Mystery of $2bn of loans backed by fake gold in China
By GCRU Gold News on Monday, June 29 2020, 09:18 - Permalink
More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.
What could go wrong?
Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper.