The world is currently experiencing a gold boom: gold is being bought and sold in unprecedented quantities, and, accordingly, prices are at record highs.
At the same time, cases of fraud are on the rise: experts are warning en masse about an increase in the number of counterfeit gold bars and branded jewelry on the market.
At the end of last year, a network engaged in the illegal production and sale of gold jewelry was uncovered in Moldova. During searches in Orhei and Chisinau, a large amount of both raw materials and gold items with counterfeit markings of famous brands were seized. The suspects had been supplying the gold to retail stores across the country.
Police officers confiscated approximately 4 kg of gold that lacked proper documentation and featured counterfeit engravings of well-known brands. Authorities reported that the suspected criminal group acquired precious metals and gemstones illegally, using them to produce gold items for sale while counterfeiting the trademarks and designs of reputable companies. During the searches, police also discovered equipment used for processing gold items and illegally applying the state certification mark, a designation that can only be issued by the State Chamber for Supervision of Trademarks.
The situation in EU countries is equally concerning. In December, reports emerged about a rise in counterfeit items on the Estonian jewelry market. Experts attribute this trend to the proportional growth of the market and rising precious metal prices. Hans Saarvelt, PR manager for the Luutar pawnshop chain, revealed that in October 2024 alone, the chain’s offices received nearly five kilograms of gold jewelry—four times more than during the same period the previous year. Meanwhile, the purchase price of gold jewelry in Estonia has surged by 40% over the past year.
According to Saarvelt, another issue is that many private craftsmen lack the necessary licenses to stamp handmade jewelry. Fraudsters exploit this by falsely claiming that the absence of a hallmark is due to this licensing gap, when in reality, they are selling counterfeit alloys.
Despite the socio-political tensions, Ukraine’s precious metals market faces a similar issue. Experts report a new surge of counterfeit gold bars entering the market, including those sold by banks and other official financial institutions. Specialists point out that the problem of tungsten being used in counterfeit gold has persisted for four years. Because tungsten’s density is nearly identical to that of gold, distinguishing the two through standard weighing or the Archimedes test is nearly impossible.
Jewelers analyzing the situation remind consumers that a simple way to distinguish gold from other materials at home is by using a magnet. Genuine gold is not magnetic—if a chain or ring is attracted to a magnet, it’s not real. Even a smartwatch strap with a magnetic clasp can be used for this quick and easy test.
