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Tungsten-Filled 10 Oz Gold Bar Found In The Middle Of Manhattan's Jewelry District

Tyler Durden's picture




 

It is one thing for tungsten-filled gold bars to appear in the UK, or in Germany: after all out of sight, and across the Atlantic, certainly must mean out of mind, and out of the safe. However, when a 10 ounce 999.9 gold bar bearing the stamp of the reputable Swiss Produits Artistiques Métaux Précieux (PAMP, with owner MTP) and a serial number (serial #038892, likely rehypothecated in at least 10 gold ETFs across the world but that's a different story), mysteriously emerges in the heart of the world's jewerly district located on 47th street in Manhattan, things get real quick. Moments ago, Myfoxny reported that a 10-ounce gold bar costing nearly $18,000 turned out to be a counterfeit. The discovery was made by the dealer Ibrahim Fadl, who bought the PAMP bar in question from a merchant who has sold him real gold before. "But he heard counterfeit gold bars were going around, so he drilled into several of his gold bars worth $100,000 and saw gray tungsten -- not gold. The bar was filled with tungsten, which weighs nearly the same as gold but costs just over a dollar an ounce."

What makes so devious is a real gold bar is purchased with the serial numbers and papers, then it is hollowed out, the gold is sold, the tungsten is put in, then the bar is closed up. That is a sophisticated operation.

 

MTB, the Swiss manufacturer of the gold bars, said customers should only buy from a reputable merchant. The problem, he admits, is Ibrahim Fadl is a very reputable merchant.

 

Raymond Nessim, CEO Manfra, Tordell & Brookes, said he has reported the situation to the FBI and Secret Service.

 

The Secret Service, which deals with counterfeits, said it is investigating.

And cue panic on the realization that virtually any gold bar in the world, not just those in Europe and Australia, which have already had close encounters with Tungsten substitutes, but also New York may be hollowed out and have a real worth of a few dollars max. Which, sadly, is fitting considering our main story from last night was the realization that an unknown amount of Chinese iron ore had either never existed or had simply vaporized, and was no longer serving as the secured collateral to various liabilities circulating in the electronic ether. After all, only the most naive out there could conceive of gold being sacrosanct when every other asset class is being diluted to infinity by a regime that has long since run out of money.

As for gold-based transactions on West 47th street: look for that market to grind to a halt at least for as long as it takes for this scandal to be forgotten too.

The only open question remaining will be how much of the gold located 90 feet below Libert 33 is in the same Tungstenized format. For what it's worth: it is unlikely we will ever find out.

This is what glaring gold counterfeiting looks like.

And for the reading challenged:

New York News | NYC Breaking News

All that said, with false flags rampant these days, we would not be surprised if this is merely yet another attempt to discredit gold, this time physical, as an undilutable medium of warehousing wealth. So buyer beware: in a time when everyone is broke, triple check before exchanging one store of wealth for another.

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Tue, 09/18/2012 - 20:45 | 2809164 Aziz
Aziz's picture

9 ounces of fine tungsten.

How many ounces of fine tungsten in central banks and treasuries?

Tue, 09/18/2012 - 20:52 | 2809200 redpill
redpill's picture

This is why coins have a bigger spot premium.

Silver American Eagles look pretty sweet.

Tue, 09/18/2012 - 21:13 | 2809286 Turd Ferguson
Turd Ferguson's picture

Gee, I wonder what Christian and Nadler will have to say about this. 

Tue, 09/18/2012 - 21:16 | 2809307 Dr Benway
Dr Benway's picture

This is scary. You know what they say about cockroaches, right?

Not sure what Australia has got to do with this though?

ABC gold just passed on the message about the last fake bar.

Tue, 09/18/2012 - 21:23 | 2809325 glenlloyd
glenlloyd's picture

it looks like it was supposed to be a foil covered chocolate treat...

Tue, 09/18/2012 - 21:27 | 2809342 Alpo for Granny
Alpo for Granny's picture

Mmmmmmmmm. Chocolate.

Tue, 09/18/2012 - 21:31 | 2809355 Turd Ferguson
Turd Ferguson's picture

And why alert the Secret Service if gold isn't money??

Tue, 09/18/2012 - 21:41 | 2809391 TheFourthStooge-ing
TheFourthStooge-ing's picture

In addition to investigating counterfeit Federal Reserve Notes (which I hesitate to call real money), the Secret Service also investigates credit card fraud.

Since they investigate the fake and fraudulent "not money" mentioned above, gold would probably also fall into this category (even though we know that gold is indeed real money).

Tue, 09/18/2012 - 21:42 | 2809399 francis_sawyer
francis_sawyer's picture

The counterfeit gold bars will be blamed on the Iranians in 5...4...3...2...

