As the specific weight from tungsten with 19.25 g/cm3 is close to gold with 19.284 g/cm3. Tungsten is a steel-gray metal found in shallow rectangular deposits. Well, apparently everything as at least some of 83 tons of gold bars used as loan collateral turned out to be nothing but gilded copper. It is now safe to assume that most of that gold never existed. ", Fake gold bars out of tungsten a counterfeit story, Today, companies like Chinatungsten use Tungsten in jewellery making and in memorial coins. The above photo shows a tungsten filled gold bar. It's all about printing fake money anyway. A person close to Jia said the surge of borrowing was partly due to Kingold’s pursuit of Tri-Ring. If Kingold and creditors were both aware of the fake collateral, insurers could terminate the policies and sue the parties for fraud. If the coin is lighter or heavier than its actual weight, it’s a red flag. PICC P&C’s Hubei branch provided coverage for most of Kingold’s loans, Caixin learned. 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. Elsewhere, early this year, another counterfeit story made rounds as some of the gold bars in the vaults of the National bank of Ethiopia were found to be gold plated steel. In retrospect, it probably meant "copper" future, because as a remarkable expose by Caixin has found, more than a dozen Chinese financial institutions, mainly trust companies (i.e., shadow banks) loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry with pure gold as collateral and insurance policies to cover any losses. The insurance policies provided by leading state-owned insurers like PICC P&C were a major factor defusing lenders’ risk concerns, several trust company sources said. It’s highly unlikely that a trustworthy dealer would offer you a counterfeit product, but knowing how to inspect gold bars or coins won’t hurt. 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.". Founded in 2002 by Jia, Kingold was previously a gold factory in Hubei affiliated with the People’s Bank of China that was split off from the central bank during a restructuring. The news sent shockwaves through Kingold’s creditors. 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. If Kingold faked the gold bars and both the insurers and creditors were unaware, the insurers should compensate the lenders and sue Kingold for insurance fraud, Wang said. 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. “He’s an imposing figure and speaks loudly. The Shanghai Gold Exchange, a gold industry self-regulatory organization, disqualified Kingold as a member as of last week. It appears that one way or another, the company realized that it could fabricate gold ownership and receive money in exchange for what were basically worthless copper bricks painted as gold; and thanks to Jia's military connections nobody would ask any other questions. In 2016, Kingold borrowed 11 billion yuan, nearly 16 times higher than the previous year’s figure. hold real gold and will likely collapse and with it the billions in retirement investment. And with authorities investigating how this happened, Kingold chief Jia flatly denies that anything is wrong with the collateral his company put up. Well then, on to the impact of counterfeit coins on gold trading: GLD ETF is the case in point. from IMF, to protect against the weakening dollar. 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. Hengfeng Bank is the only commercial bank involved in the Kingold affair. But, long term investments are, relatively, considered safe and reliable. 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. Public records showed that Kingold’s first gold-backed borrowing can be traced back to 2013, when it reached an agreement for 200 million yuan of loans from Chang’An Trust, with 1,000 kilograms of gold pledged. Tungsten has the same density (19.25g/cm3) as gold, so a fake bar is indistinguishable by weighing it. Before buying coins, look up their dimensions on an official mint site. 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. It would be very wise of you to study our disclaimer, our privacy policy and our (non)policy on conflicts / full disclosure. (fear of theft). And it's not clear what these investments in gold are, and they could be anything even remotely related to gold. Earlier this year, PICC P&C removed its Hubei branch party head and general manager Liu Fangming. It made news when the shipment of gold was returned by South Africa. Meanwhile, Kingold defaulted on 1.8 billion yuan of loans from Dongguan Trust with an additional 1.6 billion yuan due in July. 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.". 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. Even as stocks were losing their value, gold was marching steadily, increasing by five percent in US dollars. (Fort Knox , as you may be aware, is the United States Bullion Depository, where the official gold reserves of the federal government are stored. In retrospect, it probably meant "copper" future, because as a remarkable expose by Caixin has found, more than a dozen Chinese financial institutions, mainly trust companies (i.e., shadow banks) loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry with pure gold as collateral and insurance policies to cover any losses. I hope this helps you make the right decision and invest in precious metals safely. In a telephone interview with Caixin in early June, Jia denied that the gold pledged by his company was faked.
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