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China's Biggest Gold Scandal: 4% Of Reserves Possibly Fake

Gold Scandal

EDITOR NOTE: Is it conceivable that Kingold--one of China’s largest gold companies--is backing 4% of the country’s gold reserves with fake gilded copper alloy? Sadly, yes. The New York Times reported yesterday that Kingold’s Nasdaq shares fell by as much as 40.2% once news broke that the company had obtained loans worth 20 billion yuan ($2.83 billion) using 83 tons of fake gold bars. China seems to be a hub for pirated and counterfeit products. Is it possible that Kingold is not the only company in China producing fake gold? If so, and once discovered, how might its reduction from the gold supply affect prices?

China is at the centre of the discovery of what may be one of the biggest gold counterfeiting scandal in recent history.

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.

The 83 tons of purportedly pure gold stored in creditors' coffers by Kingold as of June, backing the 16 billion yuan of loans, would be equivalent to 22 per cent of China's annual gold produc ..

Read more at Economic Times




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