http://www.cbc.ca/news/canada/ottawa/fake-gol...-says-1.4380...
A gold bar purchased in Ottawa that turned out to contain no gold did not
come from the Royal Canadian Mint, the Crown corporation said today.
The mint's statement came the day after CBC News reported that tests
showed the 1-ounce gold bar, purchased last month by an Ottawa jeweler from a
Royal Bank branch in the Glebe, indicated it contained none of the precious
metal.
The bar was stamped with the Royal Canadian Mint's insignia and the
packaging it came in bore the mint's name.
But the mint said it didn't originate there.
"The Mint did not manufacture, ship, or sell the above-mentioned
product," the mint said. The mint complained the discovery and
subsequent news report "has raised unfounded speculation as to the
origins of the counterfeit and the purity of Royal Canadian Mint bullion
products.
"Counterfeiting of Royal Canadian Mint products is extremely rare and
this is an isolated case," the statement continued. "We take
suspicion of counterfeit seriously and work with law enforcement to support
their investigations."
According to the statement, the mint tests all its gold products to ensure
they're 99.99 per cent pure.
But despite the mint's claim that counterfeits are rare, a quick internet
search shows such products abound.
For example, the online retailer Wish.com offers what it describes as a
"Canadian Gold Bar 1 OZ .9999 Premium Gold" for a price of $13 plus
shipping.
The bar shown also bears the stamp of the Royal Canadian Mint.
"It boils down to product knowledge," said veteran coin
collector Sean Isaacs. "And the first line of defense is knowing what
you're dealing with."
Calling it a "critical, frontline tool" for the bullion and coin
dealer, Sean Isaacs said he paid about $1,100 for his Sigma Analytics
precious metal verifier.
The verifier works by analyzing the conductivity of precious metals such
as silver and gold.
Isaacs said a reliable verifier is something every bank dealing in
precious metals should have on hand.
"The average teller at a bank I don't think has the training to
recognize those [counterfeit] products, which is why, in my opinion, you
either need a tool to allow you to do that, or the product knowledge to know
what you're handling."
RBC spokesperson Anika Reza confirmed today the incident is being
investigated internally but wouldn't say if the bank is making changes to how
it handles and verifies bullion.
Isaacs said the fake gold bar purchased in Ottawa last month probably
wasn't even made in Canada.
"It's very likely produced overseas, as with the packaging," he
said. "It doesn't help anyone when something like that turns up in the
market, and particularly when it's sold by a financial institution."
Brian Bosse, an analyst with Murenbeeld & Co., a Toronto-based
forecaster of gold prices for the mining and investment sectors, has the same
concern.
Bosse said if it's learned that more of the counterfeit bars are in
circulation, the result would be a chill on the gold market.
"This is not a one-off. Nobody does this once. The real question is:
How did this get into RBC's inventory?"
Bosse said most buyers never question the authenticity of gold bars
purchased from banks.
"They know they bought it from a bank, so they're sure that it's
good. But that concept is now under attack if there's more than one of these
out there."
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