E-commerce platform Carousell said searches for gold items rose 17 per cent year-on-year in February. 

Mr Kwek Seow Bin, owner of Singapore-based startup Metal & Picks, who runs a Telegram channel for private buyers, said social media platforms are gaining popularity due to limited stock at physical stores. 

“When supply is tight, (dealers like us) don’t have enough ready stocks to meet consumers’ demands,” he told CNA. 

“When people purchase physical gold, they want to get their stock immediately. So, if they can't get it (from bullion stores), they will try secondary markets.” 

Dealers say many counterfeit items are entering the market through these channels, often originating from overseas. 

ALL THAT GLITTERS IS NOT GOLD

Industry players note that while some pieces may look authentic, appearances can be deceiving. 

Despite bearing hallmarks of genuine gold – including certificates and serial numbers – some items are in fact made of copper or nickel. 

Featured on Channel NewsAsia (CNA)

Gold Price Singapore was featured on Channel NewsAsia discussing the rise of fake gold cases in Singapore.

Watch our Channel NewsAsia feature video below to learn how to avoid fake gold and safely sell gold in Singapore.

Such fakes are becoming increasingly difficult to detect, especially for lay buyers. Online, it is often even harder to tell the difference. 

Counterfeit goods range from crude fakes – such as bars that feel too light or flimsy, or those with identical serial numbers – to high-quality replicas. 

Mr Brian Lan Zhongping, managing director of GoldSilver Central, said not all online sellers are upfront about the authenticity of their products. Some even use packaging and marketing material resembling those of well-known jewellers. 

“They price it slightly below the (market) price so many people think this might be a good deal. It comes with a box and even with a certificate. And because (customers) think it’s the reputable jeweller, they will buy it,” he said. 

“Even some wholesalers who are new to this trade were duped.” 

A analyzer is used to measure the chemical composition of a gold bar, which has a 93.82 per cent purity, in a shop.

FOOL’S GOLD 

Another dealer, Mr Billy Chiam, said the gold rush has led to as much as a 40 per cent increase in fake items being brought into his store for resale. 

He said these often arrive in bulk, and may include so-called “sand gold” designed to mimic the look and weight of genuine gold. He believes some customers could be attempting to slip in counterfeits among real gold.  

Mr Chiam noted that even testing machines may not immediately detect such fakes, especially when materials like tungsten – which has a density similar to gold – are used. 

"It could have a thick layer of gold on top of it, then some other material can hide inside. So, you have to cut it and test the core to ensure that the content is really gold,” said the founder and director of Gold Price Singapore. 

BUYERS BEWARE 

Dealers warn that private buyers remain especially vulnerable, as they often lack the equipment needed to verify authenticity. They say one of the biggest red flags is a price that seems too good to be true. 

“Gold is very expensive and very easy to sell. So, it becomes very attractive for scammers,” said Mr Kwek. 

“If you are new to precious metal, try to go to trusted, reputable dealers who have the right machineries and (proper) authentication … so you know you are buying a real pure gold bar, and not a fake one.” 

Industry players expect such cases to rise further if gold prices continue climbing, and are urging buyers to remain vigilant and stick to reputable sources.

Read more:
https://www.channelnewsasia.com/singapore/gold-rush-demand-fake-counterfeit-scam-6012756

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Gold shines despite uncertainty over price

BY WONG WEI HAN

Published July 29, 2013
Updated July 29, 2013

SINGAPORE — With gold prices continuing to weaken, retail demand for the precious metal is picking up in Singapore as buyers chase an investment which has become more affordable of late.And the increasing number of buying channels for gold is acting as a further stimulus for demand.

For UOB, which launched gold or silver savings accounts five years ago, growth in demand has become especially visible in the past six months since it began offering online access to the service.

“We have seen strong gold demand from our retail customers since the gold price dropped below US$1,500 (S$1,896) per ounce in April. Since then, we have seen an increase in transactions of 40 per cent on average,” said Ms Beh Hsia Wa, Director of UOB Bullion and Futures.

The number of gold savings accounts at the bank has also jumped by 22 per cent in the past half year, partially because young customers are more enthusiastic about gaining exposure to gold through digital means rather than buying a physical product.

“We are … seeing an increasing number of younger people showing interest in gold and silver products,” Ms Beh added. “Generally, they tend to prefer to trade online, with 11 per cent of all online transactions performed by customers aged 20 to 29.”

The growth in retail demand experienced by UOB is part of the larger development in the local bullion market since gold prices have fallen by close to 40 per cent from the peak in 2011. This has lowered the threshold for more retail and first-time investors, said Mr Billy Chiam, Director of precious metal dealer Gold Price Singapore.

“Despite the current price volatility, gold is still a safe haven investment given its limited supply. Retail demand in the market has been growing particularly strongly since the government lifted the Goods and Services Tax on bullion import and purchase in October last year, and I expect it to further pick up ahead of market improvements,” Mr Chiam said.

Gold Price Singapore, which was established in 2011 to deal in physical gold, now serves at least 2,000 customers. But it is competing for growing demand in a market where retail investors have more choices to buy and trade gold.

Earlier this month, the Singapore Precious Metals Exchange launched the world’s first online exchange platform where members can buy, sell and store precious metals for as little as US$1,000. It currently has over 10,000 customers.

But while more people are buying gold through an increasing number of sales channels, some manner of caution is still necessary as it is unclear whether prices are set to spiral further, said OCBC analyst Barnabas Gan.

Gold has sunk to around US$1,300 per ounce of late, he noted, with prices reversing from the bullion’s 12-year rally due to better risk sentiment, improving United States economic indicators and the realisation that the US quantitative easing will eventually come to an end, Mr Gan said.

“The silver lining, thus, is the hope that the tapering would start and end in 2014 for the market to fully digest its effects, allowing gold to finally behave its traditional role of a wealth protection instrument,” he added.

“Till that day comes, we look for gold to remain soft and advise caution for speculative investments.”

Read more:
https://www.todayonline.com/business/gold-shines-despite-uncertainty-over-price