March 2, 2011

Pitfall of Investing In Gold

Pitfall of Investing In Gold


photo by ramyo at http://www.flickr.com/photos/ramyoga/ 

If you invest in or plan to invest in gold, note that there is a pitfall of investing in gold.

Gold investment comes with the risk of parting money for useful gold - fake gold. Fake gold is a gold-like metal that is the gold that it claims to be. A simple analogy is to purchase a piece of stone that is painted to look like gold. This fake stuff is a con job because is worth less than what you spend on the purchase.

Read more about fake gold in this article:


Fake gold in HK but silver lining here


All that glitters can sometimes be a deceitful alloy of seven metals - with just a touch of gold, jewellers in Hong Kong have been finding out this year.

A report by the Financial Times yesterday said that hundreds of ounces of fake gold are making their rounds among goldsmiths in Hong Kong - the most sophisticated counterfeit that they have seen in decades.

'It's a very good fake,' Haywood Cheung, president of the Chinese Gold & Silver Exchange Society, was quoted by FT as saying.

One of the fakes discovered had a coating of pure gold but contained an alloy of seven other kinds of metals - osmium, iridium, ruthenium, copper, nickel, iron, and rhodium - mixed with bullion, according to the report.

The latest and most ingenious mix of metals is not cheap - iridium costs US$700-$800 per troy ounce.


... read more

Source: The Business Times
Author: Joyce Hooi

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