The gold industry was shaken when it was discovered that 83 tons of fake gold bars were being used to support 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., participated in a big fake gold scandal at the start of this year.
The company used 83 tonnes of gold bullion to finance 20 billion yuan ($ 3 billion) in loans from 14 Chinese financial institutions. This amount of gold is said to be equivalent to about 22% of China’s annual gold production. However, media reported in July that the gold bars turned out to be fakes and were only a golden copper alloy, but the company and its executives denied any wrongdoing.
Kingold Jewelry is a Nasdaq listed company based in Wuhan, China. Its stock price has plunged 88% since the scandal rose to $ 0.1334 on Wednesday. The company announced in August its intention to Remove from the list
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While Chinese authorities have not disclosed where the real gold is or if it exists, a man claims to know what happened, NTD reported last week. Yizhi Wei told the publication that real gold bars are traded for fake and smuggled from China to Hong Kong, where they are sold for 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 explained, “Every day, I arrived from the Chinese city of Shenzhen. We were going to buy it every day, 10 kilos, 20 kilos, 30 kilos. Then we will sell it in the afternoon of the same day. We make money from the price differences. We didn’t know where the gold came from.
He made sure that the gold bars he bought and sold were the same ones that belonged to Kingold Jewelry, as the numbers printed on them matched the range of numbers supposedly printed on Kingold’s gold bars. Jewelry.
Wei added that almost all organized crime groups and triads in Hong Kong were involved in gold panning. They were responsible for contacting buyers and transporting the gold. He noted that all of the gold buyers he met were large foreign investors, not Chinese. “This is because there is a problem with a person in China who buys 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 those investigated by the Chinese authorities for the fake gold scandal are just scapegoats, because the scale of this operation “is not something that one or two people can do. “, noting that the amount involved” is just the tip of the iceberg. “
Gold bars were found to be fake in February, but Chinese media and regulators remained silent until June, the publication noted. Wei said, “To this day, no one knows where the gold is. So I mean the Chinese system has been rotten from its roots.