As the value of gold goes up, so does the prevalence of gold fraud. Gold is quickly becoming one of the most valuable assets, especially in the wake of COVID-19.
As a result, gold fraud is becoming more of an issue, as fraudsters sell conflict gold as genuine or distribute gold that is not pure, such as those with tungsten in the middle. There is a difficulty with identifying this gold, as it’s hard to detect, especially in the case of immorally sourced gold.
With the prevalence of child labour, forced work and environmental harm, we need to know that our gold is what it presents as. Here’s what Blockhead Technologies is doing to prevent gold fraud around the globe.
Where is the fraud coming from?
The fraud is often committed by criminals that want to distribute conflict gold but mining companies won’t knowingly buy it. Instead, they disguise conflict sourced gold as authentic clean gold.
There are limited ways to distinguish ‘clean’ gold from ‘dirty’ gold. Because of this, often dirty gold gets let into the global gold trade and sourced by companies attempting to source clean gold.
Alternatively, the gold may not be 100% pure, for instance having tungsten at the centre. This can be identified by melting the gold down; however, since we can only test a select few bars, this makes it a lot harder.
There is overall a more straightforward method. Blockhead Technologies has partnered with ABC Refinery to create STAMP Vision, a platform that tracks gold throughout its lifecycle. Using the iOS and Android mobile application, which features artificial intelligence and machine learning, ABC Refinery clients can confirm the authenticity of their ABC Bullion product at the time of purchase.
STAMP Vision: its potential in clean gold
Given the importance of clean gold, STAMP Vision poses a very appealing solution. It not only provides confidence for customers but also for companies. It can be used to ensure that your company knows exactly where its gold is going. The app uses advanced image processing to create a ‘digital fingerprint’ for each gold and silver bullion bar. This is stored in a crytographically secure manner.
Clients can quickly reference this information, through the mobile app, for assurance that the bullion is authentic and has not been tampered with.