Jewelers Hit by Gold Scams

By Rob Bates, Senior Editor

Posted on December 14, 2009

With more jewelers buying gold from the public, gold-related crimes are increasing, says John Kennedy, of Jewelers' Security Alliance.

Kennedy's group has received over 28 reports of gold-related frauds committed against retail jewelers in 2009, compared with six last year.

"Every time you buy off the street you have to be on your guard," Kennedy says. "With so many people buying gold, there is widespread opportunity for fraud."

Laurence Hyman, president of Chicago Jewelers Association, which runs a crime alert network, says he hears about new scams "a couple of times a week. There have been tons of these scams going on," he says.

JSA has documented two main kinds of gold fraud:

The seller shows the jeweler a real gold item, but switches it for a nongold look-alike.
A jeweler buys a piece that tests positive as gold but turns out to have been heavily plated.

Hyman has heard reports of hoop earrings with gold posts and stainless-steel hoops and counterfeit and underweight "gold" coins with real gold content. He's also heard of a substance that looks like white gold and tests as 18k, but isn't. "It's some sort of new alloy, I gather," he says.

Comments

by Frank Duerr - 2009-12-15 10:21

if something looks like 18k white gold and tests to be so it should disappear if You use 22k testing acid. if not it's most likely stainless steel

by Marc Cohen - 2009-12-16 09:13

Have all Gold Buying done in an area of your store where surveillance cameras are in place. This will allow you to make certain all gold buying proceedures are being adhered to. In the event of a fraudulent sale,you will have eveidence to submit to authorities and you will have the photos available for circulation to help capture these con artists. Close up views which identify the items will tie the transaction with the seller.

by Simon L Marcus - 2010-01-10 14:32

When buying gold it's not enough if the chain is stamped 10k 14k 18k. It must also be stamped with a trademark. Alway's best to deal with a reputable supplier and not buy of the street.