As per areportby Caixin, which is a Chinese media group based in Beijing known for investigative journalism, China is at the centre of the discovery of the biggest gold counterfeiting scandal in human history. FULFORD: April 4, 2022 Plug gets pulled on Khazarian mafia fraudulent financial system [FULL Report], What The Russian Central Bank Ruble-Gold Peg Means For Gold & Silver, IMF official warns Western sanctions on Russia are threatening the dollar as worlds reserve currency. Then their reserve would be full of tungsten plated gold bars. The Zero Hedge report said that this exposes just how multi-faceted fraud is in China: capitalizing on pre-existing cronyism and connections with China's powerful army, the founder of Kingold was allowed to basically do anything he wanted, no questions asked, including counterfeiting over 83 tons of gold bars to get billions in funds to participate in China's housing bubble, only for a series of unexpected events to unwind the frauds one after another and expose the type of sordid scandal that is at the heart of most Chinese "enterprises" and business ventures. In China, almost all exports of gold are banned as part of the countrys strict, longstanding controls on capital movements. Dec 7 (Reuters) - China's central bank said on Wednesday it had added 32 tonnes of gold worth around $1.8 billion to its reserves, the first time it has disclosed an increase since September. As per the report, the company used 83 tonnes of gold bars as collateral and insurance policies to cover any losses but many of them have turned out to be gilded copper. At the centre of the fraud is Wuhan Kingold Jewelry Inc., a company which as the name implies was founded and operates out of Wuhan, and which says it is a "A Company with a Golden future.". A spokeswoman for the Manhattan district attorneys office also declined comment.. . But in recent years the 124-year-old institution, officially known as Gold Corporation, has been plagued by a series of scandals. The historic Perth Mint is facing a potential $9 billion recall of gold bars after selling diluted or "doped" bullion to China and then covering it up, according to a leaked internal report. Your email address will not be published. Digital gold and Brics Bucks to one side, physical gold tokens are in the news too. "Potentially you'll get gold buyers in the market going, 'Can we trust anything coming out of the Perth Mint? India is spending on luxuries and shelving small purchases at the same time. The counterfeit gold is set to destroy whatever reputation the Chinese economy has in global audience. Considered to be one of the biggest gold counterfeiting scandals in recent history, the scam not only involves China, but it emerges from Wuhan city, the capital of Hubei Province, that has become synonymous for all that is scandalous about the country. Time to catch up quickly. Many of them reference a single, unverified report in 2009 that the Chinese received a fake shipment gold . China gold reserves At the end of January 2020, China's official gold reserves (as reported to the IMF) stood at 62.64 million ounces - just under 1,950 tonnes. The company used 83 tons of gold bars to back loans worth 20 billion yuan ($3 billion) from 14 Chinese financial institutions. Kilobars are small - around the size and thickness of a cellphone - unlike the roughly 12.5-kilo gold ingots typically stored in the vaults of the worlds central banks. But, controversies never left China, and the world was always thinking just one thing whats going on? Besides thinking, the world couldnt do anything because China doesnt release its data publicly. India has also entered into the list of top ten countries with gold reserves of 642 tonnes, which is ninth highest in the world. China Central Bank Heeds Xi Call to Fight US 'Containment'. Meanwhile, China reduced its. But once they found it, they knew what they were doing. Furthermore, gold conspiracies suggesting that tungsten filled bars line the the US Federal Reserve are difficult to prove. Short URL: http://presscore.ca/2011/?p=2780, UPDATE: TO FOURWINDS READERS January 13 2023, ~~~THE CHRISTMAS STORY by Patrick H. Bellringer~~~ 2022, NEW] PART10a: MESSAGE FROM CREATOR GOD ATON OF LIGHT-~~~FOR THOSE WHO SEE THE LIGHT~~~DECEMBER 21, 2022, [NEW] PART 9a: MESSAGE FROM GYEORGOS CERES HATONN COMMANDER IN CHIEF~~~MESSAGE TO ALL SOULS AND LIGHTWORKERS~~~LET THERE BE LIGHT AND GOD CREATED~~~DECEMBER 20., 2022, Send Page To a Friend WikiLeaks: Egypts New Man at the Top 'Was Against Reform', ANOTHER HIDDEN SECRET IN OBAMACARE 'RFID CHIP IMPLANTS', The gold shipment contained a tungsten core with a thin coating of real gold. Bollywood Music in the Digital Age: Where Has the Magic Gone? This is equivalent to 22 percent of Chinas annual gold production or 4.2 percent of Chinas gold reserves as of 2019. The gold scam now raises doubt over how the lenders of the remaining 16 billion yuan (Rs 16,970 crore) would recover their dues. The recent Gold fraud has answered this question to some extent. There was just one problem: the "gold" turned out to be gold-plated copper. Gold doping is a somewhat accepted practice in the industry and is not illegal, but is high risk for refiners, as it lowers the quality of bullion by adding impurities like silver or copper. Fast forward to today when while . Given all this, it is needless to say that gold