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Fake Gold Bars discovered in Fort Knox

Discussion in 'The Okie Corral' started by Retseh, Jan 16, 2010.

  1. Retseh

    Retseh

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    Quite why this isn't making bigger headlines is a mystery to me.

    http://www.daily.pk/fake-gold-bars-in-bank-of-england-and-fort-knox-14477/

    It’s one thing to counterfeit a twenty or hundred dollar bill. The amount of financial damage is usually limited to a specific region and only affects dozens of people and thousands of dollars. Secret Service agents quickly notify the banks on how to recognize these phony bills and retail outlets usually have procedures in place (such as special pens to test the paper) to stop their proliferation.

    But what about gold? This is the most sacred of all commodities because it is thought to be the most trusted, reliable and valuable means of saving wealth.

    A recent discovery — in October of 2009 — has been suppressed by the main stream media but has been circulating among the “big money” brokers and financial kingpins and is just now being revealed to the public. It involves the gold in Fort Knox — the US Treasury gold — that is the equity of our national wealth. In short, millions (with an “m”) of gold bars are fake!

    Who did this? Apparently our own government.

    Background
    In October of 2009 the Chinese received a shipment of gold bars. Gold is regularly exchanged between countries to pay debts and to settle the so-called balance of trade. Most gold is exchanged and stored in vaults under the supervision of a special organization based in London, the London Bullion Market Association (or LBMA). When the shipment was received, the Chinese government asked that special tests be performed to guarantee the purity and weight of the gold bars. In this test, four small holed are drilled into the gold bars and the metal is then analyzed.

    Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What’s more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!

    At first many gold experts assumed the fake gold originated in China, the world’s best knock-off producers. The Chinese were quick to investigate and issued a statement that implicated the US in the scheme.

    What the Chinese uncovered:
    Roughly 15 years ago — during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] — between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day.

    According to the Chinese investigation, the balance of this 1.3 million to 1.5 million 400 oz tungsten cache was also gold plated and then allegedly “sold” into the international market. Apparently, the global market is literally “stuffed full of 400 oz salted bars”. Perhaps as much as 600-billion dollars worth.

    An obscure news item originally published in the N.Y. Post [written by Jennifer Anderson] in late Jan. 04 perhaps makes sense now.

    DA investigating NYMEX executive ,Manhattan, New York, –Feb. 2, 2004.
    A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney’s office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange’s markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney’s office also declined comment.”

    The offices of the Senior Vice President of Operations — NYMEX — is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep these records. These precise records would show the lineage of all the physical gold settled on the exchange and hence “prove” that the amount of gold in question could not have possibly come from the U.S. mining operations — because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production.

    No one knows whatever happened to Stuart Smith. After his offices were raided he took “administrative leave” from the NYMEX and he has never been heard from since. Amazingly, there never was any follow up on in the media on the original story as well as ZERO developments ever stemming from D.A. Morgenthau’s office who executed the search warrant.

    Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then takes leave — all for nothing?
     
  2. Atlas

    Atlas transmogrifier

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  3. 1811guy

    1811guy Formerly1811guy2

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    The Pakistan Daily - now there's a reliable news source.:upeyes:
     
  4. Mikey444

    Mikey444 sacré bleu!

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    Yeah, I trust the newspaper "Pakistan Daily"
     
  5. Mikey444

    Mikey444 sacré bleu!

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    In the article it says:

    To which government are they referring? The Pakistani, English, or American? Since Ft. Knox holds gold from other nations, it could be any. The article doesn't clarify.
     
  6. JBnTX

    JBnTX Bible Believer

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    The quickest way to discredit a news story is to release it through a "questionable" source.
    That way no other news agency will touch it and the story goes unreported.

    It's an old US Government trick.

    They've been doing it for years with everything from the UFO cover up,
    who really killed Kennedy, and the 911 terror attack.
     
    Last edited: Jan 16, 2010
  7. BigFelipe

    BigFelipe BeenQuietTilNow

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    I'll play...


