Part of China's gold reserves turned out to be fake

Chinese company Wuhan Kingold Jewelery – one of the largest gold processors in China – forged an 83-tonsupply of gold using gold-plated copper alloy.

Michael Wittmeyer, an expert at JMBullion, commented:

This is not surprising. In our business, most fakes come from China. They make copies of our products and sell these useless pieces of copper on the Internet for good money.

After the news was published, Kingold shares fell 25%, and the Shanghai Gold Exchange ceased cooperation with the company.

Two Wall Street firms have already begun investigating fraud. However, Kingold representatives deny the fact of the investigation and deny all allegations.

Experts believe that the uncovered fraud – this is just the tip of the iceberg. According to Wittmeyer, many more low-quality and counterfeit bars can be found in the gold reserves of Chinese banks.

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Based on materialseconomictimes.indiatimes.com