Macro Moves

Gold Fraud in China!

Created on 02 Jul 2020

Wraps up in 2 Min

Read by 7.8k people

Updated on 10 Sep 2022

Ethics, fair practices, and character, these are certain things that China has never maintained it. China has relied on counterfeiting, conservatism, and unfair practices to achieve the superpower status of the world. At this time, China is facing a rant from all across the world (except Pakistan and North Korea) for its role in causing the pandemic but, it looks like China still hasn’t learned its lesson and is still the Dog’s tail. In fact, China is audaciously getting involved in proxy wars and trying to exploit the declining world economy.

Recently, something happened, which simply affirmed that there’s no limit to China’s counterfeiting nature. We are referring to the fake gold reserves! Yes, more than 4% of Chinese gold reserves could be fake, and this is being referred to as the biggest gold fraud in recent history. There’s one more coincidence; this scandal has taken birth in Wuhan. Rings a bell? Yes, it’s the same Wuhan that is being blamed for the genesis of Coronavirus. By the way, the gold fraud has many aspects to it.

What’s the Matter?

Sometimes, this question struck my mind hard that whatever China shows off, is it completely real or there’s a catch to it? The recent Gold fraud has answered this question to some extent. Kingold, one of the largest gold mining companies in China, had deposited 83 tons of fake Gold. This is roughly equal to 22% of China’s annual gold production and, as told earlier, about 4% of its gold reserves. The report which reported this scandal has assumed that no other Chinese company is involved in such a practice. Which simply means that more layers of this scam could be unearthed.

China has grown leaps and bounds in the past few decades as a manufacturing hub of the world. Its economy has progressed so much that it was directly competing with the US as a superpower in the world. But, controversies never left China, and the world was always thinking just one thing “what’s going on?” Besides thinking, the world couldn’t do anything because China doesn’t release its data publicly. It only tells the world what it wants to.

Coming to the economic part of it, gold reserves affect a country’s economy. The stronger gold reserves mean a stronger value of the currency. This is because Gold is standard across the world and is used for benchmarking. Governments need to keep gold reserves to control inflation. Given all this, it is needless to say that gold reserves are quite essential, and goof up in maintaining them can have national level repercussions. China is undoubtedly in for a roller coaster ride with this gold scandal. But, the actual effect of the same will only be visible in the near future for which we’ll have to wait and watch.

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Rishika Mukherjee

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Mukherjee is an avid reader and loves to write as much as read. She is the youngest of all but handles chores like a 50-year-old woman. She takes a lot on her plate and somehow, eerily manages to get the job done. As Hazel Grace stated, she could read a good author's grocery list, and so would Miss Mukherjee. 

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