Perth Mint issues warning after West Australians caught buying fake gold from scammers amid surging prices

West Australian

26-04-2025

West Australians have gold fever, with surging prices for the precious commodity leading to a rise in people trying to cash in.
But for some, the lure is backfiring and they have been caught up in elaborate scams where they're tricked into thinking they're buying the real deal but in fact have snapped up fakes.
Police, the State Government and the Perth Mint have issued fresh warnings to prospective buyers to do their research before online purchases on sites like eBay, Facebook Marketplace or even buying from shonky dealers.
Record numbers of people are approaching the Mint to cash in on high prices — the Mint buying at $5150 per ounce this week — but just this week, three got a nasty surprise.
Trying to sell what they thought were gold cast bars, the three were stunned to be told they were fake — worth nothing.
All are believed to have bought, at what they believed to be bargain prices, one-ounce and 20gram bars online. The fake bars were made to look like they had originally been bought at the Mint, and apparently stamped with its insignia.
'If a deal is too good to be true, it probably is,' Perth Mint chief operating officer Dion Paunich told The Sunday Times.
'We are seeing cases where people, mums and dads, are in good faith making purchases that down the track have proved to be fake.'
Mr Paunich said the Perth Mint had never seen so many people wanting to sell gold, driven by its ever-rising price. Gold is seen as a safe bet during uncertain times and has been driven higher in recent months given US trade sanctions imposed by Donald Trump, ongoing tensions in the Middle East and the Russia-Ukraine war.
'It's unprecedented levels in terms of interest in bullion sales,' Mr Paunich said, adding anything that glittered, including jewellery, bars and coins, was coming in for sale.
'Over the past year we have seen a real spike in gold, and it continues to go up. That has brought about a strong interest in people wanting to sell gold that they have had for a period of time and, understandably, take some profit in that.'
He urged anyone who suspects they have been sold fake gold to contact police and consumer protection.
'We take counterfeiting seriously and are committed to protecting our customers,' Mr Paunich said.
'The best way to ensure you are buying real gold is to purchase it through official channels from trusted and reputable dealers such as the Perth Mint or one of our approved distributors.'
Mines and Petroleum Minister David Michael said being stuck with fool's gold was devastating.
'These fakes are often highly sophisticated, and the result can be devastating for customers when they realise, they've been scammed,' Mr Michael said.
'That's why we're urging customers to do their due diligence and only purchase gold and silver precious metal products from reputable and trusted dealers like The Perth Mint which is owned by the people of WA.'
Police Minister Reece Whitby warned scammers police were on to their crimes — but prevention was just as important.
'That's why it's critical we work together with trusted organisations like The Perth Mint to raise public awareness,' he said.
'If something doesn't feel right, report it. Your vigilance could prevent others from being scammed.'
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