EUROPEAN GOLD CENTRE
information on gold, other metals and international mining finance and investment markets
GOLDVIEW ALERT
WORTHWHILE READING
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April 2012
by
Gary Vey, editor viewzone.com
The first release of this story came on 4 December 2009, written by Dan Eden for Viewzone, a website that takes "a look at
life from different angles...." and comments on every possible subject that it finds worthwhile or necessary to comment on.
The man behind viewzone.com is Gary Vey, the editor, who happens to be the same man as Dan Eden. When I found this
updated version on the net, I was alarmed and upon reading it, I was impressed and shocked at the same time. But not
surprised because, as you could read in my March issue of GOLDVIEW, I signalled my doubts and questions about the
intervening policies and acts of the Federal Reserve in relation to gold and the gold market. As I found this story should be
read by much larger circles, I asked Gary for his permission to re-distribute it as an issue of GOLDVIEW ALERT.
I am pleased to be able to bring it to you.
Henk J. Krasenberg
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The information presented in this report is obtained from sources believed to be reliable but is not guaranteed either as to accuracy or completeness. The European Gold Centre
does not render investment advice and the contents of this report is not to be considered, and under no circumstances to be construed as, a recommendation or solicitation to
purchase of commodities and/or securities of the companies described or mentioned herein.
EUROPEAN GOLD CENTRE
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FAKE GOLD BARS IN FORT KNOX!
It's one thing to counterfeit a twenty or hundred dollar
bill. The amount of financial damage is usually
limited to a specific region and only affects dozens of
people and thousands of dollars. Secret Service agents
quickly notify the banks on how to recognize these
phoney bills and retail outlets usually have procedures
in place (such as special pens to test the paper) to stop
their proliferation.
But what about gold? This is the most sacred of all
commodities because it is thought to be the most trusted, reliable and valuable means of
saving wealth.
A recent discovery -- in October of 2009 -- has been suppressed by the main stream
media but has been circulating among the "big money" brokers and financial kingpins
and is just now being revealed to the public. It involves the gold in Fort Knox -- the US
Treasury gold -- that is the equity of our
national wealth. In short, millions (with an
"m") of gold bars are fake!
Who did this?
government.
Apparently
our
own
Background
In October of 2009 the Chinese received a
shipment of gold bars. Gold is regularly
exchanges between countries to pay debts and
to settle the so-called balance of trade. Most
gold is exchanged and stored in vaults under
the supervision of a special organization based
in London, the London Bullion Market
Association (or LBMA). When the shipment
was received, the Chinese government asked
that special tests be performed to guarantee
the purity and weight of the gold bars. In this
test, four small holed are drilled into the gold
bars and the metal is then analyzed.
Officials were shocked to learn that the bars were fake. They contained cores of
tungsten with only a outer coating of real gold. What's more, these gold bars,
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FAKE GOLD BARS IN FORT KNOX!
containing serial numbers for tracking, originated in the US and had been stored in Fort
Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz.
each, in the shipment!
At first many gold experts assumed the fake gold originated in China, the world's best
knock-off producers. The Chinese were quick to investigate and issued a statement that
implicated the US in the scheme.
What the Chinese uncovered
Roughly 15 years ago -- during the Clinton Administration [think Robert Rubin, Sir
Alan Greenspan and Lawrence Summers] -- between 1.3 and 1.5 million 400 oz
tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner
in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these
tungsten blanks received their gold plating
and WERE shipped to Ft. Knox and
remain there to this day.
According to the Chinese investigation, the
balance of this 1.3 million to 1.5 million
400 oz tungsten cache was also gold plated
and then allegedly "sold" into the
international market. Apparently, the
global market is literally "stuffed full of
400 oz salted bars". Perhaps as much as
600-billion dollars worth.
An obscure news item originally published in the N.Y. Post [written by Jennifer
Anderson] in late Jan. 04 perhaps makes sense now.
