While mints take action to guard against counterfeit productions of popular bullion and proof coins from the modern era, thieves are looking back at history to capitalize on the growing interest in historic coins. In particular, US gold coins have been the target of intense counterfeiting efforts designed to take advantage of high gold prices and consumer demand for rare gold coins.
Why Historic US Coins?
There are a number of reasons that counterfeiters are targeting historic US coins. First and foremost, rarity comes into play when you are talking about pre-1933 US gold coins. In reaction to the Great Depression and its intensely negative impact on the American economy, and the banking sector in particular, the United States government seized all US gold coins in 1933. These were melted down into gold bars and used to shore up national reserves.
Naturally, this created rarity going forward as few coins survived those collection efforts. Even though pre-1933 US gold coins had .900 gold content, the lack of availability and historic designs featured on these products makes them a popular choice among modern collectors in particular.
Of course, one of the main reasons for the high level of forgeries among historic US gold coins is technological. There is much less work for counterfeiters to put into creating a good fake because, quite frankly, the technology in use at the time was limited. It is much easier to forge a historic US gold coin than a modern coin with micro-laser engravings and precise markings.
Top 5 Most Common Coins
One look at the list below and it quickly becomes clear that counterfeiters have a favorite coin they love to target. Without further ado, here are the most commonly forged US gold coins (in descending order):
- 1925-D Quarter Eagle
- 1912 Quarter Eagle
- 1911 Quarter Eagle
- 1914 Quarter Eagle
- 1916-D Mercury Dime
There are similarities and differences in the reasoning behind the counterfeiting of all these coins, particularly the US gold quarter eagle coins. Counterfeiting of these coins occurred both prior to 1933 and in the decades following, including in the modern era. The incuse design introduced on these coins in 1908 was new at the time, and not well received by the public.
Today however, the incuse design of the quarter eagles is popular with numismatists who view it as an essential part of the renaissance in American coin design that occurred in the early 20th century. That same incuse design is one of the primary reasons the quarter eagle is so commonly discovered as a counterfeit.
Incuse design fields are more difficult to authenticate, and not all coin dealers turn to the likes of the Numismatic Guaranty Corporation or Professional Coin Grading Service for assistance. In fact, the PCGS noted that US gold quarter eagles coins have “the largest ratio of design element-to-field, making it more difficult for proper authentication.” With more design elements, there is more room on the coin to hide depressions or tooling marks.
Some of the reasons behind the counterfeiting of these specific years have to do with mintage levels. The 1914 quarter eagle is commonly counterfeited because it had the second-lowest mintage in the program’s history (1908-1929). The 1912 had a larger mintage, but the NGC notes that it is rarer in higher grades.
The trickiest coin in this group is the 1911 quarter eagle. The US Mint struck 1911 quarter eagle coins at both the Philadelphia Mint and Denver Mint, but the Philadelphia coins had no mint mark, while the Denver coins had the “D” mint mark. A 1911-D is extremely rare, but the 1911 Philadelphia coins had the largest mintage in program history. This made it an attractive proposition to machine a “D” onto a Philadelphia coin to pass it off as one of the rarest coins in the US gold quarter eagle program.
Other Motivating Factors
The rarity and accessibility of certain coins wasn’t the sole reason for the higher number of counterfeit coins in these particular programs. US gold quarter eagle coins were small coins compared to modern bullion and proof products, which means that counterfeiters don’t need a lot of gold to make fake copies of these coins. As such, counterfeiters can then turn around and sell fake coins with a lower premium over the spot price of gold to buyers who are more eager to own a historic US gold coin than they are diligent enough to spot the well-crafted counterfeits.
Value of Shopping with JM Bullion
When you shop with an authorized dealer such as JM Bullion, working closely with the Numismatic Guaranty Corporation and Professional Coin Grading Service, you can nab some of the most historically significant US gold coins of all time without worrying about the authenticity of your piece. JM Bullion carries a wide selection of pre-1933 US Gold Coins, as well as verified Mercury Dimes.