reserves are quite essential, and goof up in maintaining them can have national level repercussions. When others who store and trade such gold found forged bars, they returned them to the refiner concerned, some of whom have operations in Asia. But, when the shadow banks claimed the pure gold after the company was unable to pay back, they found that what the company claimed as pure gold is actually not gold. HSBC declined to comment in detail but a spokesman said it only bought bars directly from a small group of refiners accredited, like the Swiss, by the London Bullion Market Association (LBMA). Who was the script writer for Rahul Gandhis Cambridge University ranting. High gold prices have triggered a boom in informal and illegal mining since the mid-2000s. China increased its gold reserves for the first time since September 2019 in November, with increased purchases expected amid Beijing's diversification efforts and international financial market . Dear Liberals your Beef Parties are not protests, they just intend to displease the Majority, Social Media is divided over Swati Maliwals allegation, Harish Salve bluntly puts out Hindenburgs leech agenda, Electrifying Phenomenon: Exploring the Static Shock Experience in Bengaluru. Metalor this year began to put spots of tamper-proof ink on its bars. The authorities are apparently still investigating. The Luckin Coffee fraud, which hit American investors, has fuelled the recent resentment against Chinese companies, and before it cooled off, another big fraud in a Chinese company listed at an American stock exchange is unveiled. The refineries are responding to the problem with technology. Its a wonderful way of laundering conflict gold, he said. It would have a dead ring when knocked as gold should. The US leads the country list with total gold reserves of 8,134 tonnes followed by Germany and Italy with 3,364 tonnes and 2,452 tonnes, respectively. Jia has also been smart in getting loans from agencies that are outside of Hubei province with Mingshen Trust coming off as the worst hit. The . According to multiple industry reports published this week, the Wuhan-based, NASDAQ-listed Kingold Jewelry issued 83 tonnes of alleged gold -- valued at $4.2 billion and the equivalent to 22. However, the gold firm initially paid 2.8 billion yuan as the first instalment soon after winning the bid and by December 2018, the takeover was completed. Its value reached over 113 billion U.S. dollars. Argor said its bars had various security features, but declined to elaborate for security reasons. In total, Kingold pledge tens of thousands of kilograms of gold to no less than 14 creditors amounting to just under 20 billion yuan, the Zero Hedge report said. The People's Bank of . Subscribe here. 2, 2004 indicated that the Clinton Gold Heist was being investigated by US officials. Kingold had availed of loans from lenders such as China Minsheng Trust, Hengfeng Bank, Dongguan Trust and Bank of Zhangjiakou, all part of the Chinese shadow banking system, an alternative source of funding for financially weak firms. The lenders allege that it was the insurance firms involvement that helped Kingold to sign the gold-backed loan deals.Insurance policies provided by PICCPC was a major factor in allaying their fears over providing such huge loans to the jewellery company. However, China's official gold reserves stand at 1,948.3 tons, constituting 3.2% of its foreign reserves. It was during the Bill and Hillary Clinton presidency that the bankers of the Federal Reserve manufactured between 1.3 and 1.5 million 400 oz tungsten blanks. When Perth Mint went back and checked the two gold bars at the centre of the customer complaint it found one had been "red flagged" by its refinery. In 2021, the gold reserves of China's monetary authority, the People's Bank of China, amounted to 62.64 million ounces. ", "If they've traded bars through the SGE that are non-compliant, they'd lose their accreditation.". This is roughly equal to 22% of Chinas annual gold production and, as told earlier, about 4% of its gold reserves. The longer-term damage to the mint's reputation stands to be far greater. Richard Hayes, chief executive of the Perth Mint in Australia, one of the worlds largest refiners, said his company had not encountered fraudulently branded Perth Mint kilobars. The gold shipment contained a tungsten core with a thin coating of real gold. But the gold in them could have been melted and re-melted after being mined anywhere. But refiners say the forgeries are becoming increasingly sophisticated, so the problem may have grown. Gold market spooked by massive counterfeiting scandal, The scam came to light in February this year when Kingold defaulted on loans to Dongguan Trust Co. Ltd, Posted by: Chitranjan kumar, Jun 30, 2020, 6:07 PM IST, Consumer spending dips from Rs 12,000 to Rs 3,600 per credit card; gold loans see uptick, Gold ETFs attract Rs 815 crore inflows in May. No one is going to interfere or question the actions or activities of the Secretary of States of the United States. My estimate would make China the second largest gold reserve country after the US. Kingold, one of the largest gold mining companies in China, had deposited 83 tons of fake Gold. 