Police officers in the cold Canadian city of Edmonton are warning potential gold buyers: ‘buyer beware’. Gold buyers, professionals, cash for gold stores, and gold investors, watch out: fake gold bullion is on the rise.
What did the police find?
One ounce gold plated copper bars were packaged and sold as the real deal. Compared to the over $1,550 spot price per ounce (at the time of writing), these bars have almost no value.
Unusually, this investigation did not begin with customers buying fake gold. To the contrary, ‘smart scammers’ sold fake gold bars to over-eager gold buyers. Nearly 10 troy ounces of fake gold bars have been found in various sizes in Edmonton alone.
This is neither a joke, nor an isolated incident. Websites ranging from eBay, to Craigslist and Kijiji, sell a range of “novelty” gold. These are technically crafted to fool anyone but a truly experienced gold buyer. Most of them are mass-manufactured in Asia. Gold.TO obtained some samples. We will be positing a guide on spotting fake bars, coins, and other products next month.
Spot Fake Gold Bars
We recommend young businesses carefully weigh all bars, and use displacement and acid tests. Anyone who can afford it should operate an XRF mass spectrometer. Outside of that, work with people who have integrity, knowledge, and experience. Remember, nobody reputable is going to sell or buy real gold bars far from spot price. If you’re paying less than half of spot price, e.g. $700 when gold is at $1,400, you’re probably buying fake gold bars.