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Spokane pawn shops warn customers of fake gold scams

Dug Karlson, owner of Axel's Pawn Shop, said scammers will claim to be in crisis and try to exchange fake gold jewelry for money at gas stations or in parking lots.

SPOKANE, Wash. — Some jewelry sellers walking into pawn shops are looking to make some quick cash. What they're likely not anticipating is finding out their jewelry is worth nothing.

Axel's Pawn Shop owner, Dug Karlson said he had to break some bad news to potential sellers this weekend. He said several people tried to pawn off fake gold over the weekend.

“When they came in, I didn't even have to acid test them," Karlson said. "I can tell.”

Karlson tests gold with acid to see if it turns green. If it does, he said that means it's fake. 

He also said he can tell whether gold is real or not by its hardness and weight. He'll use a scratch test to get through the jewelry's plating and identify the metal below the plating.

With over 30 years in the pawn shop business, Karlson said he can usually spot the fakes. He said some fake jewelry is getting past standard testing, but more often than not, he knows the real from the fake.

For someone with less experience, he said it can be easy to fall for a scam. 

He said nationwide - scammers are selling fake gold at gas stations and parking lots, telling people they need money for gas to get home.

“They're selling fake gold, approaching people in parking lots, Walmart, gas stations, and they've got a story," Karlson said. "They're broke. They need gas to get your money to get to New York or it's always some money crisis. They prey on people wanting to help them. So they convinced these people that this is real gold, and it's a great deal."

He also said entire families will get involved and try to convince people they need help.

"There'll be crying kids in the car and the mother's all upset and they need diapers and food, you know, for the family." They're just very, very good at convincing people that they're desperate and they have this valuable stuff.” 

Karlson said he knew the jewelry brought in was fake because he recognized it from other pawn shop owners in a National Pawnbroker's Association group.

When scams start happening, people post it and, this one, it was posted all over the country, everywhere, and they were showing pictures and it's the same product, it looks the same," Karlson said. "There are slight variations. But like I said, when they bring it in here, I don't even have to test it. I can feel it and look at it and I know."

Just down the street from Axel's, Double Eagle Pawn said someone came in with fake gold as early as Monday. 

Here, they use magnets to determine if gold is real or fake. If something is real, it’ll push away the magnet. 

The manager said he had a personal interaction with fake gold scammers in Ritzville. He said someone came up to him at the gas station asking for money in exchange for gold. 

That was two years ago, proving this scam isn’t new. However, it is a tactic that continues to scam good Samaritans out hundreds to thousands of dollars.

Spokane police say two fake gold incidents were reported over the weekend.

Officials said if the scammers are caught, it is possible they could face a theft charge.

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