    Seriously? The Pakistan Daily? Really? You are gonna present this as credible news?

    No way this is real. They are hard core about how they process weight and track gold in the exchanges like Knox. They would know immediately that they were fakes. It couldn't be covered up. Tungsten doesn't weigh near as much as gold. It would be obvious.

    Also, if we gave China a bunch of fake gold toward a debt and they found out, it would be an international **** storm...
     
  8. Retseh

    Retseh

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    Ok, how about a website for gold traders (or does it have to be in USA Today):

    http://www.gold-quote.net/en/articles/fake-tungsten-gold-bars.php

    The counterfeit story

    This October, bankers in Hong Kong were in for a rude shock when they discovered some gold bars from the US to be actually gold plated tungsten i.e., fake gold bars. Acting fast, the Chinese officials found the perpetrators within hours. It seems that fake Tungsten blanks, between 1.3 and 1.5 million 400 oz, were manufactured in the US about fifteen years ago during the Clinton administration. Said to have been done by a very sophisticated refiner, 640,000 of these tungsten planks were gold plated and shifted to Fort Knox. The remaining also gold plated, but sold into the international market. (Fort Knox , as you may be aware, is the United States Bullion Depository, where the official gold reserves of the federal government are stored. This depository of about 4,603 tons (4 176 metric tonness) is the second highest gold depository in the US after the Federal Reserve Bank of New York's underground vault in Manhattan (5,000 metric tonness of gold). Whoever pulled this one on the gold bars had connections inside the government, big banks and also a top-of-the-line fabrication facility. For, counterfeit is not something new for the US government, it did this is 1964 when zinc dimes clad in silver were introduced. That's why the pre 1964 coins are valued more. Elsewhere, early this year, another counterfeit story made rounds as some of the gold bars in the vaults of the National bank of Ethiopia were found to be gold plated steel. It made news when the shipment of gold was returned by South Africa. It only could have been the work of a genius as fake gold bars made of steel are among the easiest to detect as they are lighter. Among gold coins, 22k Gold coins such as Krugerrand, are less likely to be counterfeited because the density of 22k gold minted from gold alloy that is 91.67 percent pure, is far apart from that of tungsten. Tungsten has the same density (19.25g/cm3) as gold, so a fake bar is indistinguishable by weighing it. In comparison the density of pure 24k gold is within 0.26% of tungsten.
     
  9. luckyrxc

    luckyrxc

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    Pakistan Daily. Just one notch above the likes of Geraldo Rivera or MSN for reliability.
     
  10. flatag

    flatag Must have tacos

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    Nothing we get from china is pure. Why should they expect pure in return.
     
  11. Retseh

    Retseh

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    Also making news in the gold industry's mining magazine, let me know when you're done.

    http://agmetalminer.com/2009/12/03/fake-gold-bars-discovered-in-hk-lbma-approved-vaults/

    Fake Gold Bars Discovered in HK LBMA Approved Vaults
    December 3rd, 2009 · 5 Comments
    It is proving quite difficult to find any mainstream information sources able to substantiate the rumors that have been circulating about the widespread distribution of fake tungsten filled gold bars. So the story goes, about 15 years ago between 1.3 and 1.5 million 400oz tungsten bars were allegedly manufactured by a sophisticated refiner in the US. To save you whisking out your calculator that’s more than 16,000 metric tons. Subsequently, some 640,000 of these tungsten blanks were 24kt gold plated and shipped to Fort Knox. Since then these or other bars manufactured by the same company have found their way into sovereign vaults and ETF’s holdings around the world.

