Are you serious !! The Gold prank IN CHINA, It is known that in China, they can fake anything from branded clothing to … the moon. But some forgeries, produced by craftsmen from the Middle Kingdom, are simply unbelievable.
In February 2020, 83 tons of fake gold were found in the country, which one of China’s precious metals processing companies successfully put into circulation.
Caixin, a Chinese news agency, reported that Wuhan Kingold Jewelry, a private gold smelting company in Hubei, received loans total 20 billion yuan (approximately 2,11,11,28,16,600.00 Indian Rupee) by transferring 83 tons of fake gold as collateral to financial institutions.
To clarify the scale of the scam, it should be said that this is 22% of the total annual gold production in the country and 4.2% of China’s gold reserves as of 2019. Simply put, more than 4% of all gold in public vaults can be false. “Samovar gold” was discovered by chance when one of the Kingold Dongguan Trust’s creditors decided to cover his debts by settling his collateral.
After learning the history of the insured metal, three other Wuhan Kingold Jewelry lenders decided to urgently check their gold currency and also made sure to keep a forgery in their safes.
Kingold Dongguan Trust, so famous for homemade gold, was founded in 2002 by Jia Zhihong, the former gold mine manager of the People’s Liberation Army. He is a respected and authoritative person among the representatives of China’s big companies, so no one expected a trick.
The company began its activities as a gold mining factory, whose main client was the People’s Bank of China. After the restructuring, the company stopped cooperating with the state financial institution and began working privately. In September 2019, Wuhan Kingold Jewelry reported that its assets were valued at $3.3 billion.
The case when China forged gold on an industrial scale is far from the first. The last time a similar scandal erupted in 2016, when regulators, after checking the gold bars in the vaults, found a black tungsten insert inside. Then, guaranteed for counterfeits, loans of 19 billion yuan (176 billion rubles) were obtained.
Apparently, Mr. Jia Zhihong was under a serious review: if the research shows that the company owner was involved in the manufacture of fake precious metals, he would not have to rely on court leniency. In China, they shoot for more modest “GOLD PRANK jokes.”