Despite the fact that the price of gold is breaking record after record, the amount of the precious metal held in Czech households is increasing. Gold is considered a safe investment – but this is only true if you buy the real thing.

In recent years, there has been an increase in the number of counterfeit gold bars found in the Czech Republic. This trend is linked to the increased demand for investment gold, which has been driven by rising inflation and economic uncertainty. "The reason for the increasing number of gold counterfeits on the market is simple: the growing demand on the market, combined with increasing volumes of gold sales. Whenever something becomes popular, scammers always try to profit from the trend unfairly. Be wary of suspiciously low prices. There are no special offers or discounts on precious metals. If someone is offering gold at a price that is below the market average, it's a warning sign that something is wrong," warned Roman Pilíšek, an economist and co-founder of the company Zlaté rezervy, which has been operating in the Czech market since 2010.

Although it is not a widespread problem, counterfeit gold bars do appear in the Czech Republic. Dealers encounter them several times a year. "For example, at the beginning of February this year, a middle-aged man came to us offering to sell a 100-gram gold bar of the Münze Österreich brand. The bar had the correct weight, and at first glance, it didn't look fake to the untrained eye. However, our devices immediately identified a difference in the metal. We advised the man to contact the Czech Police," Pilíšek described.

Gold is one of the 10 heaviest metals on the planet. Therefore, it is unusually heavy for its size. Counterfeits are typically lighter. "From a weight perspective, tungsten is the closest substitute for gold. Counterfeiting with other metals that have a similar weight to gold is economically unfeasible, because acquiring metals like uranium, plutonium, neptunium, or osmium is industrially, economically, or legally very complicated, practically impossible for an ordinary person, or highly risky. Common metals that are also used for counterfeiting gold are significantly lighter. A bar of real gold is very thin. A gold-plated bar made of a common metal of the same weight will likely be longer and taller than a real bar. It is important to weigh them very carefully, as the differences can be in tenths or hundredths of a gram. We recommend requesting verification of authenticity using specialized equipment that a professional dealer has available when making any purchase," said Pilíšek.

The place where you buy gold also significantly reduces the risk of buying a fake. "There are several steps you can take to avoid buying fake gold. You should always buy from a dealer who has been in the market for some time. Ideally, make your first purchase at their physical store. Check independent reviews. Every reputable dealer will be happy to explain the process of buying investment gold and silver and will always be willing and able to have those products tested using certified equipment that an experienced and professional dealer always has available. For example, we include a Certificate of Authenticity Measurement for each bar and coin – we measure each item individually. Never buy from public markets, parking lots, flea markets, or stock exchanges. When buying from online stores, check if the seller has contact information, terms and conditions, responds to communication, and has publicly available documents about their business," Pilíšek recommended.

"Be particularly wary of dubious online retailers or online marketplaces. 'We are seeing a significant number of counterfeit gold bars on Eastern European e-commerce sites. However, I wouldn't even call them forgeries; they are more like imitations, replicas, and mock-ups made from common metals, making them easily identifiable,' " explained Pilíšek. If you decide to purchase gold online, be cautious even when receiving the shipment. "Ideally, before accepting the package, carefully check the integrity of the packaging. Don't underestimate any suspicions; if you have doubts, don't accept the shipment and contact the supplier. If everything appears to be in order at first glance, we recommend unpacking the shipment in a suitable, safe location with plenty of light and documenting everything with your mobile phone. If you suspect a counterfeit, immediately contact the Czech Police and follow their instructions," said Pilíšek. There is no gold product on the market that has not been counterfeited at some point. Therefore, the decision between buying a whole gold bar or dividing your investment into smaller weights will not protect investors from scammers. "Professional counterfeiters are targeting both 250-gram gold bars, where a high profit can be expected, and the production of metal imitations in smaller weights. We have, for example, recorded discrepancies in the weight of a 10-gram bar, where the difference was 0.2 grams. The bar was not damaged, and this deviation existed from the moment it was manufactured – it was actually made of gold, but the declared weight was incorrect. However, such discrepancies are unlikely to be noticed by the average person, so the only certainty is to purchase from reputable and reliable sellers," Pilíšek concluded.

pearmedia/ gnews.cz - RoZ