    First, why would anyone do it? Well gold comes in various forms and sizes. Coins are stamped, smaller bars are stamped or machined, but the largest size, 400 oz “good delivery” bars favored by central banks and major investors are cast – making them easier to hollow out and fill with tungsten. Because it is so hard, tungsten is notoriously difficult to stamp to shape. At $20/lb, tungsten obviously is a whole lot cheaper than gold at $16,000 per pound and with a density of 19.35g/cm3 it is almost a pure match for gold at 19.32g/cm3 – making detection by standard methods impossible. Assayers around the world are reportedly being asked to check reserves but they will have to use more sophisticated methods than simple weight, such as drilling holes into the center of bars or scanning them to see into the core. One wonders what methods the Indians used to check their 200 ton purchase form the IMF last month.

    Now these stories would have remained just that, stories, if London Bullion Market Association (LBMA) approved vaults in Hong Kong did not discover 400oz bars of exactly this type last month. The discovery has got people asking what chance is there that the physically backed gold ETF’s are not sitting on some of the same bars? As they are not required to audit their holdings, no one is going to know. Moreover their prospectus purportedly reads, “Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss”. In other words it’s the buyers’ problem, not the fund. A story in Commodity Online that the Central Bank in Ethiopia had discovered some of the same bars in their reserves a few years ago proved to be a red herring. The bars were indeed fakes but they were gilded steel and showed up the moment the bars were shipped to South Africa – the South Africans know a thing or two about gold, they were promptly returned. Interestingly some producers are not so covert about their activities. A Chinese company called Chinatungsten is advertising imitation gold merchandise on its website. The following quote is taken directly from their Tungsten Alloy for Gold Substitution page: “a coin with a tungsten center and gold all around it could not be detected as counterfeit by density measurement alone … We are well accustomed to exploit more innovative applications of tungsten products. Gold-plated tungsten is one of our main products.” One wonders what kind of customer they are selling to!
     
  12. Pancho 12

    Pancho 12 I'm thirsty...

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    From wiki, YMMV:

    Density of gold = 19.30g/cc

    Density of tungsten = 19.25g/cc

    Thanks for playing.
     
    Last edited: Jan 16, 2010
  13. Retseh

    Retseh

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    As stated originally, I'm more interested in why this hasn't been picked up in the main stream media.

    We're investigating steroids in Baseball, but there's no interest in THIS?

    Couldn't be anything to do with our national financial interests, nahh, couldn't be.
     
  14. Retseh

    Retseh

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  15. 4TS&W

    4TS&W 2A RKBA 4EVER

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    that would be bad... if it were true..
     
  16. paynter2

    paynter2 It ain't over Millennium Member

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    The Pakistan paper was just printing an old story. They did not originate the story or do any investigation - simply a re-print.




    11/12 Rob Kirby - On Doing God's Work

    On Doing God’s Work

    Rob Kirby

    “Gold Finger - A New Take On Operation Grand Slam With A Tungsten Twist”

    I’ve already reported on irregular physical gold settlements which occurred in London, England back in the first week of October, 2009. Specifically, these settlements involved the intermediation of at least one Central Bank [The Bank of England] to resolve allocated settlements on behalf of J.P. Morgan and Deutsche Bank – who DID NOT have the gold bullion that they had sold short and were contracted to deliver. At the same time I reported on two other unusual occurrences:

    1. irregularities in the publication of the gold ETF - GLD’s bar list from Sept. 25 – Oct.14 where the length of the bar list went from 1,381 pages to under 200 pages and then back up to 800 or so pages.
    2. reports of 400 oz. “good delivery” bricks of gold found gutted and filled with tungsten within the confines of LBMA approved vaults in Hong Kong.

    Why Tungsten?

    If anyone were contemplating creating “fake” gold bars, tungsten [at roughly $10 per pound] would be the metal of choice since it has the exact same density as gold making a fake bar salted with tungsten indistinguishable from a solid gold bar by simply weighing it.

    Unfortunately, there are now more sordid details to report.

    When the news of tungsten “salted” gold bars in Hong Kong first surfaced, many people

    who I am acquainted with automatically assumed that these bars were manufactured in

    China – because China is generally viewed as “the knock-off capital of the world”.

