News Header

 

Faux gold infests Hong Kong Streets

Release Date: 
Thursday, December 2, 2010

Faux gold infests Hong Kong Streets

Dec. 2, 2010

Goldsmiths, jewelers and pawnshops in Hong Kong have been victimized by fake gold permeating the streets of the Chinese territory as part of a sophisticated scam that has an amalgamation of alloys masquerading as the precious metal but very closely resembling it, the Financial Times reports.

One case had executives poring over a pure gold coating on top of osmium, iridium, ruthenium, copper, nickel, iron and rhodium, a complexity that suggests to some the fake precious metal was generated by a knowledgeable and equipped metalsmith. The Luk Fook Group, one of the territory's biggest jewelers was swindled into purchasing $11,500-worth of fake gold this summer.

"This was the biggest hit ever," Paul Law, the victimized group's executive director, told the Financial Times.

Though counterfeit gold was easier to spot in Hong Kong and elsewhere in Asia, the fake gold making the rounds has proven to be more challenging. Some fake gold consists of bullion.

The scam has primarily targeted jewelers purchasing scrap gold rather than the larger gold bar market, which has more rigorous controls.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guarĀ­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

News Footer

 

†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

You should review Goldine's Account Agreement along with our risk disclosure booklet, Coin Facts for Investors and Collectors to Consider ®, prior to making your purchase. Goldline has a spread or price difference between our selling price, called the "ask", and our buy-back price, called the "bid". That spread varies depending on coin or bar you acquire. Spreads on 1 oz bullion coins, 90% silver dimes and quarters, and one ounce and larger bullion bars are 13%. All other coins have a spread of 28%. There is also a 1% liquidation fee when you sell your coins back to Goldline. The market must go up enough to overcome this spread before an actual profit is achieved. Precious metals and rare coins can increase or decrease in value. Past performance does not guarantee future results. Coins are a long-term, three- to five-year, preferably five- to ten-year investment. We believe precious metals are suitable for 5% to 20% of the average investment portfolio though others may recommend a different percentage.

To receive free information package on gold and precious metals investing, call Goldline at 1-800-963-9798.