Fake 400 troy oz Gold bars found...from central bank transfer to Hong Kong.

There are now reports of fake 400 oz gold bars in Oct. of this year.  The report from Hong Kong said that the bars were gutted and had tungsten inside instead.  The finger was first pointed at the Chinese for making the fake bars.  The Chinese have pointed the finger at the Clinton Administration for the problem. Saying that they gold plated tungsten blanks and sold them on the open market.  Many of these fake bars might possible be in the GLD ETF holdings!  Nice way to hide them!!

From the GLD Prospectus on page 11:

"Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of the gold bars allocated to the Trust in connection with the creation of a Basket. The gold bars allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for gold bars delivered in settlement of a gold trade, or the London Good Delivery Standards, the standards required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss."

 Tungsten is almost the same density and weight as gold at about $10 a lb.  This would make the fraud almost undetectable without an lab assay of the bar(s) in question.

The report says that possibilly up to 60 metric tons of 400 tr oz gold bars may be gold plated tungsten instead. There are betweeen 5,600 to 5,700 of the fakes 400 oz bars out there.

 http://news.goldseek.com/GoldSeek/1258049769.php    "Doing God's Work"