Protect Yourself From Fraudulent Gold Bars

Refining and banking executives reported back in August, that laundered, smuggled, or otherwise illegal gold has been finding its way into the vaults of world banks, in the form of gold bars with the fraudulently stamped logos from all four of Switzerland’s leading gold refineries. Some of the largest domestic discoveries occurred in the vaults of J. P. Morgan Chase & Company. At that time, about 1,000 of the fraudulent bars had been discovered worldwide, but that number may have doubled since. The kilobar is considered the “standard” bar and weighs 1,000 grams. However, due to the tremendous sophistication and high quality of the “fake” kilobars, the head of Switzerland’s biggest refinery has suggested that thousands more may have gone undetected.

Fake gold bars, made of cheaper metal plated with gold, are relatively common in the industry and often easy to detect. The current discoveries of “fake” gold bars are, in fact, real gold with very high purity and only the refinery’s markings are faked. Rising gold prices combined with a looming global recession has triggered a boom in informal and illegal mining. Without the stamp of a recognized and prestigious refinery, such gold would be forced into underground networks, or priced at a discount. Michael Mesaric, Chief Executive Officer at industry-respected Valcambi, reported that a couple thousand bars have been discovered, but the likelihood is that there are ‘way, way, way more still in circulation. And it still exists, and it still works.’

Nothing has been proven about the source of the fraudulent bars, but industry executives believe that China may have permitted entrance to the market through dealers and trading houses in Hong Kong, Japan, and Thailand. By successfully pirating Swiss and other major brands, metal that has been mined or processed in places not legal or acceptable in the West, can quite possibly get top dollar, while channeling funds to criminals or sanctioned regimes. Because once the bars are accepted by a mainstream dealer, they can quickly flow into recognized supply chains worldwide. This is just one more reason to do business with reputable and recognizable precious metals dealers, who verify and stand behind every transaction.

The popularity of Gold IRA’s are increasing daily and by enlisting the services of an experienced Gold IRA broker, like American Bullion, you are provided an extra layer of protection, by virtue of the large insurance policy required and provided by a NASDAQ-trusted holding depository, like the Delaware Depository, as well as the accompanying registration and validity inspection each product receives upon arrival, meaning once accepted it’s guaranteed to be the named product and fully insured by Lloyd’s of London. In addition, by taking advantage of Congress-approved Proof American Eagles in your IRA, whether gold or silver, you not only receive world’s number one coins, but you also receive Certificates of Authenticity with each coin, provided by the U.S. Mint. Don’t settle for anything less than the best while having a peace of mind.

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.