When is Gold not Gold? When it’s Tungsten!
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It’s nigh on impossible to buy fake gold these days. It’s easier than ever to search for hallmarks, what the stamps and markings all mean and if you’re getting a fair price for your gold, buying or selling. Right?
It’s practically impossible to buy fake Gold bars or coins any more. That’s a well known fact and it’s this confidence and trust that forms the basis for the entire Gold industry. There are multiple certificates of authenticity and an upgrade to modern security features — such as the holograms now placed on kinebars. This was certainly believed to be true until 2010 when rumours began to circulate that a 500g bar (which appeared for sale on the open market) had been drilled out and filled with Tungsten. The ‘salted’ bar, as they’re known in the trade, had some of the Gold contents removed and near worthless Tungsten rods inserted. Because Tungsten is almost identical to the atomic weight of gold, it’s the most commonly used counterfeiting material.
In March 2012, another alert was raised after this photo (above) began doing the rounds on the internet. It was apparently flagged up as, when weighed, it came in at 2 grams underweight. A quick slice down the middle and…voila! Both this and the 2010 case were eventually debunked as false and “unsubstantiated rumours” by the Australian Perth Mint but this didn’t stop the growing speculation that there were many, many more bars like this in existence. Counterfeit gold bars are certainly nothing new; there have been incalculable incidents throughout the years of fake gold or bullion being sold.
How Much Fake Gold is Out There?
There’s thought to be 3 generations of counterfeits currently in circulation. Much of the 1st generation (1960–2000) is still under lock and key in cold war safes, lost for decades after the fall of the Soviet Union. These rarely pass inspection when found. Tungsten cores are commonplace in these counterfeits, much like the more commonly known fakes when it comes to precious metals — lead-lined Silver coins. An inner core of Lead is covered with a coating of Silver, then stamped and shaped to pass rudimentary inspection or basic physical examination and weighing. In atomic weight terminology, Lead is to Silver as Tungsten is to Gold.
The 2nd generation (2000 -2015) heavily targeted Krugerrand, which accounted for 90% of the world’s gold-coin market in 1980. Tungsten-filled, copper coloured, trash flooded the market as fraudsters looked to cash in. They began to use advanced alloys to help avoid both machine and physical detection methods. Some of the older knock-offs rapidly became more easily identifiable as fakes as technology advanced to combat the problem and general public awareness (and a good deal of wariness) improved.
The 3rd (2015 — present) generation of counterfeiters have definitely upped their game. They know how to use technology to their advantage for higher quality production, they’ll no longer just use gold. We’re seeing advanced Gold alloys as an outside material to help avoid detection; it’s very possible to replicate the packaging and security features so perfectly that the fake end product has a near identical look and feel to a genuine one. The naked eye can no longer accurately judge whether or not these are counterfeits such is the level of quality. It takes skill and machinery to produce 3rd generation fakes. That investment in craftsmanship and finish is for a reason.
The financial incentive for making fake gold is enormous. If you believe that you have bought your gold from a reputable dealer and you’re certain that yours is real, consider that for all the fakes that are discovered there will be others that slip through the net. These fakes make their way into the markets, passing through the hands of the unwary. Remember at the start when I mentioned how this market relies heavily on trust?
There MUST be a Huge Conspiracy About all This…
The ‘theorists’ would have you believe that the world’s Gold has been tainted by filling all the gold ingots and bars with Tungsten. The majority of the world’s Gold is now hidden in private vaults, scattered around the world, guarded day and night where it ‘allegedly’ props up central banks’ balance sheets and that of a few wealthy individuals. Nation states no longer have access to their Gold reserves, stored underneath the Federal Reserve in New York. No audits are ever carried out, nobody can check to see what’s there without prior arrangement and it’s all a giant game of smoke and mirrors as we wait for economic collapse and the downfall of humanity. They often seem like they’d be good fun at parties too.
This all sounds terrifying! How can you trust what you’re buying?
In the same ways as many of us have bought knockoff goods in the past, from designer handbags to DVD’s, you need to be aware of the potential pitfalls. This time though, it’s not a cheap clasp that won’t close or a dodgy picture on your TV that is going to affect you. As we’ve already seen, all that glitters is most definitely not Gold. This is an investment in your future. You could and should be able to put your faith in a reputable Gold dealer. If something feels ‘off’ then shop around.
A Final Piece of Advice that’s Worth MORE Than it’s Weight in Gold
Buying Gold or Silver has always been considered a ‘high road’ to financial safety. In times of economic trouble, people have looked to precious metals as a store of value. If you’re looking at buying some to invest, there’s a couple of “do’s” that you should undertake. Do some research for yourself and then find a reputable dealer who has the necessary equipment to be able to test what they’re selling you. They will screen what comes in to them and therefore, what goes out to their customers. There’s a variety of testing methods that are used including Ultrasound, conductivity testing, magnetic scales or the good old Nitric acid test. Verify, don’t always trust.
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