Search Here

China is grappling with a rise in gold scams amid strong interest in the precious metal as an alternative investment.

In a statement, the Chinese government said thousands of consumers had been scammed into purchasing "fake gold" or inferior or artificial gold after buying what was advertised as "999 gold" online.

5,000 Complaints on Fake Gold in China

On a well-known grievance platform, more than 5,000 complaints about "fake gold" or suspected counterfeit or misrepresented gold products were recorded. According to the government, gold has always been a good investment, but some unscrupulous businesses now use it to deceive consumers.

Some sellers on e-commerce platforms reportedly pass off substandard gold as "999 pure gold," leaving buyers to discover the deception after delivery. The "999 gold," also known as 24-carat gold, is the purest form of gold as it has a gold content of 99.9%.

'Anti-Counterfeiting Certificates' For Gold

According to the government, Chinese buyers encounter significant challenges when addressing issues with their purchases because sellers provide a complete set of misleading "anti-counterfeiting certificates."

After consumers discover that gold is fake, these so-called "certificates" become a "shield" for sellers to evade accountability. Thus, regulatory authorities are urged to increase oversight of gold products sold on e-commerce platforms to ensure authenticity and quality.

In the statement, the government said that "consumers themselves should also be more vigilant and enhance their ability to identify. When purchasing gold products, they should choose formal channels."

"For products with unusually low prices, do not believe in so-called subsidies and profit concessions to avoid being deceived," it added.

According to CNBC, the spot price for gold is currently trading at $2,302.76 per ounce. After rallying to record highs in recent months, the price started to drop last week.

Tags

China