83 Tons of Fake Gold Bars Backing $3 Billion Loans in China
by Kevin Helms
The gold industry was shaken when it was discovered that 83 tons of fake gold bars were used to back loans worth 20 billion yuan in China. While Chinese authorities have not said whether the real gold exists or where it is, an insider claims to know what happened.
The Mystery Behind the Chinese Scandal Involving 83 Tons of Fake Gold Bars
One of China’s largest gold jewelry manufacturers, Kingold Jewelry Inc., was caught in a major fake gold scandal earlier this year. The company used 83 tons of gold bars to back loans worth 20 billion yuan ($3 billion) from 14 Chinese financial institutions. This amount of gold would be equivalent to about 22% of China’s annual gold production. However, the media reported in July that the gold bars turned out to be fake and were just gilded copper alloy, but the company and its executives denied any wrongdoing.
Kingold Jewelry is a Nasdaq-listed company headquartered in Wuhan, China. Its share price plunged 88% since the scandal surfaced to $0.1334 on Wednesday. The company announced in August its plan to voluntarily delist from Nasdaq.
While the Chinese authorities have not revealed where the real gold is or whether it even exists, one man claims to know what happened, NTD reported last week. Yizhi Wei told the publication that the real gold bars were swapped for fake ones and smuggled out of China into Hong Kong where they were sold below market prices. He claimed to be one of the middlemen. Read More.
