Reports of Fake 999 Gold Being Sold As Genuine, Authorities Warn Buyers Nationwide

Industry warns of fake gold scam

Malaysian goldsmiths are urging buyers to be extra careful after fake gold sold as high-purity scrap gold was discovered in the country.

The Federation of Goldsmiths and Jewellers Associations of Malaysia (FGJAM) said it had seen fewer than 10 suspected cases over the past 18 months.

The cases involved gold mixed with other metals and sold as pure 999 gold. FGJAM recently alerted its members, saying foreign syndicates were believed to be behind the scam.

Mixed metals make detection difficult

FGJAM president Pang Ann Puo said the fake gold contains dense metals such as rhenium and tungsten, making it difficult to identify with standard testing equipment commonly used by jewellery shops.

Earlier samples contained up to 30 per cent rhenium, while more recent cases contained only three to five per cent, making the fraud less obvious.

Based on current gold prices, Pang estimated that buying 100g of the adulterated metal could cost a goldsmith between RM1,800 and RM3,000.

Buyers advised to stay cautious

The added metals are mixed in while the gold is being melted, Pang said, allowing the material to appear genuine during routine inspections. The lower purity usually becomes clear only after the gold is melted again and the alloys are separated.

He urged consumers to buy only from trusted sellers and to be cautious of offers on social media from people without permanent business premises. Gold sold well below the market price should also be treated as a warning sign.

Pang added that FGJAM members obtain their gold from established wholesalers, helping reduce the risk of counterfeit products entering legitimate jewellery stores.

Jewellers share similar experiences

The Malaysian Indian Goldsmith and Jewellers Association (MIGJA) said its members are familiar with the scam and have increased checks on gold purchases.

Its president, Datuk Abdul Rasul Abdul Razak, recalled a customer bringing jewellery to his Kuala Lumpur shop that looked genuine at first glance. Further inspection revealed a silver core covered by a thin layer of gold.

The customer had bought the jewellery years earlier and did not realise it was not solid gold. Abdul Rasul said none of MIGJA’s members had fallen victim to the latest scam attempts and encouraged consumers to avoid buying gold from unknown sellers.