When Gold Isn’t Gold: Why Buying Well Matters

Counterfeit bullion is rising, but the risk is manageable. Here’s how to buy gold with confidence and why provenance matters more than ever.

Table of Contents

1. A market strong enough to attract counterfeits
2. Why this matters for investors
3. The good news: the industry is responding
4. How to buy bullion with confidence
5. Quick facts

Gold’s role has not changed. It remains one of the world’s most trusted stores of value. What has changed is the need to buy it through the right channels.

That matters because counterfeit bullion is becoming more sophisticated. In 2019, more than 1,000 counterfeit gold bars worth over US$50 million were discovered in vaults around the world, according to the LBMA. These were not crude imitations; they carried forged refinery stamps, matched expected weight and assay details, and some even appeared to show very high purity on the surface.

“The reality is that some counterfeit bullion now looks far more credible than people expect,” says Tony Coleman, Managing Director of New Zealand Gold Merchants. “That shouldn’t put buyers off gold, but it should remind them to place real value on provenance and trust.”

A market strong enough to attract counterfeits

There is an important distinction here. Counterfeit risk is not a reason to distrust gold. If anything, it reflects gold’s enduring value. High-demand, high-value markets always attract opportunists.

That is why major industry bodies are now putting more emphasis on traceability and bar integrity. In January 2025, the LBMA launched its Gold Bar Integrity Database, and in October 2025 Reuters reported that data submission to the platform will become mandatory for LBMA-accredited refiners from 2027. The goal is straightforward: more transparency, stronger traceability, and more trust in the bars underpinning the global market.

That is the real story. The market is not ignoring the issue. It is responding to it.

Why this matters for investors

For most buyers, the risk is not gold itself. It is poor provenance.

A bar bought from a reputable bullion merchant is very different from a bar bought through an informal seller, a private listing, or an online marketplace offering a price that seems too good to be true. Australian refiner Perth Mint has publicly warned that it has seen an increase in counterfeit bars and coins using its branding and packaging, and advises buyers to avoid private or unverified online listings. It also notes that even experienced investors can be caught out.

“Here in New Zealand, what investors are really paying for is confidence,” says Coleman. “Not just in the metal itself, but in its authenticity, its origin, and its ability to be resold with certainty.”

That is especially important for new buyers. Gold should feel reassuring, not uncertain. If the source is right, bullion remains exactly what many investors want it to be: a tangible asset with enduring value.

The good news: the industry is responding

This is the part often missed in articles about counterfeits. Yes, the risk exists, but so do the safeguards.

The bullion industry already has strong frameworks around recognised refiners, testing, chain of custody and dealer reputation. New Zealand Gold Merchants use XRF testing capability not to jeopardise their business by handling suspect products.

So the message for investors is not “be afraid”. It is “buy with discipline”.

“For most buyers, the answer is not to become an expert in counterfeit detection,” says Coleman. “It is to deal with people who already have the systems, testing, and experience in place.”

How to buy bullion with confidence

If you are buying physical gold, the basics still matter most:

• buy from an established bullion merchant
• be cautious of unusually low prices
• avoid unverified private sellers
• make sure the product can be properly authenticated
• value trust and process as much as price

That approach keeps the issue in perspective. Counterfeit bullion is a real risk, but it is also a manageable one. And it should not put thoughtful buyers off owning gold.

“For new buyers especially, bullion should feel straightforward and reassuring,” says Coleman. “A well-bought piece of gold should give you peace of mind from day one.”

Gold has protected wealth for generations. That has not changed. What matters today is making sure the product in your hand is every bit as sound as the investment decision behind it.

View available gold and silver bullion products

Quick Facts

How common is counterfeit gold?
It is a real global issue, and industry bodies including the LBMA and Perth Mint have publicly warned about increasingly sophisticated counterfeit bars and coins.

Should this put new buyers off gold?
No. Gold remains widely trusted. The safer approach is simply to buy through reputable, established channels.

Why does provenance matter?
Because authenticity, traceability and resale confidence are part of the investment value of physical bullion.