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Getbig Main Boards => Politics and Political Issues Board => Topic started by: SAMSON123 on January 14, 2010, 09:04:37 PM
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Fake gold bars in Bank of England and Fort Knox
Written by (Author ) World Jan 11, 2010
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 exchanges 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?
The revelations of fake gold bars also explains another highly unusual story that also happened in 2004:
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, GATA’s 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 scandal is coming and they don’t want to be a part of it… [The] Rothschild wants out before the proverbial “S” hits the fan.” — BILL MURPHY, LEMETROPOLE, 4-18-2004
What is the GATA?
The Gold Antitrust Action Committee (GATA) is an organisation which has been nipping at the heels of the US Treasury Federal Reserve for several years now. The basis of GATA’s accusations is that these institutions, in coordination with other complicit central banks and the large gold-trading investment banks in the US, have been manipulating the price of gold for decades.
What is the GLD?GLD is a short form for Good London Delivery. The London Bullion Market Association (LBMA) has defined “good delivery” as a delivery from an entity which is listed on their delivery list or meets the standards for said list and whose bars have passed testing requirements established by the associatin and updated from time to time. The bars have to be pure for AU in an area of 995.0 to 999.9 per 1000. Weight, Shape, Appearance, Marks and Weight Stamps are regulated as follows:
Weight: minimum 350 fine ounces AU; maximum 430 fine ounces AU, gross weight of a bar is expressed in troy ounces, in multiples of 0.025, rounded down to the nearest 0.025 of an troy ounce.
Dimensions: the recommended dimensions for a Good Delivery gold bar are: Top Surface: 255 x 81 mm; Bottom Surface: 236 x 57 mm; Thickness: 37 mm.
Fineness: the minimum 995.0 parts per thousand fine gold. Marks: Serial number; Assay stamp of refiner; Fineness (to four significant figures); Year of manufacture (expressed in four digits).
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 fake 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]
“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.”
The Federal Reserve knows but is apparently part of the schemeEarlier this year GATA filed a second Freedom of Information Act (FOIA) request with the Federal Reserve System for documents from 1990 to date having to do with gold swaps, gold swapped, or proposed gold swaps.
On Aug. 5, The Federal Reserve responded to this FOIA request by adding two more documents to those disclosed to GATA in April 2008 from the earlier FOIA request. These documents totaled 173 pages, many parts of which were redacted (blacked out). The Fed’s response also noted that there were 137 pages of documents not disclosed that were alleged to be exempt from disclosure.
GATA appealed this determination on Aug. 20. The appeal asked for more information to substantiate the legitimacy of the claimed exemptions from disclosure and an explanation on why some documents, such as one posted on the Federal Reserve Web site that discusses gold swaps, were not included in the Aug. 5 document release.
In a Sept. 17, 2009, letter on Federal Reserve System letterhead, Federal Reserve governor Kevin M. Warsh completely denied GATA’s appeal. The entire text of this letter can be examined at http://www.gata. org/files/ GATAFedRespon” onclick=”window. open(this. href);return false;” onclick=”window. open(this. href);return false;” onclick=”window. open(this. href);return false;” onclick=”window. open(this. href);return false;” onclick=”window. open(this. href);return false;” onclick=”window. open(this. href);return false;” onclick=”window. open(this. href);return false; … 7-2009.pdf.
The first paragraph on the third page is the most revealing.”In connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you.”
above statement is an admission that the Federal Reserve has been involved with the fake gold bar swaps and that it refuses to disclose any information about its activities!
The above statement is an admission that the Federal Reserve has been involved with the fake gold bar swaps and that it refuses to disclose any information about its activities!
Why use tungsten?
If you are going to print fake money you need to have the special paper, otherwise the bills don’t feel right and can be easily detected by special pens that most merchants and banks use. Likewise, if you are going to fake gold bars you had better be sure they have the same weight and properties of real gold.