DA investigating NYMEX executive
Manhattan, New York, --Feb. 2, 2004. A top executive at the New York Mercantile
Exchange is being investigated by the Manhattan district attorney. Sources close to the
exchange said that Stuart Smith, senior vice president of operations at the exchange,
was served with a search warrant by the district attorney's office last week. Details of
the investigation have not been disclosed, but a NYMEX spokeswoman said it was
unrelated to any of the exchange's markets. She declined to comment further other than
to say that charges had not been brought. A spokeswoman for the Manhattan district
attorney's office also declined comment."
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FAKE GOLD BARS IN FORT KNOX!
The offices of the Senior Vice President of Operations -- NYMEX -- is exactly where
you would go to find the records [serial number and smelter of origin] for EVERY
GOLD BAR ever PHYSICALLY settled on the exchange. They are required to keep
these records. These precise records would show the lineage of all the physical gold
settled on the exchange and hence "prove" that the amount of gold in question could not
have possibly come from the U.S. mining operations -- because the amounts in question
coming from U.S. smelters would undoubtedly be vastly bigger than domestic mine
production.
No one knows whatever happened to Stuart Smith. After his offices were raided he
took "administrative leave" from the NYMEX and he has never been heard from since.
Amazingly, there never was any follow up on in the media on the original story as well
as ZERO developments ever stemming from D.A. Morgenthau's office who executed
the search warrant.
Are we to believe that NYMEX offices were raided, the Sr. V.P. of operations then
takes leave -- all for nothing?
The revelations of fake gold bars also explains another highly unusual story that also
happened in 2004:
LONDON, April 14, 2004 (Reuters) -- NM Rothschild & Sons Ltd., the Londonbased unit of investment bank Rothschild [ROT.UL], will withdraw from trading
commodities, including gold, in London as it reviews its operations, it said on
Wednesday.
Interestingly, GATA's Bill Murphy speculated about this back in 2004;
"Why is Rothschild leaving the gold business at this time my colleagues and I
conjectured today? Just a guess on my part, but [I] suspect something is amiss.
They know a big scandal is coming and they don't want to be a part of it... [The]
Rothschild wants out before the proverbial "S" hits the fan." -- BILL MURPHY,
LEMETROPOLE, 4-18-2004
What is the GATA?
The Gold Antitrust Action Committee (GATA) is an organisation which has been
nipping at the heels of the US Treasury Federal Reserve for several years now.
The basis of GATA's accusations is that these institutions, in coordination with
other complicit central banks and the large gold-trading investment banks in the
US, have been manipulating the price of gold for decades.
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FAKE GOLD BARS IN FORT KNOX!
What is GLD?
GLD is a short form for Good London Delivery. The London Bullion Market
Association (LBMA) has defined "good delivery" as a delivery from an entity
which is listed on their delivery list or meets the standards for said list and whose
bars have passed testing requirements established by the association and updated
from time to time. The bars have to be pure for AU in an area of 995.0 to 999.9 per
1000. Weight, Shape, Appearance, Marks and Weight Stamps are regulated as
follows:
Weight: minimum 350 fine ounces AU;
maximum 430 fine ounces AU, gross
weight of a bar is expressed in troy ounces,
in multiples of 0.025, rounded down to the
nearest 0.025 of an troy ounce;
Dimensions: the recommended dimensions
for a Good Delivery gold bar are: Top
Surface: 255 x 81 mm; Bottom Surface:
236 x 57 mm; Thickness: 37 mm;
Fineness: the minimum 995.0 parts per
thousand fine gold;
Marks: Serial number; Assay stamp
of refiner; Fineness (to four significant
figures);Year of manufacture (expressed in four digits).
After reviewing their prospectus yet again, it becomes pretty clear that GLD was
established to purposefully deflect investment dollars away from legitimate gold
pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination
for many of these fake tungsten bars where they would never see the light of day -hidden behind the following legalese "shield" from the law [Excerpt 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 standards for gold
bars delivered in settlement of a gold trade, or the London Good Delivery
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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."
