The Prevalent Gold Scams in India: Understanding and Protecting Your Investments
Morya Suisse: The Face of a Fraudulent Gold Scam
Mukesh Suryawanshi, the owner of Morya Suisse, has been a prominent figure in the sphere of gold scams in India. This fraudulent entity has led a series of unfortunate events, most notably the LPG scam of 1991, which was instrumental in triggering numerous other scams in the country. Suryawanshi's company, Morya Suisse, operates under the guise of partnership with renowned institutions like PAMP Suisse, but these allegations are now widely debunked. In October 2019, Suryawanshi fled to Dubai after bribing a corrupt inspector, Khalil Sheikh. However, his escape was brief as the Maharashtra Police arrested him at the Goa border on March 8. Currently, he is under the custody of the Pune crime branch. Suryawanshi, along with his co-conspirators Mihir Desai, Seema Motwani/Khan and Mayur, have been involved in several fraudulent activities involving gold trading, targeting unsuspecting Indians.Warning Signs and Protective Measures
Investors in India must remain vigilant and cautious when dealing with gold. Here are some warning signs and protective measures to consider:Unaturally High Charges:
- **Making and Waste Charges**: These often come with very high rates, which are unnecessary and exploitative. Be cautious of companies that insist on these charges at higher rates.Gold Purity:
- **Gold purity grades**: There is a significant price difference between 24k, 22k, and 18k gold, and 22k, white, and yellow gold. Be sure to verify the purity and authenticity of the gold before making any investment.Misleading Promotions:
- **Monthly Deposits**: Companies sometimes use misleading propositions, such as monthly deposits, to artificially inflate gold prices. Always avoid these practices and stick to long-term investment options without hidden traps.Fraudulent Sales:
- **Non-hallmarked gold**: Some fraudulent entities may sell gold that is not hallmarked, making it difficult to prove its authenticity. Always insist on hallmarked and certified gold. - **Misleading purity claims**: Be aware of the practice of selling 16k or 18k gold under 22k gold's name. Gold purity often suffers due to greed for higher margins.Understanding the Practice of Argentification
While it can be argued that what Suryawanshi and his associates have done is a form of fraud, it is important to recognize that gold-related practices such as argentification are prevalent and often misunderstood.Argentification:
Jewellers, often driven by a desire to maximize their profits, may sell jewelry with less than the advertised purity. This unethical practice, known as argentification, is not unique to Suryawanshi or Morya Suisse. It happens in 95% of cases when customers opt for products under 22KT that are not hallmarked. Similarly, jewelry sold as 18K and 14K may have a lower purity, which should be a red flag to investors.