China’s biggest gold fraud, 4% of its reserves may be fake: Report
A stunning fraud may be unfolding in China according to media reports.”In short, more than 4 per cent of China’s official gold reserves may be fake. And this assume that no other Chinese gold producers and jewelry makers are engaging in similar fraud, the report said.”
Kingold Jewellery has been accused of gold plating 83 tonnes of copper and taking over $2.5 billion in loans posting that as collateral. If the report proves correct this will be the largest gold fraud in recent history. The story underlines once again the issues of commodities secularization, custodianship, and commercialization. As crypto commodity Deriveum could not have such issues, which would make it particularly suitable for collateral purposes, especially in cross-border deals.
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