Federal Reserve knows but is apparently part of the schema
Earlier this year GATA filed a second Freedom of Information Act (FOIA) request
with the Federal Reserve System for documents from 1990 to date having to do with
gold swaps, gold swapped, or proposed gold swaps.
On Aug. 5, The Federal Reserve responded to this FOIA request by
adding two more documents to those disclosed to GATA in April
2008 from the earlier FOIA request. These documents totalled 173
pages, many parts of which were redacted (blacked out). The Fed's
response also noted that there were 137 pages of documents not
disclosed that were alleged to be exempt from disclosure.
GATA appealed this determination on Aug. 20. The appeal asked for more information
to substantiate the legitimacy of the claimed exemptions from disclosure and an
explanation on why some documents, such as one posted on the Federal Reserve Web
site that discusses gold swaps, were not included in the Aug. 5 document release.
In a Sept. 17, 2009, letter on Federal Reserve
System letterhead, Federal Reserve governor Kevin
M. Warsh completely denied GATA's appeal. The
entire text of this letter can be examined at
http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf.
The first paragraph on the third page is the most
revealing: "In connection with your appeal, I
have confirmed that the information withheld
under exemption 4 consists of confidential
commercial or financial information relating to the operations of the Federal
Reserve Banks that was obtained within the meaning of exemption 4. This
includes information relating to swap arrangements with foreign banks on behalf
of the Federal Reserve System and is not the type of information that is
customarily disclosed to the public. This information was properly withheld from
you."
The above statement is an admission that the Federal Reserve has been involved with
the fake gold bar swaps and that it refuses to disclose any information about its
activities!
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FAKE GOLD BARS IN FORT KNOX!
Why use tungsten?
If you are going to print fake money you need to have the special paper, otherwise the
bills don't feel right and can be easily detected by special pens that most merchants and
banks use. Likewise, if you are going to fake gold bars you had better be sure they have
the same weight and properties of real gold.
In early 2008 millions of dollars in gold at the central bank of Ethiopia turned out to be
fake. What were supposed to be bars of solid gold turned out to be nothing more than
gold-plated steel. They tried to sell the stuff to South Africa and it was sent back when
the South Africans noticed this little
problem.
The problem with making goodquality fake gold is that gold is
remarkably dense. It's almost twice
the density of lead, and two-and-ahalf times more dense than steel.
You don't usually notice this because
small gold rings and the like don't
weigh enough to make it obvious,
but if you've ever held a larger bar of
gold, it's absolutely unmistakable:
The stuff is very, very heavy.
The standard gold bar for bank-tobank trade, known as a "London
good delivery bar" weighs 400 troy ounces (over thirty-three pounds), yet is no bigger
than a paperback novel. A bar of steel the same size would weigh only thirteen and a
half pounds.
According to gold expert, Theo Gray, the problem is that there are very few metals that
are as dense as gold, and with only two exceptions they all cost as much or more than
gold.
The first exception is depleted uranium, which is cheap if you're a government, but hard
for individuals to get. It's also radioactive, which could be a bit of an issue.
The second exception is a real winner: tungsten. Tungsten is vastly cheaper than gold
(maybe $30 dollars a pound compared to $12,000 a pound for gold right now). And
remarkably, it has exactly the same density as gold, to three decimal places. The main
differences are that it's the wrong color, and that it's much, much harder than gold.
(Very pure gold is quite soft, you can dent it with a fingernail.)
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FAKE GOLD BARS IN FORT KNOX!
A top-of-the-line fake gold bar should match the color, surface hardness, density,
chemical, and nuclear properties of gold perfectly. To do this, you could start with a
tungsten slug about 1/8-inch smaller in each dimension than the gold bar you want,
then cast a 1/16-inch layer of real pure gold all around it.
This bar would feel right in the hand, it would have a dead ring when knocked as gold
should, it would test right chemically, it would weigh *exactly* the right amount, and
though I don't know this for sure, I think it would also pass an x-ray fluorescence scan,
the 1/16" layer of pure gold being enough to stop the x-rays from reaching any
tungsten. You'd pretty much have to drill it to find out it's fake.
