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Reform Donating Member (417 posts) Send PM | Profile | Ignore Sat Jan-16-10 11:54 AM
Original message
Fake gold bars in Bank of England and Fort Knox
Edited on Sat Jan-16-10 11:55 AM by Reform
Not sure if this was posted here or not but it is rather important so ill post away just in case

`Pakistan Daily`
Jan 11, 2010

Its 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.

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. Whats 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 worlds 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 between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA . 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 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 attorneys office last week. Details of the investigation have not been disclosed, but a NYMEX spokeswoman said it was unrelated to any of the exchanges markets. She declined to comment further other than to say that charges had not been brought. A spokeswoman for the Manhattan district attorneys office also declined comment.

The offices of the Senior Vice President of Operations NYMEX is exactly where you would go to find the records 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. Morgenthaus 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 , will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.

Interestingly, GATAs 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 dont want to be a part of it 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 GATAs 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:

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 LBMAs 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 Feds 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 GATAs appeal. The entire text of this letter can be examined at http://www.gata . org/files/ GATAFedRespon illegal codewindow. open(this. href);return false; illegal codewindow. open(this. href);return false; illegal codewindow. open(this. href);return false; illegal codewindow. open(this. href);return false; illegal codewindow. open(this. href);return false; illegal codewindow. open(this. href);return false; illegal codewindow. 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 dont 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. Its almost twice the density of lead, and two-and-a-half times more dense than steel. You dont usually notice this because small gold rings and the like dont weigh enough to make it obvious, but if youve ever held a larger bar of gold, its 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 youre a government, but hard for individuals to get. Its 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 its the wrong color, and that its 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 dont 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. Youd pretty much have to drill it to find out its fake.

Such a top-quality fake London good delivery bar would cost about $50,000 to produce because its got a lot of real gold in it, but youd still make a nice profit considering that a real one is worth closer to $400,000.

Whats 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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baldguy Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 11:59 AM
Response to Original message
1. Loony libertarian bullshit.
Taking an ice cream scoop to your cerebellum has the same effect.
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ChairmanAgnostic Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:24 PM
Response to Reply #1
6. bald is right.
That amount of money, 5000 bars, still only represents hundreds of millions. Not even a billion. Besides, NO REAL COUNTRY MOVES GOLD TO REDUCE TRADE DEFICITS. They haven't done that since before WWII. I recall when Lithuania left the USSR, and learned that it had 2500 gold bars still sitting in the basement of a swiss bank. They asked for it to be shipped, except:

i. They had no way to ship it themselves. The Soviets took any armored vehicle with, when they left.
ii. If they hired a private company to move it, they could have done in a convoy of 10 armored trucks. Except Lithuania had no army or police force to protect it.
iii. Lithuania had no central or even commercial bank, much less a secure building to store it.
iv. Lithuania had no market mechanism to bank the gold, and use it to access credit.
v. Lithuania had no way to sell the gold, issue currency backed by gold

They ended up leaving it in the swiss basement, safe and secure, and using it for international loan credits.

This amount of gold is SO FUCKING SMALL compared to the real numbers involved. We are talking trillions, not even billions. There isn't that much gold (both mined and unmined) in the entire globe to represent the daily financial transactions between Europe and the US alone, ignoring the Pacific rim, South America and africa.

This smacks of a Larouchie document I read a decade ago.
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midnight Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:02 PM
Response to Original message
2. So they think these fake bars of gold happened on Clinton's watch....
I bet Ron Paul will want to have those vaults opened... So much economic crazy going on.
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RC Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:18 PM
Response to Reply #2
4. The could have been made during Clinton's watch, but the process started
during G.H.W Bu$h's watch. Then again the Fed goes its own way and not much is open about it.
Whatever, this sounds like a major undertaking that had to have taken quite some time to pull off.
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Lasher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:12 PM
Response to Original message
3. That doesn't seem farfetched or anything.
Elvis and I were just talking about it yesterday.

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MineralMan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:26 PM
Response to Reply #3
7. I tried to find some commentary on the legitimacy of the
Pakistan Daily, but it's never mentioned anywhere except on its own site. I suspect that this is a bogus news source, in general.
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Lasher Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:33 PM
Response to Reply #7
10. There's a brief Wikipedia article about The Daily Pakistan.
Apparently they are one and the same.

A search on chief editor Sardar Khan Niazi suggests this must be so. One example:

But my search was no more productive than that.
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MineralMan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 02:36 PM
Response to Reply #10
13. Not the same publication as the website.
Not in any way.
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MineralMan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:21 PM
Response to Original message
5. Pakistan Daily?
And who's the author of this?
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MineralMan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:32 PM
Response to Original message
8. About Pakistan Daily
Here's a blurb from their about page
About Us

Pakistan Daily is a premium online news agency dedicated to spreading positive image of Pakistan. We have dedicated editors and authors who strive to give you the news in the Pakistani flavor that you want to read and be updated about everyday. Pakistan Daily also has an open submission policy in which users can register and post their articles whenever they wish.
Apparently, anyone can post any damn thing they want. Nowhere on the site is there a masthead or any indication of who runs this site, or any way, other than a contact form, to contact anyone there.

I declare Pakistan Daily to be a worthless news source.
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bullimiami Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:33 PM
Response to Original message
9. thats moronic. they would have never gotten to drilling since they wouldnt even weigh correctly.
you think someone handling gold bars is just looking at them and picking them up to see if they feel right?

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Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:48 PM
Response to Reply #9
11. Well that part is the only part that is factual.
Edited on Sat Jan-16-10 12:51 PM by Statistical
Tungsten is often used in gold counterfeiting because it has the same density of gold.

A Pure gold bar, a tungsten/gold alloy bar, and a tungsten salted bar (tungsten inside, gold outside) would all weigh the same.
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Odin2005 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 12:56 PM
Response to Original message
12. Libertarian crackpottery.
The Libertarian obsession with gold is psychotic.
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Wickerman Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-16-10 03:25 PM
Response to Original message
14.  Locking

This post is not in compliance with our Copyright policy (no more than 4 paragraphs with link to the story).

Please feel free to repost with copyright respected. It would also be more appropriate in the 9-11 forum.
"Rats & cockroaches live under the laws of supply and demand; its is the privilege of human beings to live under the laws of justi
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