A new form of gold adulteration is raising concerns among jewellery traders, with unscrupulous suppliers allegedly mixing fine powders of heavy metals into gold to artificially increase its weight. The adulterated material, reportedly known in the market as 'Gold Powder', is difficult to identify through conventional gold purity testing methods.

The development has triggered concern among bullion dealers, jewellery manufacturers and traders, particularly because adulterated gold can appear similar to genuine gold during initial inspection.

Acid and touchstone tests fail

The biggest challenge with this new method of gold adulteration is that conventional testing techniques may not identify the presence of heavy metals.

According to reports, the adulterated gold can pass standard acid tests and touchstone examinations, creating the impression that the metal meets the required purity standards.

The fraud reportedly becomes evident only when the gold is melted and processed during jewellery manufacturing. At this stage, artisans may discover that the quantity of actual gold recovered is significantly lower than expected.

This has raised concerns among jewellery manufacturers who purchase gold based on its apparent weight and preliminary purity assessments.

Indore jewellery traders call emergency meeting

The issue came to light after several jewellery artisans operating in Indore's Sarafa market reportedly complained to local traders about suspected gold adulteration.

Following these complaints, the Indore Silver, Gold and Jewellery Traders Association convened an emergency meeting on Monday evening.

During the meeting, the association issued instructions to bullion dealers and brokers to exercise greater caution and ensure the purity of gold before conducting transactions.

The development has prompted traders to review their gold procurement and testing procedures to minimise the risk of financial losses.

Ruthenium, iridium and osmium allegedly used in gold adulteration

According to traders in the Sarafa market, complaints involving the mixing of heavy metals such as ruthenium, iridium and osmium into gold have emerged over the past two to three years.

These metals have a higher density than gold, allowing even relatively small quantities to increase the overall weight of the adulterated material.

This makes the practice particularly difficult to detect through conventional acid tests, touchstone examinations and older-generation carat-testing machines.

Traders have also raised concerns about the supply chain of the suspicious material. The so-called gold powder is reportedly entering Indian markets through Maharashtra and West Bengal. There are suspicions that it may be manufactured in China, although its origin has not been independently established.

The material is reportedly available at prices approximately 10% below prevailing gold rates, making it potentially attractive to buyers unaware of the adulteration risk.

Advanced technology needed to identify fake gold

Detecting this form of adulteration may require more sophisticated testing methods than those traditionally used by jewellery retailers.

Techniques such as X-ray Fluorescence (XRF) analysis and electron microscopy can help identify the presence of foreign metals and examine the composition of gold samples.

The emerging concerns highlight the need for bullion traders, jewellery manufacturers and retailers to strengthen quality-control procedures.

For consumers, the development also underlines the importance of purchasing hallmarked jewellery from reliable sellers and ensuring that appropriate purity checks are conducted before buying gold.