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china kings gold scam

According to a report in Zero Hedge, not only does it involve China, but it emerges from a city that has become synonymous for all that is scandalous about China: Wuhan.

The 83 tons of purportedly pure gold stored in creditors' coffers by Kingold as of June, backing the 16 billion yuan of loans, would be equivalent to 22 per cent of China's annual gold production and 4.2 per cent of the state gold reserve as of 2019.

China is at the centre of the discovery of what may be one of the biggest gold counterfeiting scandal in recent history.


PICC P&C declined to comment to Caixin on the matter but said the case is in judicial procedure. A source from PICC P&C told Caixin that the claim procedure should be initiated by Kingold as the insured party rather than financial institutions as beneficiaries. Kingold hasn't made a claim, the Caixin source said.

In early June, Minsheng Trust, Dongguan Trust and a smaller creditor Chang'An Trust filed lawsuits against Kingold and demanded that PICC P&C cover their losses.

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.

At the centre of the fraud is Wuhan Kingold Jewelry Inc., a company which as the name implies was founded and operates out of Wuhan, and which says it is a "A Company with a Golden future."

In total, Kingold pledge tens of thousands of kilograms of gold to no less than 14 cr ..


As Caxin notes, the Kingold counterfeiting case echoes China's largest gold-loan fraud case, unfolding since 2016 in the northwest Shaanxi province and neighbouring Hunan, where regulators found adulterated gold bars in 19 lenders' coffers backing 19 billion yuan of loans, or about $2.5 billion. In that case, a lender seeking to melt gold collateral found black tungsten plate in the middle of the bars.

In total, Kingold pledge tens of thousands of kilograms of gold to no less than 14 cr ..


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