Such a top-quality fake London good delivery bar would cost about $50,000 to produce
because it's got a lot of real gold in it, but you'd still make a nice profit considering that
a real one is worth closer to $400,000.
What is going to happen now?
Politicians like Ron Paul have been demanding that the Federal Reserve be more
transparent and open up their records for public scrutiny. But the Fed has consistently
refused, stating that these disclosures would undermine its operation. Yes, it certainly
would!
UPDATE: Audit of Fed Reserve Amendment passes!
In an unprecedented defeat for the Federal Reserve,
an amendment to audit the multi-trillion dollar institution
was approved by the House Finance Committee with an
overwhelming and bipartisan 43-26 vote on a Thursday
afternoon despite harried last-minute lobbying from top
Fed officials and the surprise opposition of Chairman
Barney Frank (D-Mass.), who had previously been a
supporter.
The measure, cosponsored by Reps. Ron Paul (R-Texas)
and Alan Grayson (D-Fla.), authorizes the Government
Accountability Office to conduct a wide-ranging audit of
the Fed's opaque deals with foreign central banks and
major U.S. financial institutions. The Fed has never had
a real audit in its history and little is known of what it
does with the trillions of dollars at its disposal.
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FAKE GOLD BARS IN FORT KNOX!
The manufacture of fake gold bars goes back years and, because of this, it is not likely
that the originator of this scheme will ever be revealed or brought to justice. Meanwhile
the world is just beginning to learn that much of its national reserves of gold may be
fake. If more testing reveals that this gold was guaranteed by Fort Knox and the US
Treasury then perhaps they will demand an exchange for "real" gold -- wouldn't you?
This is all happening at a time when the US economy is at its lowest and most
vulnerable. The effects could be devastating.
Some investors are already selling gold commodities before these facts are widely
known. They are investing instead in silver -- the next best metal. This will
undoubtedly drive silver prices up.
According to Jim Willie, 24 year market analyst and PhD in statistics, "The bust
cometh, and it will be spectacular. The stories told in the press will be peculiar, since
not told objectively. The headlines might be a comedy, with phoney reports of foreign
subterfuge, when the perpetrators are home grown."
This is yet another story in the decline of America and capitalism -- a decline based on
greed, deception and fraud.
UPDATES:
Largest Private Refinery Discovers Gold-Plated Tungsten Bar
March 5, 2010 By Patrick A. Heller
The German television station ProSieben ran a news
story covering W. C. Heraeus in Hanau, Germany, the world's largest privately owned refinery.
In the story, Wilfried Härner, the head of the gold foundry, shows a 500 gram bar (16.0755 troy
ounces) received from an unidentified bank. The bar had the right physical dimensions to be an
authentic gold bar, but one of the Heraeus employees suspected something funny. After the bar
was cut in half, you can see that the inside is tungsten, with only a coating of gold on the outside.
You can watch this news story on You Tube, where it was posted February 28, at
http://www.youtube.com/watch?v=ZKczs-7BFRI.
Last fall, Rob Kirby of Kirby Analytics in Toronto reported that China's central bank had
discovered some 400-ounce gold-plated tungsten bars among those it had recently received from
bonded warehouses. It was later learned that at least four counterfeit bars were found and that all
had come from sources in the United States. As suspicions grow about counterfeit bars among
those held in bonded warehouses for delivery against either COMEX or London Bullion Market
Association contracts or shares of exchange traded funds, investors could panic. So, you can
understand that there has been almost a total blackout on news coverage on this story.
Gary Vey, editor viewzone.com
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by
Gary Vey
editor
First they ignore you,
then they laugh at you,
then they fight you,
then you win.
Contact details:
www.viewzone.com
________________________________________________________________
w i t h t h e c o m p l i m e n t s o f H e n k J. K r a s e n b e r g
EUROPEAN GOLD CENTRE
e-mail: europeangoldcentre@gmail.com
website: www.europeangoldcentre.com
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