Are We In The Midst of a Global Gold Scam?

By: Tom Chatham

When fiat money collapses, the world monetary system will be forced back into a gold backed currency. Those holding gold will have preserved their buying power and wealth while those who held paper assets will lose everything. Those holding gold will have opportunities and the ability to write their own destiny, but what if they discovered after the fact that most of their gold was fake? What if the millions of people that hold precious metals were in a position to force banks and governments to issue real currency but then lost that ability due to the false securities they held?

When the fiat currencies of the world revert to their intrinsic value of zero, those in control of the printing presses will have to overcome the peoples aversion to paper money. If a large enough segment of the population had the ability to shun a new paper currency it would limit the power of the banks and governments. To overcome this impediment to their printing of a new fiat currency, it would be necessary to eliminate the possession of precious metals in the population. The outright confiscation and outlawing of gold possession would be ineffective in most cases and would likely be met with widespread revolts from the people. So how would you take away their gold without causing a riot?

If the gold people thought they had turned out to be fake, the banks and the government would be off the hook and the people would not have the power they thought they were preserving. Even if some of the metals in private possession were real, it would be difficult to exchange them for fear of their authenticity by the receiving party. By flooding the market with fake bullion, only those that were in a position to verify the authenticity would be in a position to use it. This would preclude most of the general population.

In one bold move, the ability of people to use gold as currency once again would be destroyed and the banks and governments would retain the ability to force a new paper currency on the people thus ensuring their continued dominance. Let us take this one step further and imagine that a select group of people or countries are doing this not to their own citizens but to other world governments. When the fiat currency these governments use is reduced to zero and they attempt to create a new gold backed currency but find their gold is fake, what will the new currency be backed with that will make it acceptable to the world at large?

This lack of value will make these nations subordinate to those that have actual gold to back a currency and even subject to control by these nations or groups. Given that a lot of the gold in the world has been sold, leased, loaned and created out of thin air through the use of ETF funds, it is difficult to know exactly where all the gold currently is and who actually owns it. When the music finally stops, those that hold the actual gold will make the rules.

Fake gold coins have turned up in the U.S. over the last few years in the form of rare coins and bullion coins. Ten gold bars were recently found in Manhattan with tungsten cores. Fake gold bars and coins have been found in America, England, Germany, China, Ethiopia, South Africa, Vietnam and Australia. Germany has recalled some of their gold from New York and London to verify its authenticity and possibly for safe keeping. Venezuela has recalled its gold holdings from overseas vaults. Many countries around the world have been building up their gold holdings at a furious pace and China is recasting some of its gold into smaller ingots possibly to insure its authenticity and to back its currency. Some people have claimed that a lot of the gold in Fort Knox is fake which would be devastating for the U.S. if it ever had to back a new currency with gold.

Anyone who follows the gold market knows something insidious is taking place on a global scale and only time will tell what the ultimate plan is. For those buying gold, it is wise to buy from a reputable dealer who can verify its authenticity. Silver is a monetary metal similar to gold but on a smaller scale. Many of the things we see happening to gold will eventually happen to silver as the price increases and fiat money is devalued. Holding circulated pre ‘65 U.S. silver coinage may be the best defense against fakes but it is still no guarantee. Those seeking to preserve their wealth need to be vigilant in the coming years.


Posted on October 26, 2012, in Economics and tagged , , . Bookmark the permalink. 1 Comment.

  1. You can fake bars, using a tungsten core ( as the specific gravity of tungsten and gold are close ) and gold plating…..but faking gold coins is a lot easier to detect. Tungsten is very hard, doesn’t stamp well, so using it as a core in coins and then plating with gold doesn’t make a good, clear, crisp coin.

    The next method of faking coins is to mix the gold with some other base metal, making less than a 22k coin…but a good scale and a micrometer are your defense there. If the coin is the right size, but doesn’t weigh enough, it’s been faked. If the weight is right, then the size will be too big….again, a fake.

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