Counterfeit gold bar sold to Centretown jeweller
By Carlos Verde
The discovery of a counterfeit gold bar sold to an Ottawa jeweller by the Royal Bank of Canada has left the city’s gold community shaken — including a Centretown gold dealer who helped confirm the fake had no precious metal.
Samuel Tang of Joy Creations, a goldsmith shop in the Glebe, purchased a one-ounce gold bar with what appeared to be Royal Canadian Mint markings on Oct. 18.
Upon further inspection, it proved to be a gold-coloured fake — something that prompted widespread media coverage and left gold buyers across the city on high alert.
“I see counterfeited gold all the time, (but) not in the form of bars and coins or bullion,” said Ernest Marbar, owner of Gold Lobby in Centretown and one of those who helped identify the bar as a fake. “It’s not a (large-scale) problem, not in bars and coins, as that (counterfeit) bar was the first one I’d seen in a very long time — it was an obvious fake.”
Marbar, who operates his gold exchange business near the corner of Bank and Gilmour streets, was asked by the CBC to test the fake bar. Using an acid test for 14-karat gold, he confirmed that the bar Tang had purchased was counterfeit — “a piece of junk,” as he told CBC.
The Centretown gold expert told Centretown News that the fake bar raises questions about banks’ handling and verification methods.
Gold is one of the world’s hottest commodities, and Marbar’s shop — self described on its website as Ottawa’s “go-to experts on testing gold” — is one of the city’s busiest destinations.
“I see people from all walks of life — students, older people (with) inheritances, dentists — anybody and everybody,” said Marbar, whose clientele ranges from those seeking a quick buck to others in search of affordable engagement rings.
“People are buying, people are selling, (and) this is the oldest traded commodity in the world, from the dawn of civilization.”
RBC spokesperson Anika Reza said the issue with Joy Creations had been rectified.
“We recognize that this was an unfortunate situation for our client and can confirm that we have reached a resolution with them,” Reza said in a statement, adding that the “vast majority” of RBC’s gold bullion is sourced from the Mint. “In limited instances, clients may request products from a different supplier and we work closely with them to ensure we acquire the most secure product available.”
The Mint also released a statement about the fake bar sold to the Ottawa jeweller.
“The Mint did not manufacture, ship or sell the above-mentioned product,” said spokesperson Alex Reeves. “RBC has confirmed that the bar it sold to its customer did not come from the Royal Canadian Mint and it continues to investigate the matter.”
The mint’s statement stressed the rare nature of counterfeit Mint products.
“Attempts to re-sell counterfeit Royal Canadian Mint bullion products are rare and this is an isolated case,” said Reeves. “We take any suspicion of counterfeiting seriously and work with law enforcement to support their investigations.”