    Here’s what I now understand really happened:

    The amount of “salted tungsten” gold bars in question was allegedly between 5,600 and 5,700 – 400 oz – good delivery bars [roughly 60 metric tonnes].

    This was apparently all highly orchestrated by an extremely well financed criminal operation.

    Within mere hours of this scam being identified – Chinese officials had many of the perpetrators in custody.

    And here’s what the Chinese allegedly uncovered:

    Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.

    The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.

    Apparently, the global market is literally “stuffed full of 400 oz salted bars”.

    Makes one wonder if the Indians were smart enough to assay their 200 tonne haul from the IMF?

    A Slow Motion Train Wreck, Years in the Making

    An obscure news item originally published in the N.Y. Post [written by Jennifer Anderson] in late Jan. 04 has always ‘stuck in my craw’:

    DA investigating NYMEX executive - Manhattan, New York, district attorney's office, Stuart Smith - Melting Pot - Brief Article – Feb. 2, 2004

    A top executive at the New York Mercantile Exchange is being investigated by the Manhattan district attorney. Sources close to the exchange said that Stuart Smith, senior vice president of operations at the exchange, was served with a search warrant by the district attorney's office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchange's markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorney's office also declined comment.

    The offices of the Senior Vice President of Operations - NYMEX – is exactly where you would go to find the records [serial number and smelter of origin] for EVERY GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep these records. These precise records would show the lineage of all the physical gold settled on the exchange and hence "prove" that the amount of gold in question could not have possibly come from the U.S. mining operations – because the amounts in question coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine production.

    We never have found out what happened to poor ole Stuart Smith – after his offices were "raided" – he took administrative leave from the NYMEX and he has never been heard from since. Amazingly [or perhaps not], there never was any follow up on in the media on the original story as well as ZERO developments ever stemming from D.A. Morgenthau’s office who executed the search warrant.

    Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then takes leave - all for nothing?

    These revelations should provide a “new filter” through which Rothschild exiting the gold market back in 2004 begins to make a little more sense:

    “LONDON, April 14, 2004 (Reuters) - NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”

    Interestingly, Bill Murphy speculated about this back in 2004;

    “Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but suspect:”

    *SOMETHING IS AMISS. THEY KNOW A BIG GOLD SCANDAL IS COMING AND THEY WANT NO PART OF IT. …”

    “ROTHSCHILD WANTS OUT BEFORE THE PROVERBIAL "S" HITS THE FAN.” BILL MURPHY, LEMETROPOLE, 4-18-2004

    Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004

    In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:

    Excerpt from the GLD prospectus on page 11:

    http://www.spdrgoldshares.com/media/GLD/file/SPDRGoldTrustProspectus.pdf

    Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.
     
  17. Annoyedgrunt

    Annoyedgrunt Dry Heat my ASS

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    "What do you mean, TUNGSTEN?? You mean my secret plan to irradiate all of that gold would have been for nothing!?"


    [​IMG]
     
  18. Captain America

    Captain America

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  19. Retseh

    Retseh

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    I agree, that was obvious from their "what are WE doing" references, as if they themselves were American.

    But it doesn't change the fact that this is widely being discussed in Gold trading circles, but has not made it into the mainstream media.

    I'm calling news suppression, too many national interests at play here, and it all leads back to Clinton's doorstep.
     
  20. mitchshrader

    mitchshrader Deceased

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    I'd suspect one would find a strong tendency to assume room temperature among those claiming knowledge of such a counterfeiting operation. In fact, I'd bet it approached certainty.

    Might be a good time to pass that excise tax on foreign gold miners, that everybody else in the world charges, and Harry Reid blocks every time it comes up. 6% is the number he can't stand, and that's how much of OUR gold they'd have to pay..

    without going bankrupt, which is the excuse they use to avoid paying it.

    Counterfeiting is a reasonable option when confronted with institutional corruption. I'm curious as heck why there hasn't been more of it. Faking gold eagles wouldn't be so hard as all that.
     
    Last edited: Jan 16, 2010