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Fake Gold Bar in Jewish Diamond/Gold District in New York City

Written by Gary North on September 20, 2012

The diamond district in New York City is run by a code of ethics like few other private markets on earth. Your word really is your bond. So, when a 10-ounce bar of tungsten is passed off as gold, this is news — if not in the mainstream media, then at least in the hard-money media. This is big news.

The victim is an expert. The bar was stamped with what looked like a legitimate ID. But he drilled it anyway. It was a counterfeit.

He thinks that this is a professional job by some sort of criminal syndicate. It was very well done. This means that the counterfeits have invaded highly sophisticated markets.

Note: the victim contacted the Secret Service. He took the loss. He did not patch this up and re-sell it. His word is his bond.

This news has of course slowed trade in gold bars in the district.

I favor gold coins over promises to store gold bars, at least for purchases of your first $10,000. The likelihood so far of a counterfeit is lower. The risk of detection makes it less profitable per trade to fake coins over 10-ounce bars. This does not mean that gold coins cannot be faked. But there is more profit in faking gold bars.

Buy coins from a dealer who has been around for a decade or longer.

Continue Reading on www.myfoxny.com

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4 thoughts on “Fake Gold Bar in Jewish Diamond/Gold District in New York City

  1. There was a story that broke in 2008 when a Chinese assayist hefted a gold bar that had been sent by the US in settlement and said it didn't "feel right". They cut it open and sure enough it had a tungsten core, which has a density similar to gold's. The serial number traced back to Fort Knox, so I guess "Goldfinger" wasn't just a spy novelist's pipe dream..

  2. There was a report that a firm had made 1.4 million tungsten ingots suitable for filling gold bars. They have been turning up all around the world. I hear a new report every couple months.

  3. Oy, such a headache I'm getting.

  4. Gene W 1938 says:

    It is like a parable of a briliant man who promised change … and people bought in … but only to find that he was Evil and Satanic in his heart and faith. Now after three years many are still blinded can't see his Evil, wicked heart and faith and they still trust him … but alas, most will see another less evil than he that may be elected and the people may have a slight reprive.

    The message should be, you better know what you are willing to die for and where you will spend eternity after you do!