As the gold price increases to historic highs surpassing the $5,100 mark (US$3,270), there are more people scamming customers with ‘fool’s gold’.
Last week, The Perth Mint and Western Australian Police warned people regarding counterfeit gold and silver products being sold through online marketplaces.
Some of the scams include counterfeit products being sold through online sites such as eBay and Facebook, while some are being traded in exchange for goods and services.
According to biotechnology company Thermo Fisher Scientific fool’s gold is technically pyrite or iron sulphide — one of the most common sulphide minerals. Pyrite is referred to as ‘fool’s gold’ due to it resembling gold to the untrained eye.
The US Geological Survey reports that fool’s gold can be one of three minerals, and besides pyrite, that comprises chalcopyrite and weathered mica. Chalocpyrite appears gold-like, while weathered mica mimics gold as well.
Compared to real gold, these minerals will flake, powder, or crumble when poked with a metal point. Gold, on the other hand, will gouge or indent like soft lead. The US Geological Survey adds that real gold leaves a golden yellow streak when scraped on a piece of unglazed porcelain, while pyrite and chalcopyrite leave a dark green to black streak and mica leaves a white streak.
Counterfeit gold can be made up of various materials including brass, nickel, copper, zinc, tungsten, and stainless steel.
Pawnbroker Pawn Pro says that fake gold will usually be stamped with 18k — making it look real to anyone who is not familiar with buying and selling gold.
Mines and Petroleum Minister David Michael says these newest fake gold sales are often sophisticated and the result can be devastating for customers once they’ve realised they have been scammed.
“If a deal seems too good to be true, it probably is and 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 Western Australia,” Michael says.
Both The Perth Mint and police force are working together to alert customers to the threat, while also providing guidance on how to avoid falling victim to these scams.
This news comes after The Perth Mint saw a spike in sales amid record high prices. During March 2025, the Perth Mint sold 40,537 troy ounces of gold and 713,306 ounces of silver in minted product form.
The precious metals’ spot price sat at US$3,309 ($5,158) per ounce at the time of writing.
Write to Aaliyah Rogan at Mining.com.au
Images: PMT Refinery
