mints like the Royal Canadian Mint and the Royal Mint have invested heavily in incorporating sophisticated security features into their bullion coins.
Security Features on American Eagle Gold Coins
Missing Reed or Notch
In 2021, the US Mint introduced a reed pattern variation to American Eagle 1 oz gold and silver coins as an anti-counterfeiting security feature. The presence of reeds on the edges of a coin is a rather old protective feature of medieval coins to prevent the filing or clipping of coins.
The US Mint's reed pattern variation extends the reed concept by having a missing reed or notch that changes position with each year's coin release. For example, the missing red on the 2021 American Eagle gold coin is at the 6 o'clock position with the obverse side facing up, 7:30 for the 2022 coin, and 9 o'clock for the 2023 gold American Eagle coin.
The US Mint calls this missing notch an 'overt' security feature. According to the Mint, there are also 'covert' anti-counterfeiting features that were not revealed.
The general consumer consensus gathered online showed that consumers were skeptical of the effectiveness of the missing notch as a security feature since it can be easily replicated in counterfeit coins once its position is known. Additionally, some felt that any covert security features were useless in safeguarding Gold and Silver Eagle buyers since they were not revealed.
Security Features on Canadian Maple Leaf Gold Coins
The Royal Canadian Mint was one of the first mints to introduce modern anti-counterfeiting features to its coins. Three security features are present in Canadian Gold Maple Leaf coins: a micro-engraved maple leaf, radial lines, and specifications verified by Bullion DNA.
Micro-Engraved Maple Leaf
Since 2013, the Royal Canadian Mint has enhanced the security of the Canadian Maple Leaf Gold coin with a micro-engraved maple leaf security feature. This small, detailed maple leaf, laser-etched within the larger maple leaf design, is positioned near the coin's stem and contains a unique laser-engraved number, a two-digit number illustrating the coin’s 21st Century year of issue. This number cannot be seen by the naked eye, only visible under magnification.
Radial Lines
Since 2015, the Royal Canadian Mint has incorporated micro radial lines into the background of both sides of the Gold Maple Leaf coin. These fine, intricate lines are precisely machined to within microns, forming a light-diffracting pattern that adds another layer of security, making it even more challenging for counterfeiters to replicate the coin's design.
BullionDNA
In 2014, the Royal Canadian Mint (RCM) began to apply its proprietary Bullion Non-Destructive Activation (BullionDNA) technology to Gold Maple Leaf coins. BullionDNA was also introduced for Silver Maple Leaf coins in 2015.
According to the Royal Canadian Mint, BullionDNA records the micro-engraved maple leaf security mark from every die used to produce Gold and Silver Maple Leaf coins in the mint's secure database. The data stored is images encrypted with a string of codes.
Bullion dealers registered as BullionDNA dealers with the mint are then issued a specialized BullionDNA device. A sample coin is then inserted into the device, and the dealer uses an associated software to take a high-resolution photo of the coin. This photo is matched to the image in the mint's database, verifying if the coin is registered with the mint.
While BullionDNA seems promising as an anti-counterfeiting measure, it should not be entirely relied upon for authenticating Canadian Maple Leaf gold and silver coins as it challenges the will of counterfeiters to be able to obtain similar equipment for precise micro-engraving. When it comes to testing precious metals, it is best to rely on non-destructive testing methods that penetrate and authenticate the coin's material, such as testing for celerity (speed of sound), density, electrical conductivity, and magnetic susceptibility.
Security Features on UK Britannia Gold Coins
The Royal Mint was among the first in the global minting industry to embrace state-of-the-art picosecond laser technology. Typically used in fields like medicine and aerospace, these lasers enable the mint to produce exceptionally detailed coin designs at a submicron level, creating indents that are 200 times thinner than a strand of human hair.
Four key security features were minted into gold Britannia coins in 2021, making them what The Royal Mint describes as "the world's most visually secure bullion coin." These features were also minted into UK Britannia silver coins.
Latent Image
Latent image technology, commonly associated with security features in coin minting, is also widely used in other fields for authentication and anti-counterfeiting purposes, such as in banknotes, passports, and identification documents. It creates visual elements that are only visible under specific conditions, such as certain angles of light, magnification, or lighting types.
The latent image of the UK Britannia gold coin is located within a circular area near Britannia’s trident. It is like a hologram that changes from a padlock to Britannia's trident, depending on the coin's viewing angle.
