Since this article was written, the problem of counterfeit gold being passed off as valuable, has not stopped. Douglas Diamonds in both Owatonna, MN and in Faribault, MN continue to see these items coming into our stores to be tested.
As the weather gets warmer, we will be seeing an uptick in this activity, so please be ware. Here is how it works: A scammer approaches people at Walmart, a grocery store or a gas station asking for monetary assistance while claiming that the jewelry item they want to give you is gold! It is not until the person comes in to have the item checked that they realize that they have been scammed and have not received any gold.
It is a kind thing to help someone in need, but if you are in that position know that the money given in exchange for the “gold” will most likely just be a donation. You will not actually receive a purchase value for those items.
All that glitters is not gold; it may be counterfeit.
By Josh McGovern
Josh.mcgovern@apgsomn.com
Counterfeit jewelry sold on the streets isn’t uncommon, even in Faribault. But in the last month, Douglas Diamonds, A local jewelry store, has Seen at least four Customers enter with counterfeit jewelry to sell. Mark Douglas, Owner of the store, has been in the game long enough to know a counterfeit when he sees it. Regardless, Douglas Diamonds tests gold jewelry for authenticity for free.
“Oftentimes people will have one item and they’ll say they need gas Money to get to Duluth or their mother is sick or whatever” Douglas Said. “It comes and goes. It’ll Stick around for days or weeks, but this one seems to be getting into months.”
In many cases, Douglas Said a counterfeit seller approaches a person at a gas Station or a store parking lot and makes the claim that they need quick money for good, shelter or travel. The seller offers a piece of gold jewelry in exchange for an amount of cash that the seller claims is less than its value.
Douglas Said he has met people who have lost hundreds and even thousands of dollars. He implores area residents to use caution and have any gold tested before purchase.
“Never buy anything without having it tested by a jeweler.” Douglas Said.” I don’t know about other stores, but we will test gold for free.”
The test itself only takes a few seconds and can be done in plain view at the store’s front counter. Douglas Presented an example with the counterfeit necklace and a real gold ring. In a glass bottle, Douglas removed a dropper of nitic acid and placed a drop on the jewelry. The counterfeit immediately bubbled and turned a green color. When dropped on the real gold, the acid did not react.
Douglas said buyers cannot trust the karat marking. Fraudsters can easily add a fake stamp. All it takes is a stamping tool which can be bought online and a mallet or hammer to tap the end pf the tool against the piece of jewelry.
“I can get one on eBay. ”And I’m sure others can too,” Douglas Said.
With so many government regulations in place for professional jewelers to purchase gold, Douglas takes precautions in purchasing gold. By law, when buying gold, Douglas must hold it for two weeks in a safe before taking it to the smelter. Should the item be reported to the police as stolen, there is an opportunity for the item to be returned.
‘It’s an investment” Douglas Said. “I assume that risk when buying gold from somebody. But I think it should be longer than two weeks. That would give people a better opportunity to report their stolen items and have them returned.”
The Faribault Police Department and Rice County Sheriffs office indicated there have been minimal reported incidents of this happening in and around Faribault.
Other Jewelers contacted by the Daily News have not heard about a counterfeit scam. However, Douglas Diamonds is one of the few jewelers in the Faribault area that buys gold.
Reach reporter Josh McGovern at 507-333-3128
As the weather gets warmer, we will be seeing an uptick in this activity, so please be ware. Here is how it works: A scammer approaches people at Walmart, a grocery store or a gas station asking for monetary assistance while claiming that the jewelry item they want to give you is gold! It is not until the person comes in to have the item checked that they realize that they have been scammed and have not received any gold.
It is a kind thing to help someone in need, but if you are in that position know that the money given in exchange for the “gold” will most likely just be a donation. You will not actually receive a purchase value for those items.
All that glitters is not gold; it may be counterfeit.
By Josh McGovern
Josh.mcgovern@apgsomn.com
Counterfeit jewelry sold on the streets isn’t uncommon, even in Faribault. But in the last month, Douglas Diamonds, A local jewelry store, has Seen at least four Customers enter with counterfeit jewelry to sell. Mark Douglas, Owner of the store, has been in the game long enough to know a counterfeit when he sees it. Regardless, Douglas Diamonds tests gold jewelry for authenticity for free.
“Oftentimes people will have one item and they’ll say they need gas Money to get to Duluth or their mother is sick or whatever” Douglas Said. “It comes and goes. It’ll Stick around for days or weeks, but this one seems to be getting into months.”
In many cases, Douglas Said a counterfeit seller approaches a person at a gas Station or a store parking lot and makes the claim that they need quick money for good, shelter or travel. The seller offers a piece of gold jewelry in exchange for an amount of cash that the seller claims is less than its value.
Douglas Said he has met people who have lost hundreds and even thousands of dollars. He implores area residents to use caution and have any gold tested before purchase.
“Never buy anything without having it tested by a jeweler.” Douglas Said.” I don’t know about other stores, but we will test gold for free.”
The test itself only takes a few seconds and can be done in plain view at the store’s front counter. Douglas Presented an example with the counterfeit necklace and a real gold ring. In a glass bottle, Douglas removed a dropper of nitic acid and placed a drop on the jewelry. The counterfeit immediately bubbled and turned a green color. When dropped on the real gold, the acid did not react.
Douglas said buyers cannot trust the karat marking. Fraudsters can easily add a fake stamp. All it takes is a stamping tool which can be bought online and a mallet or hammer to tap the end pf the tool against the piece of jewelry.
“I can get one on eBay. ”And I’m sure others can too,” Douglas Said.
With so many government regulations in place for professional jewelers to purchase gold, Douglas takes precautions in purchasing gold. By law, when buying gold, Douglas must hold it for two weeks in a safe before taking it to the smelter. Should the item be reported to the police as stolen, there is an opportunity for the item to be returned.
‘It’s an investment” Douglas Said. “I assume that risk when buying gold from somebody. But I think it should be longer than two weeks. That would give people a better opportunity to report their stolen items and have them returned.”
The Faribault Police Department and Rice County Sheriffs office indicated there have been minimal reported incidents of this happening in and around Faribault.
Other Jewelers contacted by the Daily News have not heard about a counterfeit scam. However, Douglas Diamonds is one of the few jewelers in the Faribault area that buys gold.
Reach reporter Josh McGovern at 507-333-3128