Actually when it comes to a GIC charge (Goods in Custody) suspected of being stolen or unlawfully obtained, it's one of the few charges that the onus is on the defense to prove their innocence rather than the prosecution proving the guilt. At least in NSW anyway.
Well yes, whilst the defense needs to justify his/her position (not unlike self defence) it's not technically true that the onus is on the defense to prove his/her innocence. For a court to convict on a Goods in custody charge, the presiding magistrate must be satisfied that he/she reasonably suspects the goods to have been obtained unlawfully. The suspicion must also be attached to the goods not the person and the arresting officers opinion is irrelevant the opinion of the court at the time of the hearing is what that suspicion is based on.
"The suspicion must be reasonably held. It must not be determined by the subjective beliefs of the police at the time but according to an objective criterion determined by the Court before whom the accused stands charged."
For the court to conclude there is reasonable suspicion the goods were illegally obtained that conclusion must contain some probative value. The defendant having form (previous convictions of GIC) is sufficient to satisfy the search without warrant test but not the GIC charges.
It is incorrect to say that once the prosecution has established a prima facie case in matter of goods in custody the onus of proof shifts to the defendant in some way. This misapprehension is a common mistake amongst magistrates, prosecutors, and defence practitioners and is borne of a misreading of subsection (2) and its role in the legislative scheme of s.527C. The common misapprehension referred to above is the very same as the error made by Herron DCJ at first instance in Anderson v Judges of the District Court (1992) 27 NSWLR 201. Similarly the ACT Supreme Court in Fong v Ranse [1999] ACTSC 125 Miles CJ at [16].
The onus in on the prosecution in any criminal proceedings. This is no different in a matter of Goods in Custody.
Like someone else said, not enough information here but either the guy gave the police reason to suspect the bullion was illegally obtained. ie the guy was being evasive about the circumstances of why he had it or where he got it from, or the police officers were incompetent (which isn't unlikely) but if he just purchased it he would be able to substantiate the purchase, receipts or notthere is more to this case that meets the eye.