In the aftermath of Wednesday’s report of a tungsten filled 10 oz PAMP gold bar discovered in Manhattan, it appears we now have an epidemic on our hands, as the NY Post has just reported that a total of at least 10 tungsten filled gold bars have now been discovered in Manhattan.

The NY Post reports:

The Post has learned as many as 10 fake gold bars — made up mostly of relatively worthless tungsten — were sold recently to unsuspecting dealers in Manhattan’s Midtown Diamond District.

The price of gold has risen more than 600 percent since January 2000, while the S&P 500 index is down 0.6 percent over the same period.

The 10-oz. gold bars are hugely popular with Main Street investors, and it is not known how many of the fake gold bars were sold to dealers — or if any fake bars were purchased by the public.

 

Ibrahim Fadl, the dealer who originally discovered the tungsten filled gold bars apparently purchased 4 tainted bars:

One gold dealer discovered that four of the 3-inch-by-1-inch gold bars he bought — worth about $72,000 retail — were counterfeit.

“It has the entire street on edge,” said Ibrahim Fadl, 62, who has been the owner of Express Metal Refining, a Midtown gold-refinery business, for the last 11 years. “I and the others on the street work off of trust; now that trust is strained.”

Federal agents have discovered a 2nd dealer purchased 6 of the tungsten bars:
A second 47th Street refiner, who wished to remain anonymous, said he was burned recently when he bought six gold bars that turned out to be mostly tungsten, with just a gold veneer. He would not comment, though, on who sold him the bogus bars.

Photographic evidence of the gold wrapped tungsten:

 

 

 

For those who are not familiar with Rob Kirby’s 2009 work and fail to understand the significance of a mere 100oz of small gold bars filled with tungsten, the fact is that the discovery substantiates Kirby’s claim that over 60 TONS OF TUNGSTEN FILLED GOLD WERE DISCOVERED IN AN ASIAN DEPOSITORY IN 2009:

Tungsten Genesis

GOT SILVER??

  1. I’ll repeat, I would not be surprised if the Chinese had recently found tonnes of unexpected tungsten, and kept silent about it. Going a step further, finding the tungsten may have been a prime reason for them to audit and re-melt their gold into nice neat new bars, under their own supervision.
    Right now it seems Manhatttan dealers are suspect of 10oz bars. Would larger bars be drilled more frequently, deterring counterfeiters, or are they so priceless people won’t drill them in fear of what they’ll find?

    I would love a lot of gold to be found counterfeit, but such news won’t reach from thick walled underground vaults. They’ll keep it silent and consider it “even” with their supplier, whom they’ve messed with in their own little ways also.

  2. When pooring a bar, I suppose a well alloyed block of tungsten (exactly same density as gold) will just stay in place when dropped in a bar mold. If the mold is cooler than the melting point of gold, the tungsten core will not get to his the outers edge of the bar, as it’s already solidified. But hey, what do I know, I’ve held a gold coin all of once.

  3. I’ve thought for years that silver bars and gold bars could easily be filled and stamped with virtually worthless metal alloys. It wouldn’t take a rocket scientist to pull this off just a couple crooks familiar with making precision molds plus some basic knowledge of metallurgy.  Wallah, instant gold and silver bars manufactured like M&M Candy.  Nice shell on the outside but filled with something completely different on the inside.
     
     

    • The only thing that will be found inside Fort Know are empty spaces that doesn’t even contain tungsten-filled gold bars if there is ever a serious audit. :P
       

  4. Folks, I think what we have here is an Urban Legend……you know, don’t accept drug soaked business cards from people on the street type of thing.  
    in my line of work we often use ultrasonics to detect flaws, inclusions, delaminations and other defects.  The technology is now very affordable – for around $1000 you can pick up a very capable analyser and suitable transducer.  I’m sure any “reputable dealer” so equipped would have no problem picking out these fakes (yes the densities of gold and tungsten may be very close, but their elastic modulus or the speed at which sound travels through them….is very different).
    Personally I’m not worried by this…..I dont do gold bars and silver ones are hardly worth the effort to counterfeit (at the moment ;-) 
    If it does start to become a problem I will invest in one of these analysers (as I would expect any “reputable dealer” would) and offset the cost by offering to check other folks phyzz for them for a small fee.

    http://www.perthmintbullion.com/us/blog/blog/12-03-26/Fake_Bars_-_The_Facts.aspx

    http://www.goldmoney.com/gold-research/newsdesk/not-all-that-glitters-is-gold.html

    http://www.kks.com.au/products/ultrasonics/

    http://www.ndtsystems.com/index.html

    Keep stackin’
     

  5. That’s one more reason why you shouldn’t buy gold bars that weight more than one ounce. At least silver has uses so it won’t be ignored like gold because gold is simply bought, stored inside a vault and ignored.

  6. Is anyone else thinking what I am here?  How about if these counterfeit bars that are suddenly turning up in such numbers are being produced by TPTB to discredit the buying of physical gold?  Don’t spend your hard earned money on something that may be worthless, they trumpet, keep your fiat cash or buy stocks and bonds instead!  :-(

    I would not put it past them.  For a very small cost they can sew dissension in the ranks of all of us physical gold buyers.  If I was an elitist psycho control freak, this is EXACTLY what I would do.  And then, I would add the coup de grace and blame it on those known counterfeiters, the Chinese!  GRRR!
     

  7. You cant Tungsten fill a Gold coin, such as a maple, ’cause it will increase the thickness of the coin by a fraction of a milometer…  This is picked up easily on a FISCH (see)  http://www.fisch.co.za/   The coin will not pass through the slot you see.  Its much easier on a Gold bar because the thickness test is not used, only weight.  Most reputable bullion dealers use a Fisch or similar tool to check coins quickly for counterfeit, faster and more efficient than an Xray.   I agree with DOC and others, pay the little more on spot, and stack only coins, they are much harder to counterfeit.  Stay away from the big gold bars.

    • Funny tool that, but I am not going to rely on that for telling me whether a professional conman worked on my supposely gold or silver coin. It effectively tests for rough specific weight of a coin, but that means little.

  8. It’s a curious … ahhh … ‘coincidence’ that this … ahhh … ‘story’ hits the news on Saturday and the … ahhh … spot ‘price’ of paper gold gets severely hammered on the Monday morning Globex. Can we say … ahhh … ‘hit piece’ set up with planted … ahhh … ‘props’?
     
    Who benefits? Why, the very jewelers and their customers who unveiled the … ahhh … ‘fraud’. It would be an interesting ‘discovery’ to learn if they were among the low bidders on this morning’s open … don’t ya’ think?

  9. People, here is the take home message, only a fool would buy gold with this risk of being ripped off. Imagine spending all your savings on gold only to find the bars have tungsten. Invest in something more secure instead, like equities.
    by BS Artist, NY Post.

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