In Gold we trust?
What happens if the Gold turns out to be fake?
That is exactly what has happened to some goldsmiths in Hong Kong, people that you expect would be able to detect gold fakes.
Jewellers and pawn shops in Hong Kong have discovered at least 200 ounces of fake bullion so far this year. The value of the fakes is worth about US$280,000.
It is estimated that ten times that amount could have gone into the retail market.
In the past, fake gold can be manufactured using gold-plated tungsten, a material that has a similar density to gold. Experienced jewelers would be able to detect such fakes.
Apparently, this batch of fake gold that was sold in Hong Kong involved a complex alloy that had similar properties to gold. It consisted of a significant amount of gold combined with osmium, iridium, ruthenium, copper, nickel, iron and rhodium. Detecting such fakes require more sophisticated tests.
Is your gold real?