The hollowed-out gold bar scam

You should not be able to peel 
the gold off a solid gold bar.

It's the kind of con game kids might imagine:
"What if you took real gold and coated something with it and sold it to someone like it was solid gold?" 
A jeweler in Manhattan named Ibrahim Fadl bought a 10-ounce bar of gold for $18,000 from someone he'd bought gold from before.

Since he'd heard rumors about fake gold bars, he decided to drill into the bar, and some others he owned, to make sure they were real.

That's when he discovered that $100,000 worth of his gold bars were fake.

Counterfeiters had taken real gold bars - which have serial numbers and papers that certify that the bar is real - and hollowed them out and replaced the gold with the metal tungsten.

The densities of tungsten and gold are similar, so weighing wouldn't reveal the fraud.

However, tungsten costs around $1 per ounce, while gold is over $1,700 per ounce.

The FBI is investigating.

Another scam involving a gold bar requires a more elaborate front end deception: How to seduce a victim with the gold brick scam, Deceptology>>

Fake gold bars turn up in Manhattan, MyFoxNY>>

2 comments:

  1. He might want to hang onto that tungsten, it might become valuable sometime soon.

    http://www.resourceinvestor.com/2012/06/12/why-warren-buffett-is-loading-up-on-tungsten

    ReplyDelete
  2. Here is chapter and verse on the scam and how it is done and how to prevent it - without destroying the gold bar.


    http://www.aegisjournal.com/asset-location-and-due-diligence-how-to-make-fake-gold/

    ReplyDelete

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