Sunday, September 5, 2010

Fake Peace Dollars - Methods for detecting counterfeit Junk Silver

Here's another video for spotting fake junk silver from real ones. In short:
  • Does it display the Cartwheel Effect?
  • Does it weigh close to the intended weight?
  • What do calipers reveal about its authenticity?
  • Use a real coin to test a fake one.
See video below for me details:

How to tell a fake Morgan Dollar "Junk Silver" with the "Cartwheel Effect"

Ebay is a great place to buy Morgan Dollars. But how do you know if what you bought is the real deal or not? One way to check is to look out for the 'Cartwheel Effect' as highlighted in the video below:

What is the cartwheel effect?
The cartwheel effect is a term that describes the rotating, windmill like effect of light that mint state coins exhibit. The cartwheel effect is best known for appearing on Morgan Dollars, due to a fortuitous confluence of coin design, planchet size, and die preparation methods, although the effect can be seen on nearly any mint state coin. The cartwheel effect is caused by flow lines that occur during the coin striking process, and the effect is somewhat fragile, disappearing as a result of circulation or the coin being cleaned.

Friday, September 3, 2010

Silver at a 2 year high

Here is some news tidbits about silver:
SAN FRANCISCO (MarketWatch) -- Silver on Friday settled at its highest price since March 2008, and gold futures came off their two-month high, posting losses as a drop in U.S. payrolls didn't turn out as steep as forecast and thus reduced demand for the precious metal as an investment safe haven.

Silver overcame a weak start of the session to close in on $20 an ounce. Silver drew strength from both from the mild safe-haven buying present on Friday and from its industrial appeal.
Gold for December delivery lost $2.30, or 0.2%, to $1,251.10 an ounce on the Comex division of the New York Mercantile Exchange. The metal pared some of its losses as the session progressed, and notched gains of 1% on the week. That's gold's fifth consecutive weekly gain.
December silver added 28 cents, or 1.4%, to $19.95 an ounce. Silver has gained 3.8% this week. That's the highest close for a most-active silver contract since March 17, 2008, when silver closed at $20.22 an ounce.

On the week, silver soared 4.8%. That follows gains of nearly 6% the week before.
Silver is a "hybrid" metal, appealing as a cheaper safe-haven alternative to gold. As a jobs report wasn't as dark as investors feared, silver also drew attention as an industrial metal on hopes the economic recovery remains on track.

Silver buying was "coming from both sides," said Darin Newsom, a commodities analyst with DTN Telvent in Omaha. The run-up may have more legs, he added. "Certainly it seems like (silver) is gaining momentum.

Red text above is mine. Here we can see Silver having a two-fold strength - as a cheaper alternative to the metal gold and also as an industrial metal. Could it be a good time to sell off some junk silver reserves? Stay tuned....