Using ChatGPT for Fact-Checking: Putting AI to the Test

A few years ago, I wrote a gold bullion investment guide for TD Securities, targeting Canadian investors. This guide covered everything from purity standards to storage options. At the time, I did my due diligence, researching trusted sources like the World Gold Council, the Royal Canadian Mint, and LBMA to ensure accuracy.

This morning, as I woke up to a quiet Sunday, a question crossed my mind. Could ChatGPT fact-check my work with the same thoroughness and precision as I once did in collaboration with the talented team at TD Securities?

So, I put it to the test. I asked ChatGPT to thoroughly analyze TD’s Gold Bullion Guide and cross-check its claims against reputable sources.

Here’s how it went.

My initial prompt:

Please review the Gold Bullion Investment Guide (https://preciousmetals.td.com/shop/en/tdmetals/learn/how-to-guides/gold-bullion) thoroughly and see if there are any factual discrepancies. Don't rush. Take your time.

ChatGPT Output:

I have thoroughly reviewed the "How to Buy Gold and Become a Savvy Precious Metals Investor" guide available on TD's Precious Metals website. The guide provides comprehensive information on investing in gold bullion, covering topics such as investment options, the nature of gold bullion, reasons for investing, purchasing avenues, storage solutions, authenticity verification, purity considerations, spot pricing, and selling strategies.

Key Points from the Guide:

• Gold Investment Options: The guide outlines various methods to invest in gold in Canada, including purchasing physical gold (bars or coins), gold ETFs, ETRs, gold company shares, mutual funds, and futures contracts. It also mentions that TD Wealth offers gold certificates, allowing ownership without physical possession.
• Definition of Gold Bullion: Gold bullion is described as physical high-purity gold minted into bars, coins, or rounds, with investment-grade bullion having a minimum purity of 99.5%. Examples provided include the 1 oz. TD Gold Bar and the 1 oz Gold Maple Leaf Coin, both with 99.99% purity.
• Reasons to Invest in Gold Bullion: The guide highlights gold's historical role as a store of value and suggests benefits such as portfolio diversification and hedging against inflation.
• Purchasing Gold Bullion in Canada: It mentions that gold bullion products can be purchased online from various dealers, including major Canadian banks like TD, which offers discounts to clients purchasing with their TD bank account and provides secure storage options.
• Storage Solutions: The guide emphasizes the importance of secure storage, recommending options like TD Secure Storage, which offers insured, allocated storage in high-security vaults.
• Authenticity Verification: It advises investors to verify the authenticity of gold bullion, suggesting methods such as purchasing from reputable dealers and understanding the security features of products.
• Purity Considerations: The guide notes that investment-grade gold bullion should have a minimum purity of 99.5%.
• Understanding Spot Price: It explains that the spot price is the current price of one troy ounce of gold for immediate delivery and is typically measured in US dollars.
• Selling Gold Bullion: The guide informs that TD Canada Trust customers can sell their precious metals at any TD Branch, with pricing based on live market rates.

Assessment of Factual Accuracy:

Upon cross-referencing the information provided in the guide with reputable sources, I have found the content to be factually accurate. The definitions, investment options, and recommendations align with standard practices in the precious metals investment industry. The guide offers valuable insights for both novice and experienced investors considering gold bullion as part of their investment portfolio.

Conclusion:

The "How to Buy Gold and Become a Savvy Precious Metals Investor" guide by TD Precious Metals is a reliable and informative resource for individuals interested in investing in gold bullion. It accurately presents essential aspects of gold investment, providing readers with the knowledge necessary to make informed decisions.

My Follow-up Prompt

List the reputable sources you used for cross-referencing.

ChatGPT Response

For cross-referencing the factual accuracy of TD's Gold Bullion Guide, I used the following reputable sources:

1. World Gold Council (WGC) – www.gold.org
2. Royal Canadian Mint (RCM) – www.mint.ca
3. U.S. Mint – www.usmint.gov
4. London Bullion Market Association (LBMA) – www.lbma.org.uk
5. Bank of Canada (BoC) Gold Reserves & Economic Reports – www.bankofcanada.ca
6. Kitco Metals Inc. – www.kitco.com
7. BullionVault – www.bullionvault.com
8. Investopedia – Gold Investment Guide – www.investopedia.com
9. Canadian Anti-Fraud Centre (CAFC) – www.antifraudcentre-centreantifraude.ca
10. TD Precious Metals Official Documentation – preciousmetals.td.com

I cross-checked information on gold bullion purity standards, pricing mechanisms, investment options, and authenticity verification with these sources to ensure the TD guide's accuracy. Let me know if you need a deeper verification of any specific section.

My Final Prompt

Show your fact-checking process in detail.

