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Oo this is relevant to my world (professional coin & currency dealer here)! A scourge, but relevant. To address a few different things people have said in sib
by nlh 4y ago
Oo this is relevant to my world (professional coin & currency dealer here)!
A scourge, but relevant. To address a few different things people have said in sibling comments:
* Theft/security at coin shows is actually a real issue. I know the instinct may be to laugh when they say "Tungsten gold plated bar is the best choice if you are a gold dealer and attend some trade fair or put your gold products in the showcase..." but that almost kinnnnnnnda makes sense. But only kinda. The security issue these days isn't so much about the physical bars being stolen as it is being followed AFTER the show and someone just does an old fashioned smash-and-grab through a window of your car. The advice lately is DO NOT STOP after leaving a show, make sure you're not being followed, etc. Insane but reality.
* Counterfeiting is, unfortunately, also a real issue, and companies like this don't help. The gold standard (ha ha ha) for detection right now is an XRF gun, but the problem is twofold: One, those guns cost $15,000-$20,000, and two, people trust them, so when a good fake can pass an XRF test, the chances are it's going to defraud someone.
* Someone else asked about why people want gold/silver bars/coins. The die-hards (who are remarkably similar to crypto die-hards) will say some familiar stuff -- fiat is worthless, when it all goes to hell you'll still have "real money", they don't trust banks, etc. The more common thinking is just asset diversification/investment. You may not understand a T-Bill or Muni Bond or GOOG cashflow statement, but it's pretty easy to make a bet on gold/silver and buy a few actual pieces of gold silver.
The coins come in several flavors -- there's the modern stuff (American Eagles/Buffalos, Canadian Maple Leafs, South African Kruggerands, etc.) which is valued because, ironically, it's backed and produced by a government so considered to be more real/trustworthy. There's also what's known as "constitutional" silver (actual US coins from pre-1964, which are made of 90% silver) and "pre-33" gold, which are actual US coins from pre-1933, which are made of 90% gold. For similar reasons, they are valued because they WERE money, with known purity etc.
Fun stuff -- feel free to ping me if anyone wants more info!
- cowthulhu 4y agoThat is super interesting. I assume it’s easy to spoof the density? And this is probably a stupid question, but do people ever try to alloy the gold to mix in an impurity in a subtle way?