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83 tonnes of gold bars counterfeited by a Wuhan company


83 tonnes of gold bars counterfeited by a Wuhan company

83 tonnes of fake gold bars

As reported by the Chinese media Caixin on June 29, a company founded and operated in Wuhan received loans for more than 20 billion yuan ($ 2.8 billion) in the past five years from 14 Chinese financial institutions.

Reports indicate that at least 83 tonnes of gold bars were used as collateral and ultimately turned out to be gilded copper.

Wuhan Kingold allegedly contracted loans guaranteed by counterfeit gold to increase its liquidity and support its business operations. What is also surprising is that the insurance companies have agreed to cover the company and no one has verified the authenticity of the gold for years.

The humbly called society “A company with a golden future” is listed on Nasdaq. It is the largest gold company in the NYSE and has been marketing gold since 2002. In such a scenario, the 83 tonnes of counterfeit gold represent 22% of all gold produced in China every year. Gold that ultimately never existed.

Cannot Counterfeit Bitcoin

For supporters of Bitcoin, authentication problems with gold are a major argument against investing in or holding the precious metal.

A recent survey from the analyst Mati Greenspan revealed that BTC was by far the most popular investment choice. In fact, 43% of the 2,300 people surveyed selected Bitcoin for performance potential, while gold ranked second.

Summarizing the gold debate against Bitcoin in light of the scandal of Wuhan Kingold, the CEO of Parallax Digital, Robert Breedlove let hear that the choice would ultimately be obvious to the market:

“Bitcoin is more divisible, durable, recognizable and rarer than gold. Bitcoin is also cheaper to protect. (…) I wonder what choice the free market will make? “

👉 To read on the same subject: Is bitcoin a better safe haven than gold?

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About the Author : Florent David


I started to discover the basics of blockchain and Bitcoin technology with the publication of Satoshi Nakamoto: A Peer-to-Peer Electronic Cash System. The disruptive and controversial aspect of the subject quickly fascinated me!
All articles by Florent David.

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