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. "It happened in the first place because of poor systems management and incompetence on the refining side. From the outset there were signs of trouble. And this is worrying. 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. Reuters approached five large banks that trade gold in Asia, several of which have vaulting facilities. 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 scam has brought memories of a similar scam in 2016 when gold bars offered as collateral to 19 Chinese lenders were found to be adulterated. 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. India is spending on luxuries and shelving small purchases at the same time. Why take the heat as president when you can travel the World using US tax dollars. The mint is the largest processor of newly mined gold in the world, one of Perth's top tourist attractions and well known for producing commemorative coins to mark everything from royal weddings to a new James Bond film. The US leads the country list with total. An Indian investor in Kingold living in the US has now gone to a New York court for violating securities laws. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchanges markets. and never miss an insightful take by the TFIPOST team. As the report continues, in late 2019 Kingold failed to repay investors in several trust products. Kingold is certainly not the only Chinese company engaging in such blatant fraud, and the consequences are clear: once Chinese creditors or insurance companies start testing the "collateral" they have received in exchange for tens of billions in loans and discover, to their "amazement", that instead of gold they are proud owners of tungsten or copper, they have two choices: reveal the fraud, risking tremendous adverse consequences and/or prison time, or quietly buy up all the gold needed to literally fill the void from years of gold counterfeiting. This further makes things hard for Chinese firms to list in the US stock market. Rajesh Gopinathan, the outgoing CEO of TCS, said he would continue to have a great relationship with Tata Sons Chairman N Chandrasekaran, irrespective of whether I am with the group or outside of it, in an emphatic dismissal of all speculation surrounding his unexpected resignation on Thursday. A spokeswoman for the Manhattan district attorneys office also declined comment.. Explore more under this category. He suggests that much of those holdings are not declared as monetary reserves. In comparison, Germany, France and Italy's official gold holdings represent between 60 - 70% of those countries' total reserve . The Chinese central bank, in a major economic recovery measure, announced that banks will be able to hold lesser reserves than before to keep . China has relied on counterfeiting, conservatism, and unfair practices to achieve the superpower status of the world. 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. Rings a bell? High gold prices have triggered a boom in informal and illegal mining since the mid-2000s. HOME Politics Trending About 4% of Chinas gold reserves are fake: The biggest Gold scandal in recent history hits China. Be the first to be informed of any investigation into the manufacture and distribution of her fake gold and then immediately kill the investigation. 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. One of China's largest gold jewelry manufacturers, Kingold Jewelry Inc., has been using fake gold to secure loans obtained from 14 Chinese financial institutions, Caixin reported Monday. 640,000 of these tungsten blanks were gold plated and were shipped to Ft. Knox where they remain there to this day. 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. 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. 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. Its value reached over 113 billion U.S. dollars. By pirating Swiss and other major brands, metal that has been mined or processed in places that would not otherwise be legal or acceptable in the West for example in parts of Africa, Venezuela or North Korea can be injected into the market, channeling funds to criminals or regimes that are sanctioned. The stronger gold reserves mean a stronger value of the currency. We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn, and work. Get Swarajya in your inbox everyday. 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The company was alleged to have used 83 tonnes of fake gold bars, or gilded copper, as collateral to secure 20 billion yuan (US$2.83 billion) of loans from onshore lenders, Caixin reported on. 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. 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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% of China's annual gold production and 4.2% of the state gold reserve as of 2019. TFI - English from the house of 'The Frustrated Indian' - India's most loved social media brand is global politics through India's lenses. The latest fake bars are highly professionally done, said Michael Mesaric, the chief executive of refinery Valcambi. They are required to keep these records. Kingold, one of the largest gold mining companies in China, had deposited 83 tons of fake Gold. Your email address will not be published. Swarajya is a publication by Kovai Media Private Limited.Swarajya - a big tent for liberal right of centre discourse that reaches out, engages and caters to the new India. The gold deposited by this company as collateral with the financial . The People's Bank of China raised its holdings by 30 tons in December, according to data on its website on Saturday. On 21 May this year, the US Senate passed a Bill to delist Chinese firms from exchanges as they are not following the standards for US audits and regulations. But, the actual effect of the same will only be visible in the near future for which well have to wait and watch. Sometimes, this question struck my mind hard that whatever China shows off, is it completely real or theres a catch to it? "If SGE Gold Corporation's pre-eminent exchange client had made public that they had issues with Gold Corporation bars the impact of negative public statements on the business could be very significant," the internal report said. Dongguan Trust said it found that the gold bars that were pledged as collateral turned out to be gilded copper alloy. We know the PBOC doesn't buy gold though the SGE, but prior to 2007, the Chinese gold market wasn't . Then sell this fake gold to everyone at a cheaper price than what the US government was buying gold from people. Established 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 restructuring. J.P. Morgan did not comment. These tested gold bars originated in the US and had been stored in Fort Knox for years. China has been the world's largest gold producer since 2007, producing about 15% of all the gold mined in the world. The scam has brought to focus Kingolds 59-year-old Chairman Jia, who has served in the rear supply service department of the PLA in Guangzhou and Wuhan. 2009-2023 Independent News Service, All Rights Reserved. The country's forex reserves fell by USD 2.39 billion to a three-month low of USD 560.003 billion for the week to March 10, the Reserve Bank said in its latest weekly data release.In the week. Today Fort Knox still holds these Clinton Fake Gold Bars and even today they are being shipped around the World as gold exchanges between countries to pay debts and to settle the so-called balance of trade. Japan also has a long-established problem of gold smuggling in which the forged brands could be put to use, refinery executives said. During 2019, its reserves grew by 95.8 tons. China Minsheng Trust - another shadow banking company and one of Kingold's largest creditors - obtained a court order to test collateral before Kingold's debts came due. The gold shipment serial numbers revealed that these fake bars were made by the Federal Reserve bankers during the Clinton . But in April 2009, China did admit to having added 454 tonnes, or a 76% increase, to its reserves since 2003. 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 fraud came to light in February this year when Dongguan Trust found the gold pledged as collateral to be fake after Kingold had defaulted since late last year. 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. Without the stamp of a prestigious refinery, such gold would be forced into underground networks, or priced at a discount. These precise records would show the lineage of all the physical gold settled on the exchange and hence prove that the amount of gold in question could not have possibly come from the U.S. mining operations because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production. Pack up and get out of there, Japan to spend $2.2 billion to get Japanese companies to exit China, The man who bullied the Bully How Ajay Devgn made Karan Johars monopoly a joke and forced him to apologize, Our survival is at stake now, Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports, T-Series forced to take down Atif Aslams video, Divya Khosla trolled. There are very few metals that are as dense as gold, and with only two exceptions they all cost as much or more than gold. In 2017, Valcambis Mesaric said, hundreds of bars were found stamped with the same identification number. 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