Posted on 12/07/2013 9:10:46 AM PST by Kaslin
How many times have parents said to their children, “Because I said so.” Contemporary parenting dictates rationalizing with your child, giving them explanations for everything, and of course being a buddy. But even the most modern of parenting techniques will undoubtedly run into roadblocks, ultimately leading a frustrated parent to utter that infamous justification, “Because I said so.”
And speaking of notorious rationalizations, as the world loses confidence in fiat currency (paper money), and the “inflationistas” of the world continue to pound the drum in favor of alternative currencies (specifically precious metals), more and more typical investment portfolios will experience an increase in both gold and silver positions.
There are basically two ways to purchases precious metals, either via paper (ETFs, mutual funds, and UITs) or through the acquisition of kilobars and coins. And more specifically as it relates to gold, as it becomes increasingly apparent that paper gold doesn’t satisfy the actual ability to be utilized as a currency, and as questions arise pertaining to the concern of bona fide gold actually backing up the ETFs, mutual funds, and UITs, more and more investors will purchase the actual hard metal. And therein lies the rub.
How many times have you given a $50 or $100 bill to a cashier who either marks the bill or holds it up to the light in order to verify its authenticity? However, when you purchase a gold coin for well over $1,000, can you perform the same test of legitimacy? In fact, can anyone perform a test in order to make sure that what you’re buying is actually real? The answer is yes and no.
With gold coins purchased directly from a mint, and not previously owned, you can almost be 100% sure that the coins are genuine. On the other hand, gold coins that have been purchased through dealers, or coins that were previously owned by someone else, definitely run the risk of being tampered with beforehand. The standard test administered by the mints of the world (and yes, they are very concerned) is to verify the coin’s density. Yet, I’m sorry to say that tungsten has the same density as gold, thus making the existence of tungsten virtually undetectable. Short of melting, cutting, or destroying the kilobar or coin, current tests cannot accurately and consistently differentiate gold from tungsten.
International counterfeiters are fully aware of this fact, and over the past few years, they’ve been ramping up their efforts in order to flood the markets with counterfeit pieces. The top gold depositories, from London to Ottawa and from Pretoria to New York, are fully aware of this critical problem that’s about to engulf the whole world.
Thus, if you own gold, my recommendation is to contact your dealer immediately and inquire how they know for sure that what they sold you is actually real. If they answer, “Because I said so,” then you should be very concerned, extremely worried, and then incredibly afraid.
After all, the mints of the world are absolutely terrified and you should feel likewise.
Although gold and tungsten have similar densities the resistance to an electric current are different enough to be measured reliably and accurately.
But gold plated tungsten would have the conductivity of gold as long as it has sufficient thickness.
Bullion silver, including certain coins, is.
Most coins minted for circulation are much less.
But then most coins minted for circulation — especially those which are well worn — are not likely to be fakes.
Any half competent freshman chemistry student could measure density and tell the difference between gold and tungsten.
http://www.businessinsider.com/china-tungsten-gold-2012-9
“But gold plated tungsten would have the conductivity of gold as long as it has sufficient thickness.”
This is not true...
“But gold plated tungsten would have the conductivity of gold as long as it has sufficient thickness.”
This is not true...
bg, I'm surprised. Will you please elaborate?
“Any half competent freshman chemistry student could measure density and tell the difference between gold and tungsten.”
You think? I believe that is false...
Tungsten is 0.36% less dense than gold. If a piece was made up of 1/2 each, the difference between that and a pure gold piece would be 0.18% in density.
Just curious: are you suggesting that one could measure the volume and weight and detect the difference?
Provident Metals and Apmex are very reputable dealers. Sealed monster boxes are the way to go.
“bg, I’m surprised. Will you please elaborate?”
When current flows through a material, with direct current it flows through the entire material. So if you had a plated coin, the outside material would have a resistivity and the inside would have a different resistivity.
ie; resistors in parallel. The equation is R total = R1 (times) R2, (divided by) R1 plus R2
You think? I believe that is false...
You're most like correct, babygene. Density = mass / volume. Here are typical density values.
Gold = 19.32 g/mL
Tungsten = 19.35 g/mL
So a gold-coated tungsten bar would have a density a bit below 19.35. Perhaps it would be 19.34.
A chemist just might catch that if he had a VERY precise massing device and a VERY precise volume device. Typical high school lab devices would not catch that small a difference.
And to make it even more confusing, not all scientists will agree on those given densities! There are fluctuations due to temperature, etc. Bottom line, forget density as a test here.
This has been addressed in the past. Here is an article about fake gold and how it is detected:
http://www.perthmintbullion.com/us/blog/blog/12-03-26/Fake_Bars_-_The_Facts.aspx
Understood.
I didn’t think of parallel resistors because of the “envelope” configuration.
Thank you very much!
Gold is and has always been a store of value. Not the greatest currency.
Boxes of 7.56, 12 ga and/or 45 ACP will be better “currency” in a SHTF scenario. Even 223 will be a great barter tool.
Any daily-use item will do. Razors, tampons toothpaste, coffee, chocolate, canned meat etc . . . Just look at post WWII Europe. People taking the train with silver and gold tableware into the country to trade for food.
Look into the trading value of cooking oil in any currency challenged economy. When you need to eat and protect your family, gold bars are the last thing you need to worry about.
2 gold coins or an AR15; which will keep you safer?
“Isn’t silver stamped 99.5?”
Some is .999 or .9999 (I believe Canada’s 1 oz. coin is “four nines fine”).
Mine's real.
I do think. That’s why I said it.
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