In early 2008 millions of dollars in gold at the central bank of Ethiopia turned out to be fake. What were supposed to be bars of solid gold turned out to be nothing more than gold-plated steel. They tried to sell the stuff to South Africa and it was sent back when the South Africans noticed this little problem. The problem with making good-quality fake gold is that gold is remarkably dense. It’s almost twice the density of lead, and two-and-a-half times more dense than steel. You don’t usually notice this because small gold rings and the like don’t weigh enough to make it obvious, but if you’ve ever held a larger bar of gold, it’s absolutely unmistakable: The stuff is very, very heavy.
The standard gold bar for bank-to-bank trade, known as a “London good delivery bar” weighs 400 troy ounces (over thirty-three pounds), yet is no bigger than a paperback novel. A bar of steel the same size would weigh only thirteen and a half pounds.
According to gold expert, Theo Gray, the problem is that there are very few metals that are as dense as gold, and with only two exceptions they all cost as much or more than gold.
The first exception is depleted uranium, which is cheap if you’re a government, but hard for individuals to get. It’s also radioactive, which could be a bit of an issue.
The second exception is a real winner:
tungsten. Tungsten is vastly cheaper than gold (maybe $30 dollars a pound compared to $12,000 a pound for gold right now). And remarkably, it has exactly the same density as gold, to three decimal places. The main differences are that it’s the wrong color, and that it’s much, much harder than gold. (Very pure gold is quite soft, you can dent it with a fingernail.)
A top-of-the-line fake gold bar should match the color, surface hardness, density, chemical, and nuclear properties of gold perfectly. To do this, you could could start with a tungsten slug about 1/8-inch smaller in each dimension than the gold bar you want, then cast a 1/16-inch layer of real pure gold all around it. This bar would feel right in the hand, it would have a dead ring when knocked as gold should, it would test right chemically, it would weigh *exactly* the right amount, and though I don’t know this for sure, I think it would also pass an x-ray fluorescence scan, the 1/16″ layer of pure gold being enough to stop the x-rays from reaching any tungsten. You’d pretty much have to drill it to find out it’s fake.
Such a top-quality fake London good delivery bar would cost about $50,000 to produce because it’s got a lot of real gold in it, but you’d still make a nice profit considering that a real one is worth closer to $400,000.
What’s going to happen now?
Politicians like Ron Paul have been demanding that the Federal Reserve be more transparent and open up their records for public scrutiny. But the Fed has consistently refused, stating that these disclosures would undermine its operation. Yes, it certainly would!
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didn't you already post this?
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I hope the (GLD) doesn't hold any of those fake gold bars..The (GLD) is a an ETF that invests only in gold Futures, and other financial instruments to hep the fund replicate the performance of spot gold prices. I was buying puts on the GLD a few weeks ago...Sold them for a nice gain to..
On December 8th, Canadian money management firm Sprott Asset Management, which manages approximately $4.4 billion in assets, filed a preliminary prospectus (Form F-1) with the US Securities and Exchange Commission for a US$ 575 million initial public offering [IPO] of the Sprott Physical Gold Trust. The Sprott Physical Gold Trust would exclusively hold physical gold bullion. The trust plans to list on the NYSE under the ticker “PHYS”, and on the TSX under the ticker “PHY”. The initial public offering price is expected to be $10.00 per unit
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didn't you already post this?
First post I made was related to america selling gold bars to China that were Tungsten bars overlain with gold. Now the trickery of america has spread to England and is even being used within the borders of america (Ft Knox). Now that this is becoming a widespread and international fraud, the dollar and those invested in gold may find themselves as swindled and broke as those who invested in real estate. What i want to see is what this gold fraud exposure will do to world currencies when it is found that there is far LESS gold in circulation/existence than what has been reported
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I hope the (GLD) doesn't hold any of those fake gold bars..The (GLD) is a an ETF that invests only in gold Futures, and other financial instruments to hep the fund replicate the performance of spot gold prices. I was buying puts on the GLD a few weeks ago...Sold them for a nice gain to..
