Surging gold prices trigger counterfeit boom in Thailand
Police have issued a stark warning about a surge in counterfeit gold following a significant increase in its price. The warning comes after a prominent store suffered a loss of over 8 million baht (US$ 224,000) due to the undetectable blending of gold with other metals using sophisticated techniques.
The Royal Thai Police’s Central Forensic Science Division, in a joint statement with the National Research Institute of Gem and Jewellery (a public organisation), highlighted the emerging threat posed by this new form of gold counterfeiting.
The scam came to light when a well-known Bangkok gold shop purchased approximately 2 kilograms of what appeared to be gold bars. The initial tests conducted by the shop, using standard gold verification methods, indicated that the bars met the expected 96.5% gold purity.
Confident in their assessment, the shop paid about 4 million baht (US$112,000) for the purchase. However, when the supposed gold was later processed, it was found to be brittle and not up to the gold standard, indicating a lower purity level than initially assessed.
A further forensic investigation by the police identified the metals used to adulterate the gold as rhenium and tungsten. These metals cannot be detected through basic testing methods such as acid drops, heating, or small-scale X-ray equipment.
Advanced scientific instruments are required for accurate identification. The situation is made more concerning by the fact that such sophisticated equipment, such as the X-ray fluorescence (XRF) machine, is not commonly owned by small retailers due to its high cost. Even among those who possess an XRF, settings must be specifically adjusted to detect rhenium and tungsten to differentiate between real and counterfeit gold.
Counterfeiting strategies
In light of these sophisticated counterfeiting strategies, retailers with the necessary equipment are advised to recalibrate their machines. For those without access to such technology, the National Research Institute of Gems and Jewellery offers high-level operational machinery to test for fake gold, albeit with associated costs. Once testing is complete, a certificate from the institute, which is recognised internationally, will be provided, reported KhaoSod.
The Police Forensic Science Office can conduct gold examinations for private entities only when the case involves criminal or civil court-ordered investigations. The public is also cautioned, especially as gold prices exceed 35,000 baht (US$980) per baht-weight, to purchase gold from reputable shops to avoid falling victim to counterfeit products.
The current trend involves mixing gold with tungsten powder, which has a similar weight but a significantly lower value.
