Gold dealers have warned against the spread of fake gold bullion traded at reduced prices outside authorized and licensed gold shops in Riyadh.
Several customers fell victim to these fraudsters, buying gold mixed with glass from street gold vendors, said a local daily.
Salih Al-Aqaili, owner of a gold shop, said some people were selling gold at prices lower than the going rate and warned against the low quality of gold.
He said gold sales are expected to increase due to a surge in demand by customers expecting a gold price hike in the near future.
He said an ounce of gold is currently sold for $1,345, but is expected to hit $1,400.
Ghazi bin Talib, a gold dealer and former deputy head of the National Committee for Gems and Precious Metals, affirmed that no fake gold was sold in licensed shops, adding that if any fake gold is sold, it happens only outside authorized shops.
He said shop owners purchase gold from known and licensed gold workshops and that gold carries the logo and stamp of the manufacturing plant.
Talib attributed the drop in gold prices to market recession during the summer break.
One customers said he noticed a drop in gold prices compared to last month and attributed it to poor demand.
He also advised customers to buy gold only from licensed shops to avoid ending up with fake or poor quality gold.

Source: Arab News