Gold has been setting a new record price every few days and scammers are jumping on the bandwagon.
The price of gold has soared and scammers are taking notice. They’re flogging cheap products on online platforms and it’s prompted a warning from police and gold authorities.
Gold prospector Tyler Mahoney told Daily News that gold has been breaking its own record on price every few days this year. She said the skyrocketing price was due to geopolitical unrest across the globe.
“The first thing investors do during unrest is flock to gold because it’s such a safe haven investment,” she said.
“This pushes the gold price up, and it starts this kind of frenzy that we’re seeing at the moment.”
If you bought a troy ounce of gold this time last year, it would have set you back $3,590.
That same troy ounce now costs $5,216.
Scammers have jumped on the bandwagon by selling counterfeit coins and bars.
They’re hoping to dupe those looking to cash in on the investment trend and make some quick cash themselves.
The Perth Mint and WA Police have noticed online platforms like Facebook Marketplace and eBay have been flooded with these fake goods.
Many of these items are actually made of copper or zinc, but are gold-plated and have the Mint’s logo stamped on them.
Aussies have been told to only buy through reputable dealers like The Perth Mint if they want to be sure they’re getting the real deal.
“These fakes are often highly sophisticated and the result can be devastating for customers when they realise they’ve been scammed,” WA mines and petroleum minister David Michael said.
“If a deal seems too good to be true, it probably is.
“The Mint is working closely with WA Police to raise awareness and protect people from being ripped off.”
Why is gold hitting record prices?
Donald Trump’s tariffs on dozens of countries has sparked global upheaval.
It caused sharp drops in the US, Australian, and other major share markets, with tens of billions of dollars being lost and then gained in days of each other.
The foreign policy has sparked recession fears in Australia and the US, which could see market instability for months to come.
But Mahoney told Daily News that it’s not just what’s coming out of the US that’s pushing people towards gold.
It’s also a combination of the two wars in Ukraine and Gaza, domestic and overseas interest rates, and central banks funnelling a lot of their investment into the natural resource.
China, in particular, has been buying up tonnes of gold in the last year to reduce its dependency on the US dollar.
“This time last year, people were saying, ‘Oh, will gold hit $4,000 an ounce?” Mahoney said.
“Most people were saying there’s no way we’ll see that the next five years. And then all of a sudden we’ve had record growth.”
Gold expert throws cold water over ‘get-rich-quick’ idea
Even though gold is used in industries like tech, medicine, currency, jewellery, machinery and others, Mahoney said the precious metal hasn’t been an investments that make you a millionaire overnight.
“Gold is definitely one of those things that, when an expert tries to predict it, it really could go any way,” she told Daily News.
“But if we look at past trends, we can confidently say that if you buy an ounce bar tomorrow, you’re not going to lose all of your money.
“Gold is a long-term investment.
“You’re not buying gold to make 100 per cent back overnight or to double your money by next year.
“No one is investing in gold to get rich quick. It’s very much a long term safe hold.
“So if you’re going to need to need that cash within the next year, you don’t buy gold, because you’re not going to make the money back. It’s a long hold, like 5, 10, 15, 20 years.”
