By Steve Roach COIN VALUES Market Analyst

Coin World has taken an active role in disseminating information about the recent infiltration of fake coins that are coming into the United States from production facilities in China.

The good news? The hobby’s awareness of this problem is increasing and dealers are becoming more aware of what is out there.

The bad news? The counterfeit coins keep getting better and the counterfeiters are becoming more innovative in their handiwork.

At the recently concluded Whitman Coin & Collectibles Philadelphia Expo, a new and very deceptive counterfeit was purchased by a wholesale dealer and shown to dealers as a cautionary lesson. The rumor was that its origin was China, but regardless of its source, it is extremely deceptive.

The “coin” was sold as a 1903-S Morgan dollar, in a fake Professional Coin Grading Service Mint State 65 holder. Coin World’s Coin Values lists the value of a genuine coin at $13,000.

The consensus among dealers who saw the piece was that it seemed to be a composite of two genuine coins. The obverse is of a 1903 Morgan dollar, likely from the Philadelphia Mint as indicated by its striking characteristics and luster. The reverse is from a genuine San Francisco Mint issue, perhaps from 1878 to 1882 as suggested by its blazing luster.

The two genuine coins were halved, joined and put in a fake PCGS holder with a fake PCGS insert. The “coin’s” encapsulation in a fake PCGS holder allows the edge, which would show evidence of the joining, to be hidden.

Apparently, the coin itself did not first raise suspicion, but rather, that the slab would not scan properly. Certified coins have a bar code on the insert bearing identifying information that dealers can use to scan a coin into inventory. That this insert would not scan raised a red flag.

Fake United States coins abound on eBay and other Internet auction platforms, but some detective work including looking at the seller’s information can typically reveal its Chinese origins.

But, an increasing number of dealers are reporting that they are encountering fakes at the more expensive levels, and not just on the Internet.