china gold reserves fake
The bar's purity test, known as an "assay", had failed to meet SGE's strict standards for silver, but was still above the crucial 99.99 per cent purity. In retrospect, it probably meant "copper" future, because as a an 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. But, these loans are secured by state-owned insurance companies and ultimately the shares of the shadow banks, insurance companies, and the company itself are going to tank. The major Western countries hold upwards of 60 percent of their foreign exchange reserves in gold. Estimated Total Gold Reserves China 20,000 Tonnes. The gold shipment serial numbers revealed that these fake bars were made by the Federal Reserve bankers during the Clinton administration. Biggest gold scandal busted in China: 83 tons of gold bars used as loan collateral turned out to be copper. Which simply means that more layers of this scam could be unearthed. Shanghai Gold Exchange alleged two bars contained too much silver and were non-compliant with its specifications. They took deliberate actions to ensure this didn't get out.". Earlier, Kingold was a gold factory in Hubei affiliated with the People's Bank of China that was split during the restructuring of the bank. See here for a complete list of exchanges and delays. M.R. The loans were covered by 30 billion yuan of property insurance policies issued by Chinese insurer PICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers, it said. They are required to keep these records. 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. Anything that has even the chance of being iffy they are not going to be involved in, said Alexander, the analyst at GFMS Refinitiv. Because gold is completely fungible, Hayes said, you can bleed it into genuine production. A bar of steel the same size would weigh only thirteen and a half pounds. One, when China began to build cities to help people shift to them and millions of houses were constructed. 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. If you ever wanted to be the top crime boss, Secretary of State is the job you will need to watch over your crime syndicate. The investigation made clear just how much was on the line if the SGE went public. As early as in 2019, the self-regulatory body Shanghai Gold Exchange promptly removed Kingold from its membership list. It would test right chemically. 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. 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. Why not. Would you take this as an opportunity to start a discussion or a chat fight may be. The refineries are responding to the problem with technology. The 83 tonnes of gold make up near 22 per cent of Chinas annual gold production and 4 per cent of the countrys reserve, leading to suspicion on the quantity of fake gold in circulation in that country. With China facing a slew of problems arising from the novel Coronavirus pandemic and other issues such as border dispute and Hong Kong unrest, the gold scam has come at a wrong time. 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. 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. In a separate release Friday, China reported its foreign-exchange reserves. 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. Its also radioactive, which could be a bit of an issue. 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. These tested gold bars originated in the US and had been stored in Fort Knox for years. 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. It only tells the world what it wants to. He suggests that much of those holdings are not declared as monetary reserves. Natural gold reserves in China Global physical gold bar investment volume 2009-2018 Value of physical gold bar investment in North America 2008-2018, by country To its shock, Dongguan Trust said it discovered that the gleaming gold bars were actually gilded copper alloy. 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. As the report continues, in late 2019 Kingold failed to repay investors in several trust products. "I think it can be described as a cover-up, because [the mint] had a choice to disclose all the information, and in fact chose not to," she says. Explore more under this category. Its shares are listed on the Nasdaq stock exchange in New York (although its current market cap of just $10MM is a far cry from its all time highs hit when the company IPOed on the Nasdaq around 2010) . Even for us it is hard to tell, said a Swiss refinery executive who spoke on condition of anonymity. Russia is currently at 20%. HOME Politics Trending About 4% of Chinas gold reserves are fake: The biggest Gold scandal in recent history hits China. Following Dongguan Trust, China Minsheng Trust, one of Kingold's biggest creditors, obtained a court order to test collateral before Kingold's debts came due. Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts. This further makes things hard for Chinese firms to list in the US stock market. Its the only investment tool that goes from institutional investors like banks to the public and back again, said an executive at a Swiss refinery. This service may include material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service which is copyright and cannot be reproduced. Fake-branded bars are a relatively new way to flout global measures to block conflict minerals and prevent money-laundering. An alert China Mingsheng Trust Co. Ltd, which lent 600 million yuan as late as May last year, then got a court order to test the gold bars pledged with it as collateral as the gold companys interest payments were due. China is at the centre of the discovery of what may be one of the biggest gold counterfeiting scandal in recent history. In the last three years, bars worth at least $50 million stamped with Swiss refinery logos, but not actually produced by those facilities, have been identified by all four of Switzerlands leading gold refiners and found in the vaults of JPMorgan Chase & Co., one of the major banks at the heart of the market in bullion, said senior executives at gold refineries, banks and other industry sources. China has relied on counterfeiting, conservatism, and unfair practices to achieve the superpower status of the world. However, Kingold chairman Jia Zhihong, a former Peoples Liberation Army veteran, who is known for using his links to PLA and the Communist Party to overpass regulations and proper audit, denied any wrongdoing. Financing a recall of this scale would also be difficult for the mint and would likely require support from WA taxpayers. And this assume that no other Chinese gold producers and jewelry makers are engaging in similar fraud, the report said. In parts of Southeast Asia, its not uncommon for individuals to use gold instead of cash for big purchases such as real estate, bankers and analysts said. In short, more than 4 per cent of China's official gold reserves may be fake. China has grown leaps and bounds in the past few decades as a manufacturing hub of the world. According to a report in Zero Hedge, not only does it involve China, but it emerges from a city that has become synonymous for all that is scandalous about China: Wuhan. Copyright2023 Living Media India Limited. Avoid Gold Coins from China. Frankly, the day-to-day risk of buying fake gold from a Big 5 Canadian Bank is low. Fearing a major blow to its reputation, an internal investigation was ordered on the same day the complaint was received. And you thought Richard Nixon was criminal. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder. Feb 4, 2022. Switzerlands Attorney General said its office was not concerned with the topic at present. Like the security features on banknotes, these display different features when viewed under certain light or through filters. In order to secure loans from lenders, Kingold offered 83 tonnes of gold bars as collateral. Its very, very hard to control.. From the outset there were signs of trouble. 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. '," the insider says. When one of the lenders melted the gold bars, tungsten plate was found amidst them. Taking off: Boeing-GMR freighter conversion line can propel Indian firms up the aviation value chain, Choose your reason below and click on the Report button. Subramani is Executive Editor, Swarajya. At today's gold prices, buying back that amount of bullion would cost $8.7 billion. Atiq Ahmads Reign of Fear: What Samajwadi Party cannot escape the blame, Mughals and Madrasas: Himanta hits fresh on Congress, The Price of Desperation: The Impact of Illegal Immigration on India, Modi wont get the Nobel, it is the other way around, Domestic wheels will drive reforms in Indian railways, A Delicate Balance: Dibang Multipurpose Dam Project and Its Impacts, Breaking the Stereotypes: Modis Underrated Ace Man Shaktikanta Das on the Rise, Indonesia Extends Olive Branch to India with PTA Invitation, Indias Potent Mini Missile: The Indigenous S-400, Indias PALM-400 Drones: The High-Tech Answer to Pakistans Low-Tech Terrorism, With rising tensions in East Asia, Indian defence budgets need a serious rejig, Pakistan civil war is on the horizon, faster than we anticipated. The Shanghai Gold Exchange, which regulates Chinas gold market, said in a statement it was not aware of counterfeit bars being made in or transported through China. 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