counterfeit gold bars

As for the gold, yes - several billion in gold bars never existed and yet resulted in a cascade of subsequent cash flow events allowing tens of billions in funds to be released, "benefiting" not only founder Jia, but China's broader economy. So, are they going to drill all their bars to tell the real ones from the PICC P&C faces multiple lawsuits filed by Kingold’s creditors demanding compensation. All Rights Reserved, This is a BETA experience. Before making any payments, I asked if there were any receipts to which they replied this would come in the post with the item and the only reason for the sale is because their partner lost their job … He is bold, reckless and eloquent, always making you feel he knows better than you.”. If the coin is lighter or heavier than its actual weight, it’s a red flag. In 2016, the Hubei provincial government announced a plan to sell Tri-Ring stakes to private investors as a major revamp of the Hubei government-controlled auto parts manufacturer. After obtaining the test results, Minsheng Trust executive said the company asked Jia whether the company fabricated the gold bars: “He flatly denied it and said it was because some of the gold the company acquired in early days had low purity,” the executive said. That should not be a real issue other than you will only get prices from dealers that have had a chance to inspect the coins. Following Dongguan Trust and Minsheng Trust, two other Kingold creditors also tested pledged gold bars and found they were fake, Caixin learned. “Without the insurance coverage from PICC P&C, (we) wouldn’t issue loans to Kingold as the collateral can only be tested through random picked samples,” one person told Caixin. And China, Brazil and Russia are expected to buy the rest of the gold offered by IMF PICC P&C said Liu’s removal was due to internal management issues. In early June, Minsheng Trust, Dongguan Trust and a smaller creditor Chang’An Trust filed lawsuits against Kingold and demanded that PICC P&C cover their losses. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars. The above photo shows a tungsten filled gold bar. Gold bars on the other hands are given as little exposure to human hands as possible PICC P&C declined to comment to Caixin on the matter but said the case is in judicial procedure. However, this 'buy and hold' strategy might not work anymore as the sub-prime crisis has shaken this belief in the long term investment mode. The fake gold came to light in February when Dongguan Trust (one of those infamous Chinese shadow banks) set out to liquidate Kingold collateral to cover defaulted debts. In that case, a lender seeking to melt gold collateral found black tungsten plate in the middle of the bars. Dealers can bid for your coins or bars sight unseen because they know that the chain of custody is unbroken. In short, more than 4% of China's official gold reserves may be fake. A Dongguan Trust investment document showed that Tri-Ring owns land blocks in Wuhan and Shenzhen that are worth nearly 40 billion yuan. That's why the pre 1964 coins are valued more. Copyright ©2009-2020 ZeroHedge.com/ABC Media, LTD, 83 Tons Of Fake Gold Bars: Gold Market Rocked By Massive China Counterfeiting Scandal, "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]". There was just one problem: the "gold" turned out to be gold-plated copper. Short-term investments are very bullish, erratic, unpredictable and undependable. "The Trust's gold may be subject to loss, damage, theft or restriction on access. " If the dealer sells you gold at or below spot, they either have hidden fees to make up for losses or are selling fake gold. On May 22, the test result returned saying the bars sealed in Minsheng Trust’s coffers are also copper alloy. Even better, if you need to sell it, you can do it within a few clicks on your computer. The fake gold came to light in February when Dongguan Trust (one of those infamous Chinese shadow banks) set out to liquidate Kingold collateral to cover defaulted debts. Something tells us option two will be far more palatable to China's kleptoculture where one domino cold trigger a collapse of the entire financial system. (it costs $50,000 to make a fake $400,000 gold bar because of the real gold coating and the labor). Over the years, we have periodically reported of the occasional gold bar discovered as counterfeit in Manhattan's Diamond District which instead of containing the yellow precious metal would be filled with gold-plated tungsten or in some cases copper. Get your 2nd Amendment Shirts over at Libertas Bella, Thank You For Taking Interest In Blacklisted News. It takes a lot of skill and machinery to produce the current third generation counterfeit coins and bars. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder. even in the event of fraud, to the market value of the gold at the time the fraud is discovered." The stock currently trades around $1 apiece, giving Kingold a market value of $12 million, down 70% from a year ago. Reputable dealers use a number of tests to ensure the bullion they purchase is not counterfeit. And with authorities investigating how this happened, Kingold chief Jia flatly denies that anything is wrong with the collateral his company put up. In the case of Kingold, the company said it took out loans against gold to supplement its cash holdings, support business operations and expand gold reserves, according to public records. In 2018, Kingold was selected as the investor in a deal worth 7 billion yuan. It is now safe to assume that most of that gold never existed. Hobbled by the Tri-Ring deal, which cost billions of yuan but has yet to make any return, Jia’s capital chain was eventually broken when Hengfeng Bank pushed for repayment, triggering a series of events that brought the fake gold to light, said a person close to the matter. Hobbled by the Tri-Ring deal, which cost billions of yuan but has yet to make any return, Jia’s capital chain was eventually broken when Hengfeng Bank pushed for repayment, triggering a series of events that brought the fake gold to light, said a person close to the matter. He is bold, reckless and eloquent, always making you feel he knows better than you.”. A source from PICC P&C told Caixin that the claim procedure should be initiated by Kingold as the insured party rather than financial institutions as beneficiaries. The second installment of 2.4 billion yuan was paid several months later with funds raised from Dongguan Trust. Sources from Minsheng Trust and Dongguan Trust confirmed that the collateral was examined by third-party testing institutions and strictly monitored by representatives from Kingold, lenders and insurers during the process of delivery. What will happen to investors billions if it turns out they hold fake gold? It's a large scale operation, indeed. But a financial industry source in Hubei said Jia’s business is not as solid as it may appear. And as Caixin adds, the loans were covered by 30 billion yuan of property insurance policies issued by state insurer PICC Property and Casualty and various other smaller insurers. The remaining also gold plated, but sold into the international market. But wait, counterfeiting gold is just the tip of the company's fraud iceberg: several industry sources told Caixin that the institutions were willing to offer loans to Kingold because Jia promised to help them dispose of bad loans. This accounts for the spot price, refining and minting premium, and transportation costs, plus dealer overhead and profit. And even more shocking, for years nobody checked the authenticity of the pledged collateral! Not that the Chinese have He once managed gold mines owned by the People’s Liberation Army, which means he likely has connections all the way to the very top. I hope this helps you make the right decision and invest in precious metals safely. As long as your bullion stays in the custody of LBMA-approved vendors and vaults, there is no question about the authenticity of your metals. A Dongguan Trust investment document showed that Tri-Ring owns land blocks in Wuhan and Shenzhen that are worth nearly 40 billion yuan. The second installment of 2.4 billion yuan was paid several months later with funds raised from Dongguan Trust. The news would spark a brief wave of outrage, prompting physical gold holders to run ultrasound spot checks of their inventory, at which point interest would wane and why not: buyer, after all, beware in gold as in every other market, and if someone is spending thousands to buy fake gold, well that's Darwinism in action. The best way to ensure the authenticity of gold products is buying gold bars and coins strictly from LBMA (the London Bullion Market) approved dealers, mints and refineries. What happens next: a panicked scramble to procure physical gold, one which even our friends at the BIS will be powerless to stop from sending the price of the precious metal to all time highs. But a PICC P&C spokesperson said the policies cover only collateral losses caused by accident, disasters, robbery and theft.

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