Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan's Jewelry District

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#1
with prices so high it's inevitable isn't it

source: zerohedge

It is one thing for tungsten-filled gold bars to appear in the UK, or in Germany: after all out of sight, and across the Atlantic, certainly must mean out of mind, and out of the safe. However, when a 10 ounce 999.9 gold bar bearing the stamp of the reputable Swiss Produits Artistiques Métaux Précieux (PAMP, with owner MTP) and a serial number (serial #038892, likely rehypothecated in at least 10 gold ETFs across the world but that's a different story), mysteriously emerges in the heart of the world's jewerly district located on 47th street in Manhattan, things get real quick. Moments ago, Myfoxny reported that a 10-ounce gold bar costing nearly $18,000 turned out to be a counterfeit. The discovery was made by the dealer Ibrahim Fadl, who bought the PAMP bar in question from a merchant who has sold him real gold before. "But he heard counterfeit gold bars were going around, so he drilled into several of his gold bars worth $100,000 and saw gray tungsten -- not gold. The bar was filled with tungsten, which weighs nearly the same as gold but costs just over a dollar an ounce."

What makes so devious is a real gold bar is purchased with the serial numbers and papers, then it is hollowed out, the gold is sold, the tungsten is put in, then the bar is closed up. That is a sophisticated operation.

MTB, the Swiss manufacturer of the gold bars, said customers should only buy from a reputable merchant. The problem, he admits, is Ibrahim Fadl is a very reputable merchant.

Raymond Nessim, CEO Manfra, Tordell & Brookes, said he has reported the situation to the FBI and Secret Service.

The Secret Service, which deals with counterfeits, said it is investigating.

And cue panic on the realization that virtually any gold bar in the world, not just those in Europe and Australia, which have already had close encounters with Tungsten substitutes, but also New York may be hollowed out and have a real worth of a few dollars max. Which, sadly, is fitting considering our main story from last night was the realization that an unknown amount of Chinese iron ore had either never existed or had simply vaporized, and was no longer serving as the secured collateral to various liabilities circulating in the electronic ether. After all, only the most naive out there could conceive of gold being sacrosanct when every other asset class is being diluted to infinity by a regime that has long since run out of money.

As for gold-based transactions on West 47th street: look for that market to grind to a halt at least for as long as it takes for this scandal to be forgotten too.

The only open question remaining will be how much of the gold located 90 feet below Libert 33 is in the same Tungstenized format. For what it's worth: it is unlikely we will ever find out.

This is what glaring gold counterfeiting looks like.

[Image: fake%20gold%201.jpg]

[Image: fake%20gold%202_0.jpg][Image: fake%20gold%203_0.jpg] [Image: fake%20gold%204_0.jpg]
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#2
Ultrasonic Gold Detector.
http://www.olympus-ims.com/en/applicatio...gold-bars/
For those who have gold bars at home. Big Grin

I wonder those gold bars that were sold by Genneva Gold etc will be at risk.

Even for UOB, I suppose now everyone will request for an ultrasonic test before they buy.

How about SPDR Gold Share?
http://www.spdrgoldshares.com/media/GLD/...n_2012.pdf
The certificate only indicates statistical random check with weigh measurement only
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#3
(19-09-2012, 01:09 PM)yeokiwi Wrote: Ultrasonic Gold Detector.
http://www.olympus-ims.com/en/applicatio...gold-bars/
For those who have gold bars at home. Big Grin

I wonder those gold bars that were sold by Genneva Gold etc will be at risk.

Even for UOB, I suppose now everyone will request for an ultrasonic test before they buy.

How about SPDR Gold Share?
http://www.spdrgoldshares.com/media/GLD/...n_2012.pdf
The certificate only indicates statistical random check with weigh measurement only

http://www.myfoxny.com/story/19578206/fa...-manhattan
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#4
When are the aliens coming to collect the gold? On Earth, the application of gold is limited but human beings continue to love gold, mine gold, and stockpile gold. Are there other applications of gold that are beyond our intellect? Can it be used for advance technologies such as teleportation? As fuel or shield? Or something unimaginable?
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#5
This is why serious bullion investors generally prefer to save gold/silver in the form of coins rather than bars.

Although coins generally command a greater premium over the spot price, they are much more difficult to fake due to the way coins are minted.
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#6
Why not ETF or virtual with reputable bank account. Save the hassle.

Just my Diary
corylogics.blogspot.com/


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#7
Crooks are smart these days, everything can be faked, computers and precision machinery can do anything there are even fake antique coins around if that can happen how hard will it be to fake gold coins? Minting coins in tungsten metal then dipping them into gold? or gold plating them?
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#8
(19-09-2012, 04:33 PM)corydorus Wrote: Why not ETF or virtual with reputable bank account. Save the hassle.

Precious metals in bullion form are one of the rare assets with ZERO counter-party risk. So most serious long-term gold/silver investors (or rather savers) would NOT want to save their fiat currency in gold/silver via financial instruments that are prone to such risks.

The idea is that gold and silver can not only serve as an inflation hedge, but also as a systemic hedge against a fiat currency crisis (where financial instruments based on paper assets such as stocks, bonds will be severely affected).

Hardcore gold/silver bugs will tell you that their "investments" into gold and silver aren't truly investments, but rather by buying gold and silver, they are converting their fiat currency into real money.

(19-09-2012, 04:39 PM)sgd Wrote: Crooks are smart these days, everything can be faked, computers and precision machinery can do anything there are even fake antique coins around if that can happen how hard will it be to fake gold coins? Minting coins in tungsten metal then dipping them into gold? or gold plating them?

It's much harder to fake coins in precise detail because every type of coin have specific details and designs which are difficult to fake. For example, the depth of ridges, number of ridges, shape of design (maple leaves, american eagles, pandas, koalas etc.).

On the other hand, bars have more margin for error in the counterfeiting due to its limited design and engravings. And it's much easier to fill that huge block of mass (1kg, 100oz etc.) with tungsten compared to filling tiny (1/2 oz, 1 oz) coins with tungsten.
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#9
I guess another way is to buy one ounce bars- a bit more over the spot but its a bit more obvious

silver bars- probably smaller bars are safer too...
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#10
(19-09-2012, 04:45 PM)mysterion Wrote: It's much harder to fake coins in precise detail because every type of coin have specific details and designs which are difficult to fake. For example, the depth of ridges, number of ridges, shape of design (maple leaves, american eagles, pandas, koalas etc.).

On the other hand, bars have more margin for error in the counterfeiting due to its limited design and engravings. And it's much easier to fill that huge block of mass (1kg, 100oz etc.) with tungsten compared to filling tiny (1/2 oz, 1 oz) coins with tungsten.


A few years ago I read in magazine article how counterfeiters teamed up with rogue elements of starving KGB agents after the Kremlin collapsed bought vast quantities of $1 and shredded everything, washed bleached, recycled the paper and used it to print $20 greenbacks from it. And it "felt" like the real thing even fooled seasoned bank tellers who palm and handle money everyday.
http://www.cycleback.com/blacklight/currency.html

The point is not everybody is an expert when it comes to assaying their own gold even the experts are fooled most average investors won't have this kind of knowledge or skills and the crooks are betting on that.

one thing for certain gold testers could be flying off the shelves very soon.
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