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The gold industry was shaken when it was discovered that 83 tons of fake gold bars were being used to secure 20 billion yuan worth of loans in China. While Chinese authorities have not said if the real gold exists or where it is, an insider claims to know what happened.
The mystery behind the Chinese scandal involving 83 tonnes of fake gold bars
One of China’s largest gold jewelry manufacturers, Kingold Jewelry Inc., was the victim of a major fake gold scandal earlier this year. The company used 83 tons of gold bars to support loans worth 20 billion yuan ($ 3 billion) from 14 Chinese financial institutions. This amount of gold is said to 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 fakes and were just a golden copper alloy, but the company and its executives denied any wrongdoing.
Kingold Jewelry is a Nasdaq listed company headquartered in Wuhan, China. Its stock price has plunged 88% since the scandal surfaced to $ 0.1334 on Wednesday. The company announced in August its intention to write off of the Nasdaq.
While Chinese authorities have not disclosed where the real gold is or even if it exists, man claims to know what happened, NTD reported Last week. Yizhi Wei told the publication that the real gold bars were traded for fake and smuggled from China to Hong Kong where they were sold below market prices. He claimed to be one of the intermediaries.
The publication described Wei as “a member of the so-called Red Aristocracy of China … the Manchu ethnic minority.” In addition, “his father was a top Communist official” and “his grandfather was a communist revolutionary who helped the regime to take power.”
Wei detailed, “Every day he arrived from the Chinese city of Shenzhen. We would buy it every day, 10 kilos, 20 kilos, 30 kilos. Then we will sell it in the afternoon on the same day. We made money from the price differences. We didn’t know where the gold came from.
It became certain that the gold bars he bought and sold were the same ones owned by Kingold Jewelry because the numbers printed on them matched the range of numbers allegedly printed on Kingold Jewelry gold bars. .
Wei added that almost all organized crime groups and triads in Hong Kong were involved in gold laundering. They were responsible for contacting buyers and transporting the gold. He noted that all of the gold buyers they found were big foreign investors, not Chinese. “This is because there is a problem with a person in China buying gold in large quantities, so they were looking for foreign buyers, those from the United States, Europe and Japan,” a- he explained to the media.
In addition, he believes that the people being investigated by the Chinese authorities into the fake gold scandal are just scapegoats because the scale of this operation is “not something but one or more. two people can do, “noting that the amount he got involved with” is just the tip of the iceberg. “
The gold bars were discovered as fake in February, but Chinese media and regulators remained silent until June, the publication said. Wei said, “Till this day, no one knows where the gold is. This is why I mean that the Chinese system has been rotten from its roots.
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