On December 8th, Canadian money management firm Sprott Asset Management, which manages approximately $4.4 billion in assets, filed a preliminary prospectus (Form F-1) with the US Securities and Exchange Commission for a US$ 575 million initial public offering [IPO] of the Sprott Physical Gold Trust. The Sprott Physical Gold Trust would exclusively hold physical gold bullion. The trust plans to list on the NYSE under the ticker “PHYS”, and on the TSX under the ticker “PHY”. The initial public offering price is expected to be $10.00 per unit
As with many commodities based ETFs - GLD is something that will be hit harder with the looming gold crisis than the physical gold itself.
One problem with physical gold is that much more gold has been sold than is in store by the people selling the gold. That piece of ETF paper you hold has no relationship to gold in existence.
Personally, I think theres's some BS in this story - if you were going to fake gold, you would NOT use gold plating which can be scraped off with a pen-knife. What you would do is mould a thin layer of gold around a tungsten bar.
Is there a gold crisis looming just like all of the other bubbles of late - more than likely. Is this story true - I would guess not.
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As with many commodities based ETFs - GLD is something that will be hit harder with the looming gold crisis than the physical gold itself.
One problem with physical gold is that much more gold has been sold than is in store by the people selling the gold. That piece of ETF paper you hold has no relationship to gold in existence.
Personally, I think theres's some BS in this story - if you were going to fake gold, you would NOT use gold plating which can be scraped off with a pen-knife. What you would do is mould a thin layer of gold around a tungsten bar.
Is there a gold crisis looming just like all of the other bubbles of late - more than likely. Is this story true - I would guess not.
You obviously have not been paying attention. what you have just reported is EXACTLY what happened. An appreciable amount of gold was wrapped/moulded/dipped around the tungsten bars. Tungsten and gold weight exactly the same so detecting the fake gold bars was not possible by that method until someone actually cut the bars open to reveal the tungsten cores (Chinese did this) I posted another thread about this earlier showing how the Chinese were fooled by this until...
Now it seems the american scheme has effected England and even america...no wonder there was such a push for people to buy gold. Just like real estate the scammers knew exactly what they were doing. Now the situation has been brought to light... I am just waiting to see what the repercussions will be.
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as predicted... gold bubble bursts. schiff gets backdoored again. dollar recovers. You gotta have more faith in the backing of the US govt than in some tungy metal.
true or not, who cares... it's a good story... it stops people from throwing our currency away buying gold.
Am I wrong, or does this help the dollar (if only because people stop spending them on gold) ?
???
THIS IS HORRENDOUSLY TERRIBLE FOR THE DOLLAR AND AMERICA!!!!
This is another american LIE and swindle of the world. The cost of gold is about to shoot through the roof as the revelation that less gold is available than thought. This can begin destabilizing the currency values around the world thanks to this LIE by america. OPEC nations could immediately switch the sale of oil to Euros, Yuans, Yen etc as retaliation and because the american dollar is pegged to oil it would collapse overnight. In the process world currencies would fall as well, but not as much as the dollar. The new enemy of america will be CHINA, EUROPE, AUSTRALIA, MIDDLE EAST, JAPAN etc as their currencies will be effected by this scheme by ameriac in as much as their economies were rocked by americas real estate scheme that defrauded them of TRILLIONS.
Forget Arab terrorist...the new terrorist will be named Pierre, Francois, Wong, Yang, Tong, Helmud, Wolfgang, Carlos, Juan etc etc and they will be from Europe, Australia, China , Japan etc.
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As with many commodities based ETFs - GLD is something that will be hit harder with the looming gold crisis than the physical gold itself.
One problem with physical gold is that much more gold has been sold than is in store by the people selling the gold. That piece of ETF paper you hold has no relationship to gold in existence.
