2 arrested in Hong Kong for allegedly swindling pawn shops out of $18,000 with fake gold

The 27-year-old and 54-year-old were arrested earlier this week on charges of "obtaining property by deception" and "attempting to obtain property by deception," police said on Wednesday, according to The Standard.

According to investigators, the pair had brought "highly realistic" fake gold necklaces to pawnshops in Kowloon and the New Territories on six occasions between July and September. One of them successfully deceived staff on three of those visits, resulting in losses of HK$140,000.

"Our investigation also found that the counterfeit necklaces were handmade," Hong Kong broadcaster RTHK quoted an investor as saying.

"The clasps are made of real gold, but the rest of the necklace consists of ordinary metal coated with a thin layer of gold."

Three of the counterfeit gold necklaces and other items seized in the case, as displayed by the Hong Kong police in a Facebook video posted on Oct. 15, 2025. Screenshot from Facebook/HongKongPoliceForce

Police said one suspect remains in custody for further questioning while the other has been released on bail and is required to report back later in October, as reported by the South China Morning Post.

They added that more arrests have not been ruled out as the investigation continues.

Under the law, obtaining property by deception can result in up to 10 years in prison.

Gold prices have soared by around 60% in the year to date due to several factors, including geopolitical and economic uncertainties. It reached a new record above US$4,200 per ounce on Wednesday, Reuters reported.

The precious metal’s rise has driven Hong Kong residents to cash in their bars and jewelry.

Last week, crowds flocked to Chong Kee, a local shop known for its favorable buyback rates, forcing it to halt its ticketing system after reaching a 300-person limit. The owner, surnamed Chong, said demand for the precious metal has been extremely high.