George Yang, Author at Goody Feed

You’d have seen Ah Bengs walking proudly with their thick gold chains. But they might not be fully gold. As gold prices hit record highs, some retailers in Singapore have started selling "gold-plated silver" jewelry. Here’s what happened. Gold-Plated Silver Jewelry Raises Concerns Among Traditional Goldsmiths & Pawnshops Unless you live under a rock, you’d have known that gold prices have surged 30% in 2024, the biggest annual increase since 2010, as investors seek to hedge against uncertainties stemming from prolonged conflicts in the Middle East and other regions. After all, the value of gold won’t go up and down like Bitcoin even if Donald Duck is elected as the US President. And following the U.S. Federal Reserve's first interest rate cut in four years on 18 September 2024, gold prices hit new highs for six consecutive trading days, reaching a record high of $2,700 per ounce on 26 September. It’s good news for people who are holding gold, but it’s causing some people to do some…weird things. Some retailers in Singapore have started selling "gold-plated silver" jewelry, causing concern among traditional goldsmiths and pawnshops. Gold-plated silver jewelry features a silver core covered with a layer of gold, making it nearly indistinguishable from solid gold jewelry at first glance. However, it is approximately 80% cheaper than 999 pure gold jewelry of the same weight. The retailers worry that these gold-plated silver items could be mistaken for genuine gold when resold or pawned, or even used for fraud by unscrupulous individuals. According to LianHe Zaobao, most shop owners in People's Park Complex, a traditional hub for goldsmiths in Singapore, are familiar with this technique. One owner who has been in the business for over 50 years said that most industry players associate this technique with scams by Indonesian fraud groups in the past, but they haven't heard of similar scams in the last 10 years. Some shop owners fear that the circulation of gold-plated silver jewelry could disrupt market order and make it difficult to authenticate the genuineness of gold items. Others believe that pure gold and gold-plated silver cater to completely different target customers, so there is no potential for market competition or disruption. The President of the Singapore Jewellers Association (SJA), told Lianhe Zaobao that the circulation of gold-plated silver jewelry could cause concerns among some businesses when the items change hands or are pawned. The association recently issued a special reminder to its members to be vigilant against gold-plated silver being passed off as genuine gold jewelry. "Whether to purchase such jewelry is a personal choice for consumers, but they should be careful to differentiate. Retailers must also clearly label and explain to consumers when selling," he said. In 2015, the SJA and the Consumers Association of Singapore (CASE) launched the "CaseTrust-SJA" certification scheme. Certified retailers have undergone strict and comprehensive audits, offering better protection for consumers' interests. SJA only accepts members who sell pure gold (without other components), and gemstone and precious metal dealers should also register with the Ministry of Law as regulated dealers. Without these relevant certifications, it may be more difficult for consumers to resolve disputes in the future. The President of the Singapore Pawnbrokers' Association, said that pawnshops will not accept gold-plated silver jewelry due to difficulties in reselling and low profitability. While consumers can purchase these items if they find the prices reasonable, some individuals might try their luck by pawning gold-plated silver as genuine gold. Although there are now devices that can test the purity of gold in jewelry, some pawnshops still rely on touch and visual inspection, making them vulnerable to fraud. However, some pawnshops choose to cut open the jewelry when in doubt. Yah, I didn’t know that people do that. So remember: if in doubt, check. Don’t rely on touch and visual. And if you can't afford gold, then don't buy lah.