Our deep thanks to M.D. for spotting this "little" story, because I suspect that there's much more lurking here than meets the eye, and I'll boil it down to a bit of a supremely wild and woolly high octane speculative thesis: (1) if you can have a hidden system of finance, reliant upon fraud, cooked books, outright theft, and re-hypothecation to infinity (and trust me, there's a relationship to Mr. Central Bankster's flirtations with infinite debt here), then (2) you can have fake gold standards.

"Say wha....?"  you might be asking. Patience, we'll get back to that. Here's the article from Reuters that M.D. spotted:

Exclusive: Fake-branded bars slip dirty gold into world markets

Now you might recall I've blogged several times about these "fake gold bar" stories, usually in connection with the discovery of gold-coated tungsten bars out of China, or in connection to gigantic billion-plus-dollar loans collateralized by fake gold (also out of China).  I mention all this because it provides a nifty context in which to weigh the current flight from the American dollar as more and more countries appear to be willing to entertain China's yuan as a basis of some sort of reserve currency... that's how bad America is being perceived right now if you're willing to trust a country where that sort of fraud and corruption takes place, and I suspect it's what happens when countries whose currency is a reserve currency weaponize that currency for the maintenance of a political policy narrative: trust in it quickly evaporates.  No surprise there.

But there might be something else going on. Consider the following from the article:

Gold bars fraudulently stamped with the logos of major refineries are being inserted into the global market to launder smuggled or illegal gold, refining and banking executives tell Reuters. The fakes are hard to detect, making them an ideal fund-runner for narcotics dealers or warlords.

In the last three years, bars worth at least $50 million stamped with Swiss refinery logos, but not actually produced by those facilities, have been identified by all four of Switzerland’s leading gold refiners and found in the vaults of JPMorgan Chase & Co., one of the major banks at the heart of the market in bullion, said senior executives at gold refineries, banks and other industry sources.

Four of the executives said at least 1,000 of the bars, of a standard size known as a kilobar for their weight, have been found. That is a small share of output from the gold industry, which produces roughly 2 million to 2.5 million such bars each year. But the forgeries are sophisticated, so thousands more may have gone undetected, according to the head of Switzerland’s biggest refinery.

But these are not your standard-issue fake gold bars with gold wrapped around an inert and relatively worthless metal like lead or tungsten. Oh no:

The counterfeits in these cases are subtler: The gold is real, and very high purity, with only the markings faked. Fake-branded bars are a relatively new way to flout global measures to block conflict minerals and prevent money-laundering. Such forgeries pose a problem for international refiners, financiers and regulators as they attempt to purge the world of illicit trade in bullion.

Ahh... so it's a way of disguising "conflict bullion"... I see.  Oh, but wait, maybe not:

High gold prices have triggered a boom in informal and illegal mining since the mid-2000s. Without the stamp of a prestigious refinery, such gold would be forced into underground networks, or priced at a discount. By pirating Swiss and other major brands, metal that has been mined or processed in places that would not otherwise be legal or acceptable in the West – for example in parts of Africa, Venezuela or North Korea – can be injected into the market, channeling funds to criminals or regimes that are sanctioned.

It is not clear who is making the bars found so far, but executives and bankers told Reuters they think most originate in China, the world’s largest gold producer and importer, and have entered the market via dealers and trading houses in Hong Kong, Japan and Thailand. Once accepted by a mainstream gold dealer in these places, they can quickly spread into supply chains worldwide.

Word of the forged bars began to circulate quietly in gold industry circles after the first half of 2017, when J.P. Morgan, one of five banks which finalize trades in the $10 trillion-a-year London gold market, found that its vaults contained at least two gold kilobars stamped with the same identification number, 10 people familiar with the matter told Reuters. Reuters couldn’t determine exactly where the vaults were.
The same identification number, huh? You don't say. But of course, according to the authorities, J.P. Morgan immediately alerted the authorities to the existence of the same identification number.
The whole fraud thing, you see, must be limited to Asia, and more particularly, to China.  The western financial system - well known for its standards of probity - would never engage in such practices...
... (Cough, hack, wheeze)... uh huh.
The article should give one pause about any move by central banks for "gold-backed" digital currencies for the simple reason that, unless the physical medium itself can be exchanged in normal transaction, bank gold can be melted down, re-stamped and re-numbered, any number of times, and each re-numbering can be entered on the books as a "reserve", on and on, until the supply of "paper gold" or in this case, "digital gold" is orders of magnitude higher than the actual physical gold it claims to represent.  Indeed that is already the case, and we may just have been given a glance into one of the mechanisms by which it has occurred.
In other words, don't think for a moment that the practice is limited just to China.  As the article itself hints, the practice is probably very wide spread, and very well-organized.
And, I strongly suspect, may be tightly connected to the emergence of the "fake gold standard" in recent discussions, particularly about digital "currencies".
Watch out for brokers pedaling bearer bonds...
And one more point: all this being said, isn't it interesting that with all the self-evident fraud in the system, and all the much-touted convenience of "digital" systems and a cashless society, that so many people still want to take little lumps of the yellow metal in their hands, and put it into other people's  hands in exchange for a house they just bought with it...
See you on the flip side...


Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".

No Comments

    • anakephalaiosis on March 30, 2022 at 4:07 am

      Way to go, Texas! Wild West in Russia! Cossacks are saddling up.

      This is gold rodeo, and communist are thrown face down, in the mud.

      Alex Jones is also ready to ride, starting his own mint memorabilia.

      I want golden Buffalo coins.

  1. johnycomelately on March 29, 2022 at 6:57 pm

    “Illegal gold.”

    Seems like the west is trying to quarantine monetary commodities from the southern masses, otherwise their fuedal tokens may lose value….

    • anakephalaiosis on March 30, 2022 at 3:42 am

      It was mostly hard work, and a dash of ingenuity, that made a light bulb, according to Edison himself.

      Gold is just a means, to measure fruits of labor, and fiat money is way to steal apples, by trickery.

      When man is happy in his work, he finds himself coworker in creation. Rebuilding the West is no problem.

      Growing plants toil in happiness.

  2. YM on March 29, 2022 at 2:44 pm

    Rule to go by – Don’t trust any “standards” forced on you by any entity that has no moral standards.

    • anakephalaiosis on March 30, 2022 at 2:20 am

      Moralist bureaucracy falls prey, to communist subversion. Conscience is vigilant, against wolves in sheepskin.

  3. Marco Fredriks on March 29, 2022 at 12:39 am

    Can we suspect North Korea to play a role into the refinery?

  4. Richard on March 28, 2022 at 7:31 pm

    Guess those who’ve invested in (hands-on tactile) gold recently will need to break out their 4,500-year-old touchstones of slate, feldspar might due in a crunch and start testing for purity based on that quick touch. Sure hope folks know the difference between fake, refined (but tampered with), and genuine Au since now there’s been doubt cast onto the end refiner’s and their integrity.

  5. marcos toledo on March 28, 2022 at 7:27 pm

    But this leaves a question do the State Alchemists have a Philosopher Stone that can turn base metals into Gold and are they using it?

    • Richard on March 28, 2022 at 7:33 pm

      They probably have a more reliable touchstone of hand-me-down slate several millennia old.

    • Robert Barricklow on March 28, 2022 at 8:54 pm

      Good one Marcos Toledo!
      I’ve wondered that myself.

  6. anakephalaiosis on March 28, 2022 at 5:13 pm

    There is calmness, in the eye of the storm, and one step, in whatever direction, will unleash the demons beneath the road. Europe will NEVER unite in a union, because war atrocities is a quick reminder, what fate politicians can expect, down the road. And then the feet dragging starts.

    Heathens don’t have morals, and they laugh, at Pope Satan and the great American moralists, pointing fingers. When great American moralists are shooting buffaloes, through train windows in the Ukraine, then there is neither common sense, nor restraint of instinct.

    Chief Seattle is a redskin, and yet he could well have been heathen in Europe, because his view of the world is the same, as Abram held in ancient times. The great American moralists must have gotten seasick, in their thinker, on their voyage to the New World.

    Perhaps the great American moralists suffer, from cutoff roots, and can’t find the compass in the sundial? What gold standard is for merchants, sundial is for farmers!

    32-point compass as epigenetic narrative:

    • anakephalaiosis on March 28, 2022 at 5:41 pm

      Ancient Scythians operated, as lone snipers, with hit and run tactic, ensuring their own escape, by Parthian shot technique, that allowed them to live, and repeat.

      It gradually diminished the Assyrian numbers, and that emboldened a coalition, with the Medes and the Akkadians, that brought down Nineveh, and changed history.

      Ancient Scythians entered Europe, as Saxons, and some haven’t changed through the ages, and have stood their ground, against empires of all sorts, because roots go deep.

      Heathens understand the Holy Writ, whereas Christians have brain fog, in their mental box.

  7. Robert Barricklow on March 28, 2022 at 12:31 pm

    Loved it!
    “Fake gold standards.[only markings fake/gold real]”!
    One would think that:
    Globalized Economies = Fraud$ R. US
    One would venture to conjecture:
    illegal gold industry = illegal drug industry[in some extraordinary measure].
    Another interesting conjecture become a twisting of an old W.C. Field joke;
    “Hey! Who put fake gold, in my fake gold!”

    All around the globe boxes of Wheaties are being shorted; chocolate bars are shrinking; laundry soap boxes are half full, at full price.
    “They” looked for something that could be rehypothecated;
    something cheap, easily copied, and controlled = digitized currency;
    then tied to a gold standard.[hint: A Godzilla Sized Fraud].

