Major UK Dealer Finds 16 Fake Gold Sovereigns in Order from US Bullion Company

Major UK Dealer Finds 16 Fake Gold Sovereigns in Order from US Bullion Company

Even professionals buying from other professionals aren't immune to counterfeits.

In a post that sent shockwaves through the precious metals community, Lawrence Chard of Chards — one of the UK's most respected bullion dealers — revealed that out of 1,000 gold sovereigns purchased from a major US bullion dealer, 16 were fake and 4 more were suspicious.

That's a 2% counterfeit rate in a wholesale, dealer-to-dealer transaction.

The Obvious Giveaway

The fakes Chard shared were dated "1919-L" — indicating they were supposedly minted at the London Royal Mint in 1919.

There's just one problem: The London Mint didn't produce any sovereigns in 1919.

After World War I, sovereign production at London ceased from 1918 to 1924. The branch mints in Australia (Melbourne, Perth, Sydney) and Canada (Ottawa) continued production during this period, but London did not resume striking sovereigns until 1925.

For anyone with basic knowledge of sovereign history, this is an instant red flag. As one forum member put it: "There were no 1919 London sovereigns? 😂"

Yet these fakes made it through a major US dealer's quality control and into a wholesale order.

What This Means for Collectors

If fakes can slip past professional dealers buying in bulk, individual collectors face even greater risk. Here's what to take away:

1. Even "reputable" sources aren't foolproof

This wasn't a random eBay seller or a pawn shop deal. This was a dealer-to-dealer wholesale transaction between established businesses. The US dealer presumably acquired these coins from various sources over time, and the fakes slipped through.

2. Visual inspection has limits

Chard noted that some of the fakes would be obvious to anyone familiar with sovereigns — the impossible date being the clearest tell. But others required closer examination. In a batch of 1,000 coins, how thoroughly can each one be checked?

3. Know your dates

Sovereign collectors should familiarize themselves with which years and mint marks actually exist. Key gaps include:

  • London (no mint mark): No production 1918-1924
  • Melbourne (M): Ended 1931
  • Sydney (S): Ended 1926
  • Perth (P): Ended 1931
  • Ottawa (C): Ended 1919

Any sovereign claiming to be from a mint/year combination that doesn't exist is automatically fake.

4. Multiple verification methods matter

Visual inspection caught these fakes because of the impossible date. But what about well-made fakes with correct dates? That's where additional testing becomes essential:

  • Weight and dimensions: Fakes often have slight variations
  • Acoustic testing: The "ping test" reveals internal composition
  • Magnet test: Gold isn't magnetic; some fakes contain ferrous metals
  • Specific gravity: Measures density to confirm gold content

The Bigger Picture

Chards is currently checking another batch of 1,000 sovereigns from a European dealer. The fact that one of the UK's most experienced dealers needs to manually verify wholesale lots tells you everything about the current state of the market.

With gold prices at historic highs, the incentive to produce fakes has never been greater. The profit margin on a single fake sovereign is substantial enough to fund sophisticated counterfeiting operations.

Protect Yourself

Whether you're buying one sovereign or one thousand, verification matters. The "trust" model that worked for decades in the precious metals industry is showing cracks.

Don't rely on reputation alone. Verify every coin.

Pingcoin uses acoustic analysis to verify precious metal coins. Our app analyzes the resonance frequencies of a coin to confirm it matches the expected signature for genuine specimens. Learn more about how it works →

Source: The Silver Forum — Posted by LawrenceChard (Chards), March 9, 2026

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