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He was instrumental in getting the loans from the trusts, promising them that in return, he would help them get rid of their problems bad loans. (Bloomberg) -- China's central bank echoed President Xi Jinping's warning that the US is . And it still exists, and it still works.. Chinese government insurance firm PICC Property and Casualty Co Ltd (PICCPC) and a couple of other small insurance companies had covered for these loans that Kingold availed of. When the Chinese media company contacted him, he wondered: How can it be fake if insurance companies agreed to cover the loans?He refused to comment further. Copyright 2023 Bennett, Coleman & Co. Ltd. All rights reserved. In short, more than 4% of China's official gold reserves may be fake. But, the actual effect of the same will only be visible in the near future for which well have to wait and watch. When one of the lenders melted the gold bars, tungsten plate was found amidst them. The news sent shockwaves through Kingold's creditors. The gold deposited by this company as collateral with the financial . According to Trading Economics, China ranks sixth in terms of total gold reserves with total reserves of 1,948.30 tonnes as on March 31, 2020. Swiss Customs said 655 forged bars were reported in 2017 and 2018 to local prosecutors in Ticino, a region bordering Italy that contains three of Switzerlands four large refineries. They are required to keep these records. Its economy has progressed so much that it was directly competing with the US as a superpower in the world. In short, more than 4 per cent of China's official gold reserves may be fake. You need to login to continue. That is a small share of output from the gold industry, which produces roughly 2 million to 2.5 million such bars each year. We know the PBOC doesn't buy gold though the SGE, but prior to 2007, the Chinese gold market wasn't . The process for gold (material) to enter the warehouse is strictly managed and in compliance with the regulations, it said. With China now holding the most gold reserves of any nation, it is almost certain that in any future international monetary negotiations, the Chinese government will be "making the rules.". Meanwhile, China only has about 1 percent of its reserves in gold. This amount of gold would be equivalent to about 22% of China's annual gold production. While the gold remained above broader industry standards, the report estimated up to 100 tonnes of gold sent to Shanghai Gold Exchange (SGE) potentially did not comply with Shanghai's strict purity standards for silver content. Kilobars are the most common form of gold in circulation around the world, passing fluidly between banks, refineries, dealers and individuals. The LBMA, which accredits global refineries to vouch for the quality of their output, is drawing up standards for security features. Experience Your Economic Times Newspaper, The Digital Way! Shaktikanta Das: How did he win the "Governor of the Year" award? click here! Word of the forged bars began to circulate quietly in gold industry circles after the first half of 2017, when J.P. Morgan, one of five banks which finalize trades in the $10 trillion-a-year London gold market, found that its vaults contained at least two gold kilobars stamped with the same identification number, 10 people familiar with the matter told Reuters. HOME Politics Trending About 4% of Chinas gold reserves are fake: The biggest Gold scandal in recent history hits China. But most of the refiners security features have only been introduced recently, and no database is planned until 2020 at the earliest. PAMP and Valcambi perform a microsurface scan of their bars and supply machines or phone apps that can scan each one and verify whether their surfaces match the refinerys records. The scam was grotesquely high on magnitude. We showed you ours, now you show us yours (opinions ). Listed on Nasdaq stock exchange, Kingold Jewelry is one of the world's largest privately owned gold processor with a current market cap of just $8 million. China reported an increase in its gold reserves for the first time in more than three years, shedding some light on the identity of the mystery buyers in the bullion market. It is demanding 1.3 billion yuan (Rs 1,380 crore) from PICCPC against a default of 1.8 billion yuan (Rs 1,900 crore) by Kingold. "Chinese Central Bank gold . 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 report in Zero Hedge said. Smuggle gold and other contraband in and out of the United States using diplomatic immune aircraft. The company's shares are listed on the Nasdaq stock exchange. As Kitco reported before, China is the top gold producer with 370 tonnes of the yellow metal mined in 2021. When the Hubei-based firm defaulted, the lenders tried to encash the gold offered as collateral only to find them to be gilded copper. A Reset that Serves the People Instead of buying into the World Economic Forums feudalistic technocracy. Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. These tested gold bars originated in the US and had been stored in Fort Knox for years. And it would weigh *exactly* the same as a real gold bar. Possibly dying': Sam Neill's blood-cancer diagnosis revealed in memoir, It's unclear if central banks can contain the international banking crisis, analysts warn, Wyoming governor signs law outlawing use of abortion pills, A former bikie walked into a government-owned mint to buy gold. 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