A Look Inside A Chinese Silver Coin Counterfeiting Ring

Is Your Silver Stack REALLY Silver, Or Merely A High Quality Chinese Counterfeit? 



For several years, rumors have swirled of silver investors being scammed by fake Chinese counterfeits of US silver coins – mainly from online auction sites.  
We now have VISUAL PHOTOGRAPHIC EVIDENCE of the Chinese Counterfeiting Ring the Fake Silver Coins Are Coming From:

The Chinese Counterfeiting Ring Exposed in the Photos Below is Not A One Man Operation. 
This Appears to Be a Full-Fledged Counterfeiting Operation, and is Suspected of Pumping Out THOUSANDS OF FAKE SILVER COINS into the US Coin Market Every Month – Mainly to Unsuspecting Customers of Online Auction Houses With eBay Reportedly Being Hit the Hardest.

While for the past several years the counterfeiters have focused on pumping out circulated silver Morgan dollars, they are reportedly now expanding into the Graded Coin Market, placing fake silver coins into graded NGC and PCGS slabs.

The photo below reportedly reveals the actual fake silver coins being placed inside fake NGC and PCGS slabs:

This coin press is striking fake Silver Morgan Dollars:

The fake Morgans coming off of this press appear to be in Proof condition:

Close-up of fake silver Morgan dollars:

Most small coin dealers believe they can spot fake silver coins by sight or touch, but These are HIGH quality counterfeits:

Not only are the fake silver coins not authentic, but as our readers would imagine, are not even pure silver, as the Chinese counterfeiters have created look-alike alloys that closely mimic silver’s density. 

In the photo below, a female Chinese worker is applying edge lettering to a bag of fake silver coins:

As the photo below reveals, these guys are minting much more than fake morgan dollars:

Fake silver dies in the photo include fake numismatic Greek Drachmas and British Crown coins as well as US coins.

Two male Chinese workers run a fake silver coin press:

For perspective, the boxes/briefcase depicted in the picture below appear to be monster-box sized boxes of silver containing thousands of fake-silver coins, using the blue step stool as a reference point. 


One interesting thing to note is it appears that all of the fake silver coins are counterfeit rare/numismatic coins, rather than bullion coins or rounds like modern Silver Eagles, Silver Maples, or Silver Philharmonics, which reveals they’re being passed as high-quality rare/numismatic coins, and not purely for their “silver” content. 


A male worker arranges inventory on metal shelving:

The photos also depict rare Chinese silver bars and ingots: 

And they aren’t simply limiting themselves to fake US gold and silver coins, apparently they also specialize in Fake Chinese Antiques and Art:


As well as fake ancient Chinese coins:

And counterfeit fiat currency:


Fake Slabbed Coins (although the photos did not reveal any fake slabbed NGC or PCGS coins as have been rumored to be appearing in the market):

While even only 5 years ago fake Chinese silver coins were fairly easy to spot with the naked eye by anyone with even a little experience in the coin market – these leaked photos appear to confirm rumors that have been circulating the industry over the past year – that high quality Chinese counterfeit silver coins are now appearing, duping even experienced professionals when not properly examining and testing coins prior to purchase.

Fake silver coins are becoming a problem in the market, and you can expect the scope of these Chinese counterfeiting rings to only grow as their technology improves and silver prices rise as the bull market accelerates. 

How Can the Average Silver Investor Protect Himself From Fake Silver Coins?

  1. Know Where Your Coin Dealer Sources Their Silver Coins. 
    At SD Bullion, We Source Over 99% of Our Silver Coins Directly From the World’s Leading Mint’s Refineries, and Authorized Purchasers.   We’ve Never Purchased an Ounce of Anything From ANYONE in China Outside of Official Gold and Silver Panda Coins from the Chinese Mint.  Every Single Coin or Bar Purchased From the Secondary Market (inventory purchased from customers, etc) is Tested for Purity, and is Rejected if the Coin/Bar Fails to Meet Labeled Weight or Purity.
  2. Make Sure Your Coin Dealer TESTS Their Coins, and Know HOW They Are Testing Their Coins. 
    Ping Tests and Water Density Tests Are Typically Not Accurate Enough to be Relied Upon.
    Among Other Purity Tests, SD Bullion Uses the Sigma Metalytics Gold and Silver Purity Testing Scanner to Verify the Resistivity of the Metal.

Even small differences in alloying—for example crown gold (91.67% gold balance copper) and 90% gold (90%gold balance copper) are different. Can the wrong metal or alloy give a Resistivity that looks right?

It is almost impossible to duplicate another coin’s resistivity, weight, and size. For example, silver is the most conductive metal known, so it is virtually impossible to duplicate. Gold is the third most conductive metal (only copper is between them). Platinum and Palladium have almost identical conductivities but are easy to distinguish in other ways.In principle it would be possible for an alloy to be developed that would mimic, for example, American Gold Eagles. But combined with the appearance and weight of the coin, the fake would be obvious.  A coin that has about the right weight (for example using tungsten to fake gold) would have a totally different resistivity than gold. Among Other Tests, Using Resistivity One Verify the Purity and Distinguish Between:
Gold – Pure
Gold – 91.7% 22K Crown
Gold – 90%
Gold – American Eagle
Gold – 98.6%
Silver – 99.99% Pure
Silver – 99.9% Pure
Silver – 92.5% Sterling
Silver – Morgan Dollar
Silver – Peace Dollar
Silver – 90% Coin
Silver – 96% Britannia

For larger investors, a Resistivity Scanner Such as the Sigma Metalytics Gold & Silver Purity Scanner Can Provide Added Peace of Mind That Their Investment is Real and Authentic. 

Photos courtesy oJinghua Shei

100 oz Silver Bars