Roby Kirby has a report on a new scam that has been uncovered in the gold business (http://www.marketoracle.co.uk/Article14996.html ).
The idea is you cast the gold bar around a bar of Tungsten which has a specific gravity 1% more than gold; then sell it as the real thing.
That’s not a new idea, I heard of that scam twenty years ago when people were casting gold around lead bars (56% the specific gravity of gold).
That worked great when the people who were using the gold as collateral didn’t have the sense to work out the specific gravity and just weighed the stuff in; like for example a bank taking the gold as collateral against a loan which was what happened in the scam I heard about.
But Tungsten is a new twist, particularly if you add a strip of lead for example you can get the specific gravity perfect; then the only way to tell is to drill the bars.
Incidentally plutonium has a specific gravity 2% more than gold, and the radioactive stuff works fine since the gold will shield against the radioactivity emitted by the plutonium (over a long period of time the gold will become radioactive, but that’s measured in years – although perhaps it’s not a bad idea to check that gold necklace you bought for Mary Lou with a Geiger counter).
Now there’s a perfect scam, cast nuclear waste in gold, then store it in a vault deep underground, and it will be worth its weight in gold, literally!!
I wonder, could it be that the “professionals” got caught by a simple scam like that?
Hard to believe, just as it was hard to believe that all those “professionals” would value toxic assets at twice what they were really worth, just like gold bars with radioactive plutonium hidden inside.
Of course if you have someone on the “inside” well that makes everything run a whole lot smoother, like a Government Certified “quality control” agency that stamps AAA on them.
I just wonder what that scam might do for the gold market, if it is more prevalent than everyone thinks?
What that would mean is that the price of “real gold” would go up, after a period of uncertainty when no one would want to own gold unless they could be sure it was not “toxic”.
Like what happened with securitized debt, and as we speak, the only people who are buying that is the Fed!
They will buy anything at “face” apparently, or more likely use it as collateral for loaning money at 0% interest so that the “chosen few” can use the money to speculate….on the gold market for example.