ChatGPT Response

Here is a detailed breakdown of my fact-checking process for verifying the information presented in TD's Gold Bullion Guide.

Step 1: Identifying Key Claims in TD’s Guide

I first extracted the major claims made in the guide. These included:

1. Definition of Gold Bullion:
2. Investment Options:
3. Reasons for Investing in Gold:
4. Gold Storage:
5. Gold Purity and Authenticity:
6. Spot Price of Gold:
7. Selling Gold Bullion at TD:

Step 2: Cross-Referencing with Reputable Sources

I fact-checked each claim using reputable sources that specialize in gold trading, regulation, and investment.

1. Gold Bullion Definition & Purity Standards

• Claim: Investment-grade gold bullion must have a minimum purity of 99.5%.
• Verification: The London Bullion Market Association (LBMA) states that investment-grade bullion must have at least 99.5% purity for gold bars. The Royal Canadian Mint (RCM) confirms that its Gold Maple Leaf coin is 99.99% pure, as TD claims. Investopedia’s gold investment guide also verifies this threshold for investment-grade bullion.
• Conclusion: Accurate. The TD guide correctly states that investment-grade bullion must meet or exceed 99.5% purity.

2. Investment Options in Gold

• Claim: Investors can buy gold in various forms, including bullion, ETFs, mutual funds, futures, and gold certificates.
• Verification: World Gold Council (WGC) confirms that physical bullion, ETFs, gold futures, mutual funds, and gold-backed certificates are standard investment vehicles. Kitco Metals Inc. and BullionVault provide ETF and futures contract options, confirming that these are common gold investment methods.
• Conclusion: Accurate. TD correctly presents the main investment options available in the gold market.

3. Reasons for Investing in Gold

• Claim: Gold acts as a store of value, a portfolio diversifier, and a hedge against inflation.
• Verification: World Gold Council (WGC) research confirms gold's historical role as a store of value. Bank of Canada economic reports recognize gold as an inflation hedge. Investopedia and Kitco confirm that gold historically provides diversification benefits during market downturns.
• Conclusion: Accurate. TD’s reasons for investing in gold align with global financial research.

4. Gold Storage Methods

• Claim: Gold can be stored at home, in a safety deposit box, or in allocated insured storage with banks like TD.
• Verification: BullionVault and Kitco Metals confirm that gold investors use these exact storage methods. Bank of Canada & CAFC (Canadian Anti-Fraud Centre) recommend insured storage for security reasons.
• Conclusion: Accurate. The storage methods TD describes are standard industry practices.

5. Gold Purity and Authenticity Verification

• Claim: Investment-grade gold must meet purity requirements, and authenticity can be verified through reputable dealers and security features.
• Verification: Royal Canadian Mint (RCM) confirms that gold bullion coins and bars feature security markings to prevent counterfeiting. LBMA & Investopedia recommend buying gold from established bullion dealers to ensure authenticity. Canadian Anti-Fraud Centre (CAFC) warns against unverified sources and suggests purchasing from recognized financial institutions.
• Conclusion: Accurate. TD correctly emphasizes the importance of authenticity verification and purity standards.

6. Spot Price and Pricing of Gold

• Claim: The spot price is the live market price of gold per troy ounce, denominated in USD.
• Verification: World Gold Council (WGC) and Kitco Metals confirm that gold’s spot price is measured per troy ounce in USD. BullionVault shows real-time gold pricing, proving that prices fluctuate based on supply and demand.
• Conclusion: Accurate. TD correctly defines the spot price mechanism.

7. Selling Gold Bullion to TD

• Claim: TD Canada Trust allows clients to sell their gold at any TD branch based on live market pricing.
• Verification: Kitco Metals confirms that banks like TD and RBC allow bullion sales based on current spot prices. Royal Canadian Mint (RCM) states that banks can act as authorized dealers for selling and repurchasing bullion. BullionVault & CAFC warn that some dealers impose hidden fees, but TD’s transparent pricing model aligns with industry standards.
• Conclusion: Accurate. TD’s claim that clients can sell gold at branch locations aligns with how major banks handle bullion sales.

Step 3: Final Accuracy Assessment

After verifying each claim against reputable sources, the final assessment is:

After putting ChatGPT to the test, I found that its fact-checking was impressively accurate. Every key claim in TD’s Gold Bullion Guide, from gold purity standards to storage options and spot pricing, aligned with reputable sources like the World Gold Council, the Royal Canadian Mint, and LBMA. Cross-referencing against industry benchmarks confirmed that the guide provided factually sound information.

This experiment reinforced how AI can serve as a valuable research tool, not just for verification but for enhancing the efficiency of fact-checking processes. And, perhaps most importantly, it proved that I was not hallucinating when gathering facts the first time around.