by TYLER DURDEN at zerohedge.com
Over the years, we have periodically reported (here, here, here, and here) of the occasional gold bar discovered as counterfeit, including gold-plated tungsten bars, but most (if not all) have been via third-party fraudsters.
‘This time is different’ however, as overnight reports via Australia’s ABC News claims that the historic Perth Mint is facing a potential $9 billion recall of gold bars after selling diluted or “doped” bullion to China and then covering it up, according to a leaked internal report.
Gold doping is a somewhat accepted practice in the industry and is not illegal, but is high risk for refiners, as it lowers the quality of bullion by adding impurities like silver or copper.
[ABC News] uncovered documents charting the WA government-owned mint’s decision to begin “doping” its gold in 2018, and then how it withheld evidence from its largest client in an effort to protect its reputation.
While the gold remained above broader industry standards, the report estimated up to 100 tonnes of gold sent to Shanghai Gold Exchange (SGE) potentially did not comply with Shanghai’s strict purity standards for silver content.
One Perth Mint insider, who asked not to be named as they could face five years’ jail if their identity is revealed, says it is a “scandal of the highest level”.