How to Spot Fake Gold?

How to avoid fake gold
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Gold is an ancient instrument of preserving capital. Since the beginning of time, people have accumulated gold to pass it on to future generations and were not afraid that its value would fall. Unlike coins and paper money, gold has been able to stand the test of time and save not only capital but also nerves by its owners.

Gold, unlike money, always has a predictable rarity. Money, on the other hand, has an enviable regularity of getting out of control, thanks to the increased supply of cash by politicians. This is the reason why investors in all cases prioritize gold, relying on its time-tested reliability. Still, the main and most important role of gold is that it’s a substitute for money when the money supply can no longer be controlled.

Besides gold is a very convenient way of investing, because of relatively low storage costs and high liquidity. Also, the limited use of gold in the industry allows you to use this precious metal as a tool to protect against the global recession.

That is why gold will never lose its value.

However, buying gold comes with a certain danger of stumbling upon a fake instead of a quality bar. As the popularity of gold has increased, so has the number of ways to counterfeit precious metal for easy money lovers.

gold bar

Why is gold counterfeiting so common?

Gold counterfeiting is an extremely lucrative business.

It’s small in size and has a high value per unit volume. For this reason, gold is very easy to smuggle, and it doesn’t require large facilities to produce counterfeits.

And the price of gold once again shows why it’s profitable to counterfeit it.

From private sellers to Chinese online stores, the video shows how widespread the problem of counterfeit gold is, and how often counterfeit gold can be bought today instead of a genuine product. Also, after watching this video, you might start to look closely at what is offered to you at the gas station.

However, the field of counterfeit gold sales is much broader than what the video says.

Scammers usually counterfeit bars of one kilogram or more. The thing is that small bars are stamped, numbered, and sealed, while larger bars are poured into a mold and easily drilled and filled with a cheaper and closer metal than gold in density and weight. Therefore, it becomes much more difficult to determine authenticity.

How can I tell fake gold from real gold?

Gold purchased for an investment asset can only be in the form of investment coins or bars. Jewelry is usually not considered an investment asset.

Bars are most often sold in certified packaging (certipack), with the result that they cannot be tested in the same number of ways as jewelry.

Nevertheless, there are several ways to distinguish the real thing from a fake.

fake gold

Check magnetism

As mentioned in the video, the easiest way is with a magnet.  Bring it to the gold, and if it’s magnetized, then you have a fake in front of you. Real gold will never be magnetic.

Check the weight

Gold is characterized by a very high density. A cube of gold with a side of 1 cm will weigh 19.3 grams. Therefore, if we know the size and weight of a pure gold coin or bar, we can determine the authenticity of gold. However, we need a very precise weighing scale.

When it comes to bars in certipack, the situation is a bit more complicated. It’s impossible to check the weight of the bar itself because it has to be weighed together with the packaging. Unfortunately, bar manufacturers don’t publish the weight of bars together with the packaging. Nevertheless, it is worth weighing and measuring such a bar to exclude fakes of lower quality (with wrong dimensions). Dimensions are publicly available on the manufacturers’ websites.

Check electricity conduct

The only metal that can masquerade as gold in the density check is tungsten. Nevertheless, it can be unmasked using the differences in electrical conductivity between these two metals. But this requires specially designed devices.

It can also be used to check ingots packed in a certipack.

Check sound

The sound method has been used for thousands of years. It uses the difference in resonant frequencies of coins. The sensitive ear can determine the authenticity of a coin by its sound.

Nowadays, modern technology comes to the rescue through the use of applications that check resonance frequencies. But, unfortunately, this method does not apply to certipack bullion.

How to avoid fakes?

The most important, and perhaps the only advice isn’t to buy gold privately or in dubious stores with an unverified reputation. Especially in those cases where they offer a below-market price. This, as stated in the video, is the main point to which you should pay attention.

The price of gold can in no way be lower than the price of its exchange rate. It is simply not profitable for the seller to sell it cheaper, he will incur a loss. Especially if it isn’t a certified store.

This can be confusing, but the high price of gold isn’t always a guarantee of an authentic product. On the contrary, swindlers often resort to such a ruse, not only to confuse the buyer but also to get a big profit.

This guarantee can only be given by an accredited jewelry company that has all quality certificates. Therefore, to avoid fraud and not lose a significant amount of money, it is always worth contacting large jewelry stores. Of course, the cost of gold in them will be more expensive, but the likelihood of buying a fake is practically reduced to zero.

gold rings

Remember, too, that you should not buy gold from private jewelry stores, markets or stalls. Most likely you will stumble upon a fake.

A small shop may disappear the next day and there will simply be nowhere to file a claim. But a store that has been operating for several years and values its reputation will do everything possible to make the customer satisfied and come back again and again.

We want to assure you that you can be completely sure of the security of the transaction and the purchase of genuine gold if you contact our store.

We are accredited jewelers and have all the required certificates and credentials.

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