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Bkeepr100 (< 20)

Fake 400 troy oz Gold bars found...from central bank transfer to Hong Kong.

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November 14, 2009 – Comments (7) | RELATED TICKERS: GLD

There are now reports of fake 400 oz gold bars in Oct. of this year.  The report from Hong Kong said that the bars were gutted and had tungsten inside instead.  The finger was first pointed at the Chinese for making the fake bars.  The Chinese have pointed the finger at the Clinton Administration for the problem. Saying that they gold plated tungsten blanks and sold them on the open market.  Many of these fake bars might possible be in the GLD ETF holdings!  Nice way to hide them!!

 

From the GLD Prospectus on page 11:

 

"Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss."

 

 Tungsten is almost the same density and weight as gold at about $10 a lb.  This would make the fraud almost undetectable without an lab assay of the bar(s) in question.

The report says that possibilly up to 60 metric tons of 400 tr oz gold bars may be gold plated tungsten instead. There are betweeen 5,600 to 5,700 of the fakes 400 oz bars out there.

 

Buyer Beware!

 

Read more about it at Goldseek.com

 

 http://news.goldseek.com/GoldSeek/1258049769.php    "Doing God's Work"

 

 Bolded emphasis is my doing.

7 Comments – Post Your Own

#1) On November 14, 2009 at 10:19 PM, Wh1sp (99.99) wrote:

short gld in pre market trading for a house in the hamptons

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#2) On November 14, 2009 at 11:11 PM, jesusfreakinco (28.15) wrote:

We'll see how this effects the market.  I think the jig is up on GLD. 

I am sure you saw this article: http://www.bloomberg.com/apps/news?pid=20601103&sid=aydy.U01wYx8

First of many to bail on GLD and buy the miners instead.

JFC

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#3) On November 14, 2009 at 11:28 PM, Bkeepr100 (< 20) wrote:

I sold all my GLD holdings, when the reports hit that GLD and SLV ETF's might not have the physical metal to cover all the shares sold on the market. So I have no ETF holdings right now and won't till they come clean on this matter...

Now this news hits...big, big time bullish news in the middle of a bull market for Gold and PM's.

 

Pure tungsten metal cracks when struck with a blow by a hammer, the latest twist on fake bars is using powdered tungsten with an epoxy binder, then gold plating the fake. This has not trickled down to the smaller bars and coins yet, that I know of...

 Long on the minor miners and explorers, not in on the ETF's...

B-man Rick

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#4) On November 15, 2009 at 9:38 AM, YASUREBILL (< 20) wrote:

Should help the miners with real gold and silver.

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#5) On November 15, 2009 at 8:55 PM, caterpillar10 wrote:

Can't get the theme from Goldfinger out of my head since reading this last nite......might be time for a remake/update of that tale. Score of the century...but which one? 

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#6) On November 17, 2009 at 5:43 AM, tomatoflu (< 20) wrote:

Here are a few links.

i was onto this about 8 months ago, but more recently after posting similar material again my account has been banned by Google Finance.....For whatever reason........The racist blogs are fine there, and are prospering.........It would seem......Hmm......who knows??

 

Here are my recent blogs there before i got banned for posting a Max Keiser link.....About Tungsten.

The famous China reproduction gold site...

My Tungsten rant.

Another rant

Some more.

However, the idea of issuing more than one gold certificate for the same bar of bullion is the most popular i think in my limited knowledge....

Some excellent articles about this if you look.........heres one.

More than one gold certificate for the same gold bullion.

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#7) On December 17, 2009 at 6:30 PM, mountboney (< 20) wrote:

You forgot to do the math before trying to get everyone worked up.

5700 bars at 400 ounces is 2.28 million ounces.  At $1100 per ounce that would be $2.5 billion dollars worth of fake gold bars. Even if it was true that's a drop in the bucket in the world gold supply.

Now GLD holds $40 billion in gold, so if you assume every one of these fake bars found their way into GLD vaults then that's just 6% fake.

A good conspiracy story needs a little more umph than that!

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