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Kingold Jewellery - 83 tonnes of fake gold bars

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  1. #1

    Kingold Jewellery - 83 tonnes of fake gold bars

    Although the case was reported to police back in February, it's getting plenty of coverage perfectly timed to coincidewith this week's SEC hearings into the risks of investing in PRC companies listed on NASDAQ ...

    "Lenders to the Nasdaq-listed jewelry maker reportedly have discoverd that 83 tons of gold used to borrow billions appear to be copper alloy bars."

    Lovely denial from the company's chairman: "How could it be fake if insurance companies agreed to cover it?"

    https://realmoney.thestreet.com/inve...loans-15365197
    shri likes this.

  2. #2

    Join Date
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    honestly the chinese banks have to blame themselves if they are screwed.. if i am receiving 1 kg of gold and i got a fake, then i blame myself.. but if we are talking about tonnes, then the easiest thing is to find a non-intrusive detector or even just sample pieces and cut them into half to check their authenticity.. gold can always be melted back after cutting especially if its a non limited edition bar...

    shri likes this.

  3. #3

    Tiny market cap on Nasdaq - US$5m - seems more like a vanity listing, but maybe it still helped them fool the institutions in China. You would have expected them to do more due diligence.

    Mingsheng Trust, Dongguan Trust and another lender, Chang'An Trust, have sued Kingold and demanded PICC P&C to cover their losses.
    But local financial institutions in Hubei and Wuhan avoided doing business with Kingold, Caixin reports. A source told the publication that locals suspected his gold was not real, melded with copper.
    shri likes this.

  4. #4

    Join Date
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    Quote Originally Posted by Elefant&Castle:
    Tiny market cap on Nasdaq - US$5m - seems more like a vanity listing, but maybe it still helped them fool the institutions in China. You would have expected them to do more due diligence.
    They are trading at $0.5 right now. 52 week high was close to $5

  5. #5
    Quote Originally Posted by mrgoodkat:
    They are trading at $0.5 right now. 52 week high was close to $5
    True - but still not alot relative to the 20 billion yuan loan (USD 2.8b). The price chart is not inspirering - mostly flat, few peaks over the years - seems to have been over $100 20 years ago.


    https://markets.ft.com/data/equities...rts?s=KGJI:NAQ
    mrgoodkat likes this.