Personally, I think theres's some BS in this story - if you were going to fake gold, you would NOT use gold plating which can be scraped off with a pen-knife. What you would do is mould a thin layer of gold around a tungsten bar.
Is there a gold crisis looming just like all of the other bubbles of late - more than likely. Is this story true - I would guess not.
Good point. Lots of paper investments with gold running around. When the music stops I would bet that these type of investments will be left cold and dead in an alley somewhere. If you don't actually hold the physical bars/coins etc than you run the risk of being left on your ass when all is said and done.
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Good point. Lots of paper investments with gold running around. When the music stops I would bet that these type of investments will be left cold and dead in an alley somewhere. If you don't actually hold the physical bars/coins etc than you run the risk of being left on your ass when all is said and done.
Exactly. People are better off buying 9mm ammo boxes. Think about it. They wont go down in value, have a clear defined purpose, are useful, can be traded for goods and services, can be used in a variety of weapons, are made of brass & lead, and will only get more valuable and scarce if SHTF.
Isnt that the original appeal of Gold GigantorX?
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I feel stupid because I don't 'get' what happens if confidence in gold is suddenly shook.
I thought it would mean americans stop trading their dollars for gold, as Beck and Rush spend all day talking about how bad things are for the buck, then encourage us to buy gold on their webpages.
I don't understand this issiue.
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I feel stupid because I don't 'get' what happens if confidence in gold is suddenly shook.
I thought it would mean americans stop trading their dollars for gold, as Beck and Rush spend all day talking about how bad things are for the buck, then encourage us to buy gold on their webpages.
I don't understand this issiue.
Just buy 9mm boxes and you will be fine.
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well yeah, that should be common sense. preaching to the choir man lol...
But for the gold issue, I'd like to learn more. nicky predicted gold would peak soon. Schiff said $2k was the price ceiling, at least.
Interesting stuff.
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well yeah, that should be common sense. preaching to the choir man lol...
But for the gold issue, I'd like to learn more. nicky predicted gold would peak soon. Schiff said $2k was the price ceiling, at least.
Interesting stuff.
Instead of worrying about Levi Johnston and Palin Baby CT's go to Denniger's site, www.businessinsider.com , realclearmarkets.com, etc.
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nah, levi is fascinating. And the baby cts are cool too. Let's do both!
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well yeah, that should be common sense. preaching to the choir man lol...
But for the gold issue, I'd like to learn more. nicky predicted gold would peak soon. Schiff said $2k was the price ceiling, at least.
Interesting stuff.
With this revelation of fake gold and the reality that there is a whole lot LESS gold in circulation than believed..GOLD MAY SOAR TO 5000 dollars before it is all over. I wonder if the SILVER people have been buying is really just STAINLESS STEEL!!!!!
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With this revelation of fake gold and the reality that there is a whole lot LESS gold in circulation than believed..GOLD MAY SOAR TO 5000 dollars before it is all over. I wonder if the SILVER people have been buying is really just STAINLESS STEEL!!!!!
The only real way to buy gold is to get physical coins that can be verified by a jewlwer, etc. Anything else is worthless IMHO.
As far as ammo, I simply think 9mm is the perfect investment and hedge for SHTF scenario.
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I feel stupid because I don't 'get' what happens if confidence in gold is suddenly shook.
I thought it would mean americans stop trading their dollars for gold, as Beck and Rush spend all day talking about how bad things are for the buck, then encourage us to buy gold on their webpages.
I don't understand this issiue.
It's like all bubbles. People don't have to buy gold. On the other hand, people that brought it do have to sell at some point.
If confidence wanes and the price starts to drift down, more & more sellers will jump on board and the price will crash down much faster than it went up.
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It's like all bubbles. People don't have to buy gold. On the other hand, people that brought it do have to sell at some point.
If confidence wanes and the price starts to drift down, more & more sellers will jump on board and the price will crash down much faster than it went up.
I'm telling you 9mm ammo is probably a great investment if you think about it.