    Johnathan Swift would easily find a crack; to fit into these feuding times:

    • Robert Barricklow on March 28, 2022 at 12:45 pm

      Not the Lilliputians breaking eggs:
      from the top; vs. breaking eggs from the bottom, feud

      • anakephalaiosis on March 28, 2022 at 3:54 pm

        Scrambled eggs are diplomacy, in Lilliput, and the fire department is the local pub.

        With gold as legal tender, bars can be melted at the local mint, into species, stamped with coin images, like Mickey Mouse, Geronimo and Alex Jones etc.

        Today, weighing gold is easy, with precise electronic scales, compared to traditional balance scales.

        Paying gold at the pub is iconic.

    • Robert Barricklow on March 28, 2022 at 6:09 pm

      I wonder if there is another form of gold; closer in form, to a monatomic gold?
      A type that is tradeable, say in galactic parlance.
      A Cosmic Gold?

      Ironically, this may in living form, rather than mineral.
      Being that; a living universe, values life more?

  8. ragiza on March 28, 2022 at 11:15 am

    Gold has a similarity to fiat currencies: its value is based on people believing that it’s valuable. Without that, it would likely be selling somewhere around the price of silver, which is primarily an industrial material.
    There should have been record keeping as to the quantities of gold that the Nazis and the Japanese acquired. The lack of knowledge on this may have its own implications.
    I read somewhere that wampum wasn’t just any sea shell, it was the ones with some purple tinging.

  9. InfiniteRUs on March 28, 2022 at 11:14 am

    There is a movement beginning against private trades and ownership of gold and silver bullion. It’s a way around the cashless slave society envisioned by UN Tyrants and Neo-Monarchies. This may just be the creation of a fictional problem to justify an unpopular move against this growing trend.

    • InfiniteRUs on March 28, 2022 at 11:26 am

      Plus, if they can make all privately held gold bullion suspect and stop it’s trading and possession by the little guys it will drive down the demand for gold as a safe haven and scare the current holders into selling in mass before the new regulations devalue their holdings. Likely a move to drive down the spot price and destroy the efforts of those seeking a return to a gold standard or rely on gold to trade. There will be war over this.

      • Richard on March 28, 2022 at 7:35 pm

        . . . Been wondering about currency spoof’s, too, to cast doubt on current moneys.

    • Laura on March 28, 2022 at 3:01 pm

      Or, this fraud problem is a way to introduce and create a demand for better digital gold tracking systems. http://www.mintid.com. Microchip the bullion.

      “ MintID works directly with ISO: 9001 rated minting facilities to adhere an encrypted tamper proof microchip that gives each product a digital identity that cannot be duplicated.”

      • FiatLux on March 29, 2022 at 10:20 am

        Good point! They’ve talked about microchipping plants, animals, people, and nearly everything else on earth, so why not gold bullion?

        If this comes to pass, what will it do to the value of any remaining NON-microchipped gold (whether coins or whatever else)? Regardless of the official price of microchipped gold, I could see demand for the non-microchipped stuff getting even stronger — among the portion of the human race that still wants a normal medium of exchange that can’t be tracked, frozen, or disappeared at the touch of a button.

      • Danse on March 29, 2022 at 3:42 pm

        “Or, this fraud problem is a way to introduce and create a demand for better digital gold tracking systems”
        Laura, this has been my thought for a long time. Digital tracking or simply by a frequency detector set on gold, like the way the metal seekers on the beach find metals.

        With all these people I heard suggesting strongly to buy gold for future safety in apocalyptic times, I could not help thinking that if the predators of Man kind wanted to collect effortless most of the gold available in our homes, they just needed to come and take it wherever their sensors detect it.

        Another advantage of training people to believe “you will have nothing” and push them to amass gold in order to save their physical bodies from starving (?!) is to create an obsession on material value and anchor their minds deeper in materialistic (= robotic) thinking.
        Hunting and corralling minds.

  10. FiatLux on March 28, 2022 at 9:43 am

    This would be a mighty convenient way to bring some of Herr Bormann’s and General Yamashita’s gold out of the covert financial system and into the overt one, wouldn’t it?

    • Richard on March 28, 2022 at 7:38 pm

      . . . The Party of the east by going west still seems to want their gold back by proxy since they’ve assumed control in mainland China.

    • DanaThomas on March 29, 2022 at 7:17 am

      Precisely FiatLux, and there are apparently lots of “unreported” stashes around. Not to mention certain gold-backed bonds whose holders might feel they have waited long enough.

  11. anakephalaiosis on March 28, 2022 at 6:05 am

    Celluloid gold, from Hollywood Bank of cinematic derivatives, exchanges hands, at the box office, showing Nosferatu, on the big screen.

    Mesmerized, by fantasy figures, celluloid gold outshines reality. By hook, line and sinker, Ukrainians exchange Tzar gold, for celluloid gold.

    Escape artist Zelenski goes to Hollywood, to pull a circus Houdini, from a gas chamber – to join his criminal kosher Nazis – in a Marvel movie, because of six million whatever.

    Fool’s gold is loony bin currency:


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