83 Tons Of Fake Gold Bars: Gold Market Rocked By Massive China Counterfeiting Scandal

I remember a few years ago there was another scandal about fake tungsten filled gold bars.. I guess they ran out of tungsten and decided to use copper this time around. All I can say is anyone doing business with mainland China better beware .

Yet one market which seemed stubbornly immune to any counterfeiting was that of physical gold in China, which was odd considering that over the past decade China had emerged as the world's biggest counterfeiter of various, mostly industrial metals used to secure bank loans, better known as "ghost collateral", and which adding insult to injury, would frequently be rehypothecated meaning often several banks would have claims to the same (fake) asset.

All that is about to change with the discovery of what may be one of the biggest gold counterfeiting scandal in recent history. And yes, not only does it involve China, but it emerges from a city that has become synonymous for all that is scandalous about China: Wuhan itself.

With that preamble in mind, we introduce readers to Wuhan Kingold Jewelry Inc., a company which as the name implies was founded and operates out of Wuhan, and which describes itself on its website as "A Company with a Golden future."

This is a long article that goes into much detail on this latest fake gold stuff and what effect it is having not just in China but other places as well.
www.zerohedge.com...

a reply to: 727Sky

With copper having about half the density of gold I wonder how they pulled it off. At least with tungsten it's pretty close.

Was no one weighing the bricks? Or was it that they never even saw the bricks? Or was it that they never really existed with the whole "ghost collateral" aspect?

Well color me surprised, how on Earth did we get to the point of having an empirical trust for such a monsterous regime.....
and I'm not referring to the Democrats.

a reply to: cmdrkeenkid


Geez... I Guess Gold Plated Lead is Passe These days ?

a reply to: 727Sky
I remeber the 911 disappearance of gold out of the gold vaults below the twin towers.

a reply to: Zanti Misfit

Same thing. Lead isn't too much more dense than copper.

originally posted by: cmdrkeenkid
a reply to: 727Sky

With copper having about half the density of gold I wonder how they pulled it off. At least with tungsten it's pretty close.

Was no one weighing the bricks? Or was it that they never even saw the bricks? Or was it that they never really existed with the whole "ghost collateral" aspect?

Well, THAT'S where all the copper is going, lol.

You can't trust China in any matter.

a reply to: StoutBroux

Wow what will this do to the price of Silver. Something was up every time they bashed it down it just came up again.

Oh the crafty bazzards.....

China...
You dog

I buy gold and silver from time to time. The only Chinese gold I have is 10- 1/10 ounce coins. They are pandas.

I just bought a 1927 St. Gaudens double Eagle in MS64 condition for $1875.00. I grabbed 100 Mercury dimes too for $135.00

a reply to: cmdrkeenkid

Why couldn't they weigh the same? They would only have to be larger bricks, sir.

Well played China, well played.

Thank god Nations are starting to see past the veil in regards to China and making a push back.

a reply to: drewlander


Well ,

Which has More Mass an Atom of Gold or Lead ?


Answer - The Lead Atom is Heavier, but it also Bigger. therefore the Density of Lead is Less than that of Gold .

originally posted by: Arnie123
Well played China, well played.

Thank god Nations are starting to see past the veil in regards to China and making a push back.

India bans TikTok and dozens of other Chinese apps citing security concerns

India has banned dozens of mobile apps with Chinese links in its strongest move yet targeting China in the online space since a border crisis erupted between the two countries this month.

India's technology ministry issued an order to ban 59 mostly Chinese apps, stating they were "prejudicial to sovereignty and integrity of India, defence of India, security of state and public order".

The list of banned apps includes social media and messaging platforms TikTok, WeChat and Weibo and the game Clash of Kings.

The ministry said it had mounting concerns about data security and safeguarding the privacy of 1.3 billion Indians. Following the order, Google and Apple will have to remove the banned apps from the Android and iOS stores.

This is a big deal for India as they have huge trade with China. Looks like they are finally cutting the cord too.
www.abc.net.au...

I hope this is another step towards the Chinese government and corporations getting what they deserve. In which I mean I hope they get crushed.

Remember a few years ago when they trotted out the Queen when rumours started traction that not all the gold was there...usually leased out

The Chinese learnt from that

China deserves everything that is coming at it in time. Not to be trusted and every nation should ban trade with it.

a reply to: drewlander

There are standards for gold bricks. Certain masses are certain sizes. One kg of gold will have a different size than one kg that's been cut with another material. If the weight or the dimensions are off standard, something is fishy.

a reply to: 727Sky

The companies that insured the gold to collateralize the loan should have caught it right away.

They had to be in on the scam, but are also on the hook for it. At the end of the day they insured the gold was sufficient to collateralize the loan. How could they do that without even checking the dimensions of the supposedly standardized gold bars.

As others have pointed out this was not a sophisticated scam and simple spot checks by any novice bullion collector should have caught the obvious deviations.

83 tons have been called into question. This is equal to about 4% of chinas official gold holdings. The ccp will have to make a public example of all involved, and the shadow banking sector will be screwed even worse than they have been with all the bogus rehypothication scams being used to collateralize massive loans to chinese zombie corps who never intend to pay the money back.

originally posted by: Village Idiot
Well color me surprised, how on Earth did we get to the point of having an empirical trust for such a monsterous regime.....
and I'm not referring to the Democrats.

3 posts in and American politics is brought into the subject

RIP ATS