As tungsten is nearly identical in density to gold you could have a bar that is 50-50 Au/W and still make a huge profit. Heck even a 95/5 bar would be highly profitable.
The one question this brings up...most all of these housing projects that developed...are sitting empty and the re-sell value is dismal at this point. So you started with fake gold, bought into fake housing value, and what exactly do you have at this point? Nothing. The banks or investment companies who bought the fake gold...they are out as well, and probably don’t want to admit their problems at this point.
I use a company that markets coins based on the 70 point system and holds them in an armed and secured depository.
*** expose the type of sordid scandal that is at the heart of most Chinese “enterprises” and business ventures. ***
Lost me with “sordid” and the broad brush “most”.
“I don’t know, but I’ve been told
It’s hard to run with the weight of gold
Other hand I’ve heard it said
It’s just as hard with the weight of lead”
From the story:
As for the gold, yes - several billion in gold bars never existed and yet resulted in a cascade of subsequent cash flow events allowing tens of billions in funds to be released, "benefiting" not only founder Jia, but China's broader economy.
Which is, needless to say, terrifying: because whereas just after the financial crisis China was engaged in building ghost cities, everyone knew these were a symbol of demand that would never materialize, even if the cities themselves did exist.
...It now appears that a major part of China's subsequent economic boom has been predicated on tens of billions in hard assets - such as gold - which simply do not exist.
The upshot: Fake gold was to fund the creation of Ghost Cities where nobody lives!
i am ignorant but there is a registry number on the fake swiss gold bar in the photo. this should lead one to a conclusion that the auditors had knowledge of the fraud, but lied to their lender clients.
also the price of gold has been ascending since mid 2019. this might account for that rise, since at least my expectation is that a flush economy would cause such a large run on gold, stocks being normally preferred investments under such circumstances.
i hope this guy Jia Zhihong gets his just comeuppance, chinese commie style— hopefully on the business end of a scalpel, aiming for whatever harvestable organs he possesses, and without anaesthetic. broadcast on youtube in realtime.
Kingold’s shares are listed on the Nasdaq stock exchange in New York.
We need to get communist Chinese companies out of our financial system, at least those that are not audited to the same standards as our own companies.
How bad is fraud in communist China? Some examples from Zero Hedge’s article on just this one:
“In 2018, the company (Kingold) beat a number of competitors in bidding to buy a controlling stake in state-owned auto parts maker Tri-Ring Group... But Kingold has faced problems taking over Tri-Rings assets amid a series of corruption probes and disputes involving Tri-Ring.” (The Kingold fraudsters were duped by the Tri-Ring fraudsters, into buying a fraudulently valued company, with their fraudulent assets.)
“at the very bottom of the fraud we finally get to the one true and endless Chinese asset bubble: real estate. A Dongguan Trust investment document showed that Tri-Ring owns land blocks in Wuhan and Shenzhen that are worth nearly 40 billion yuan.” (real estate bubble pricing)
“How could it be fake if insurance companies agreed to cover it? he said and refused to comment further. Well, the answer is simple: the insurance companies were in on the scam” (major auditing firms in China have also been found to be routinely complicit in their client’s fraud schemes in the last couple of years)
Just based on Kingold’s demonstrated fraud “more than 4% of China’s official gold reserves may be fake. And this assume that no other Chinese gold producers and jewelry makers are engaging in similar fraud (spoiler alert: they are.)”
“over the past decade China had emerged as the world’s biggest counterfeiter of various, mostly industrial metals used to secure bank loans, better known as “ghost collateral”, and which adding insult to injury, would frequently be rehypothecated meaning often several banks would have claims to the same (fake) asset.” (not just metals, most (if not all) types of collateral are routinely counted on several different banks asset sheets, at the same time)
The communist Chinese financial system is a totally fraudulent house of cards.
Wonder how much of an impact, overall value wise, this is going to have on my old gold coins, which I have a considerable amount of. #feelsbadman ugh.
China? Fraud? Say it ain’t so,Joe!
That’s a LOT of gold. This story smells to me.
Waiting for the mainstream media report... “China invents new ways to make gold profitable; Trump envious”
Gold with lead or tungsten in it doesn’t “ring”, it has a dead sound, fyi.
Dheating is part of the Chinese business culture. They will win a contract with a high quality prototype and slowly begin to decrease the quality of the materials they use.
This is just another cheat.
What is going to happen when enough folks know about this and begin to doubt the value of ANY gold bar. Uh oh...
And the Clinton's..! Don't forget the Clinton's..