01 June 2011

Tungsten Bar Scam

I'm suspicious of tungsten gold bar stories. This story on fake bars in Vietnam confirms my suspicion.

It say that reports of fake bars caused a 50% drop in gold turnover, which reduced fiat inflation as it reduced the use of, and holding of, gold as money. As the story notes, previously "government agencies had to apply a lot of measures to stabilize the market. The State Bank of Vietnam had strenuously resisted with the criticism from the public when it was compiling the government decree [ie restrictions] on bullion gold trade."

Convenient. Remember this play book when you start to see stories about fake bars coinciding with high inflation/mass interest in precious metals.

2 comments:

Kid Dynamite said...

in yet another ironic twist, i get the distinct impression that gold bugs would incorrectly think that it was BULLISH of there were fake bars discovered - as that means there's even less real gold! of course, it also shakes the confidence of those holding and seeking to hold gold.

Gordon said...

I have no idea of the price of Tungsten now or in the future, but interesting contemporary fake Victorian sovereigns were made and distributed by the Spanish. They were gold-coated platinum.