Issue link: https://maltatoday.uberflip.com/i/1186724
21.11.19 14 EUROPE Up to a third of goods sold through online gold exchanges could be fake Over 56% of all unhallmarked gold jewelry sold online is sold on eBay A recent report commissioned by the Goldsmiths' Company Assay Office and the British Hallmarking Council found that up to a third of all gold jewelry sold online could be unhallmarked, and pos- sibly fake. e implications of this are huge, but could also be an opportunity for third party tech solutions that could help in the authentication of gold. As a matter of fact, there has been a variety of blockchain projects that have been tabled or rolled out to address this very issue. e groups who commissioned the study are urging the government and internet giants to help safeguard clients, and enforce online trade. But can it realistically be done? The Facts of the case e study, which was conducted by the WRi Group, took the form of a ten day internet sweep and found that around 36% of all gold merchandise sold through sites like Amazon and Preloved did not mention any kind of hallmarking. Out of these, 24% were suspected to not be real, which makes the listings il- legal. But of all exchanges, eBay seemed to be the worst offender, with over 56% of all unhallmarked gold jewelry sold on- line taking place on the site. In addition, they were able to establish clear links between listings and retail stores where the fake jewelry advertised was sold in large numbers. Hallmarking laws are not being enforced online According to one of the chairpersons at the British Hallmarking Council, Noel Hunter, the provisions laid out in the Hallmarking Act of 1973 are not be- ing enforced online. ese provisions were put in place to protect retail jewellers and consumers looking for the best place to buy gold online, but there seems to be significant roadblocks that prevent these measures to be properly enacted when it comes to online retailers and exchanges. Hunter also stated that the internet gi- ants didn't seem eager to enforce those rules either. According to him, the sweep was only the tip of the iceberg, and more resourc- es will have to be deployed. Currently, regional Tradings Stand- ards departments have to carry the brunt of the load. e issue is that they have seen a sig- nificant cut in spending over the last five years, which renders them even more inefficient then they already were. Could Blockchain be the solution? Blockchain could however offer a glimmer of hope in this situation. ere has been many blockchain pro- jects centered around authentication and supply chain management and traceability, which could be carried out in the precious metals sector. As a matter of fact, IBM recently an- nounced that they will be using the blockchain to authenticate gold and di- amond jewellery, from the mine to the seller. e TrustChain Initiative as it is called will use blockchain technology based on IBM's Hyperledger to authenticate and trace and jewelry through every single stage, providing more transparency. Online Marketplaces will Have to do their Part Online marketplaces will have to do more to protect consumers and actually enforce their policies instead of simply paying lip service according to Piers Barclay, sitting Chief Strategy Officer at Incopro. Unless the jewelry industry, govern- ment, and exchanges work together, the fight against counterfeit jewelry will be an uphill battle, even with the best tools on hand.