If you have gold in your financial portfolio, beware of any holdings connected to Kingold Jewelry. It’s now at the center of a massive gold fraud scandal. And what adds another layer of intrigue is the company’s location, in Wuhan, China, which is the epicenter of the current pandemic.
The gold scandal is not connected to the pandemic, but is it creating new shockwaves connected to China. According to a report by Zero Hedge, 83 tons of fake gold were used to secure loans and insurance policies for Kingold. The gold is supposed to be worth 16 billion yuan or about 2.2 billion dollars but it was discovered that the gold bars were just gold-plated copper. It’s believed to be the biggest gold counterfeiting scandal in recent history.