Micro-Text
Micro-text laser inscription involves using precision laser technology to etch microscopic text onto surfaces, creating intricate details that are invisible to the naked eye but can be viewed under magnification. Like latent images, this technique is widely used in security printing, such as on passports, ID cards, and currency, as well as in industrial applications like product authentication and traceability.
The phrase "Decus et Tutamen," meaning "An ornament and a safeguard," is inscribed along the border of the design using advanced laser technology. This intricate micro-text enhances the coin's aesthetic appeal and serves as an additional layer of security.
Tincture Lines
To enhance security, The Royal Mint has brought back the classic technique of tincture lines, a method that applies intricate colors and patterns to metal, making them extremely difficult to replicate. This traditional artistry adds a layer of complexity to coin designs, reinforcing their authenticity.
Smooth tincture lines are found on Britannia's shield, creating light and dark tones of the United Kingdom flag.
Surface Animation
On the UK Britannia gold coin, micro-details are etched using these advanced lasers to create the visual effect of waves rolling behind Britannia’s figure. As the coin is rotated, these patterns appear to come to life, demonstrating the technology's ability to produce dynamic, detailed imagery that enhances both the security and aesthetic appeal of the coin.
Security Features on Australian Kangaroo Gold Coins
Micro-Engraved Letter
The Perth Mint introduced a security feature in Australian Kangaroo gold coins in 2019. The letter "A" is micro-engraved on the reverse side of the coins, enhancing the coin's security by making it harder to counterfeit. While there is little information on the placement of the micro-engraved letter, it is speculated that it could follow the placement in silver Kangaroo coins - within the letters "AUSTRALIA" inscription, only detectable under magnification.
Example of the micro-engraving in a silver Kangaroo coin.
Bullion Coins With No Known Security Features
Not all sovereign bullion gold coins are designed with anti-counterfeiting security features. The following coins do not have security features such as micro-engraving and special latent images like the abovementioned bullion coins.
- American Buffalo gold coin
- Chinese Panda gold coin
- Austrian Philharmonic gold coin
- South African Krugerrand gold coin
Despite not having modern security features, these coins continue to be some of the world's most recognizable and popular gold coins. It is possible that security features could be introduced in future issues of these coins.
Tips to Avoid Buying Fake Gold Coins
While the security features introduced by the various international mints are innovative and a step forward in deterring gold coin counterfeiting, such features do not guarantee that a gold coin is genuine since they can be copied with advanced technology. Whether bullion gold coins have or do not have specially designed security features, the following tips will benefit you as a gold buyer.
#1 - Always Buy From Reputable Bullion Dealers
The first line of defence for gold investors is to buy gold only from reputable bullion dealers. This cannot be emphasized enough! Reputable precious metal dealers are substantially invested in the bullion business for the long term. In a high-value industry such as precious metals, consumer trust is essential and highly prized. Therefore, the chances of buying fake gold coins from a well-known bullion dealer will be significantly lower than that of an individual eBay seller.
#2 - Gold Can Be Easily Tested
One of the benefits of buying from reputable bullion dealers is that they often have gold testing equipment onsite to test the gold bar or coin you are purchasing. Testing gold is not necessarily a difficult process. Certain testing methods can be easily performed, such as checking the bullion's dimensions, using the weighing scale, electrical conductivity measurement (ECM), or magnetism test.
To give the best results, at least two testing methods should be used to authenticate the gold coin or bar. Never rely on only one method of gold testing.
#3 - Avoid Deals That Are Too Good to Be True
People are commonly scammed by too-good-to-be-true deals that appeal to their greed. Scammers offer such deals at prices that are hard to decline.
In our experience, gold bullion is consistently bought above the gold spot price even when the industry does not have a shortage of gold. You hear right. It is normal for bullion dealers to buy gold above the spot price. Even on rare occasions where a bullion dealer offers a price below the spot price to clear stocks, it is only marginally lower, not a huge discount from the spot price.
Buy Gold Coins at Our Singapore Bullion Retail Store
Silver Bullion's precious metal retail store in Singapore is well-stocked with investment-grade gold, silver, and platinum bars and coins to meet your investment needs. Our experienced and friendly staff can answer your questions about the security features of gold coins or bullion investing in general.
We also have testing equipment such as weighing scales and electrical conductivity measurement (ECM) testers that can authenticate the precious metals you purchase, giving you absolute peace of mind that they are genuine.