Tue, 09/18/2012 - 21:54 | 2809413 TheSilverJournal
TheSilverJournal's picture

If all currency is counterfeit, then real money is not currency.

Tue, 09/18/2012 - 22:11 | 2809503 HoofHearted
HoofHearted's picture

Come now, the US makes some real money. I've got tubes of ASEs and AGEs myself. (Do we need to check these??? Oh crap.)

Tue, 09/18/2012 - 22:20 | 2809534 NuckingFuts
NuckingFuts's picture

Ya can't eat tungsten.

Tue, 09/18/2012 - 22:27 | 2809559 CClarity
CClarity's picture

Gonna spook some investors real good!  State Street better have the real McCoy for old GLD.

Tue, 09/18/2012 - 22:31 | 2809570 jeff montanye
jeff montanye's picture

don't think too many believe gld has the real mccoy.  is this news another reason to consider the shares of gold (and silver) mining companies?

Tue, 09/18/2012 - 23:36 | 2809741 nope-1004
nope-1004's picture

Why does a barbarous relic need to be pilfered like that?  Why go through all the trouble if it's not valued?  I don't get it..... after listening to people like Buffet and Munger.

This proves 2 things:

1)  Gold is REAL money, fiat is not.

2)  Gold is REALLY scarce, considering it has been rehypothecated.

 

 

Wed, 09/19/2012 - 00:10 | 2809815 Thomas
Thomas's picture

That tinfoil version would, in my best guess, lack the "ring" that a gold bar has. I think it would thud.

Wed, 09/19/2012 - 00:15 | 2809827 Paul Bogdanich
Paul Bogdanich's picture

Forget the Au (gold) I will take all the W (Wolfram a.k.a tungsten) you have to sell at $1.00 an ounce.  Whomever wrote that article or headline does not know the relative cost of their metals.  True Wolfram costs less than $1,700 an ounce but much more than $1.00. 

Wed, 09/19/2012 - 04:40 | 2810101 zhandax
zhandax's picture

Regardless of content, you will not get much 'ring' from something housed in a plastic assay pack.   For that matter, there is .7 troy ounce difference in the weight of 10 troy ounces of gold and 10 troy ounces of tungsten.  Make an allowance for the gold wrapper, and there is still an easily measurable difference.  Either we have a sloppy 'reputable' NY gold dealer who can smile on video after getting fucked out of $100,000, or this story is pure propaganda.

Wed, 09/19/2012 - 07:36 | 2810253 nedwardkelly
nedwardkelly's picture

there is .7 troy ounce difference in the weight of 10 troy ounces of gold and 10 troy ounces of tungsten

What am I missing here?

Assume you mean there's a 0.7 troy ounce difference in the weight of 10 troy ounces of golf, and the same VOLUME of tungsten?

Wed, 09/19/2012 - 07:54 | 2810271 SWRichmond
SWRichmond's picture

TPTB trying to scare the sheep back into their "reliable" paper products.

Wed, 09/19/2012 - 11:26 | 2811046 FeralSerf
FeralSerf's picture

10 troy ounces of anything is still 10 troy ounces.  There is no difference in weight between 10 troy ounces of gold and 10 troy ounces of tungsten.

If, on the other hand you are claiming that the volume of 10 troy ounces of gold is different than that of 10 troy  ounces of tungsten, you are correct, but the difference is much smaller than you suggest.  Gold's density is 19.30 gm/cm3.  Tungsten's density is 19.25 gm/cm3, only 0.26% different.   10 troy ounces of gold occupies a volume of 16.116 cm3.  16.116 cm3 of tungsten weighs 310.236 gms or 9.974 troy ounces.  The difference is only 0.0259 troy ounces.  While it is not difficult to measure weight to a high precision, the high precision measurement of volume is quite another matter.

It is possible to include a small amount of osmium or iridium, which are denser than gold, in the tungsten to make the density match gold's density.  Osmium and iridium are both rare and expensive.

http://en.wikipedia.org/wiki/Gold

http://en.wikipedia.org/wiki/Tungsten

Wed, 09/19/2012 - 16:43 | 2812792 Deliverator
Deliverator's picture

If, on the other hand you are claiming that the volume of 10 troy ounces of gold is different than that of 10 troy  ounces of tungsten, you are correct, but the difference is much smaller than you suggest.  Gold's density is 19.30 gm/cm3.  Tungsten's density is 19.25 gm/cm3, only 0.26% different.   10 troy ounces of gold occupies a volume of 16.116 cm3.  16.116 cm3 of tungsten weighs 310.236 gms or 9.974 troy ounces.  The difference is only 0.0259 troy ounces.  While it is not difficult to measure weight to a high precision, the high precision measurement of volume is quite another matter.

 

Add in casting variations, and you can easily negate any measured volumetric difference.

Tue, 09/18/2012 - 22:35 | 2809577 BKbroiler
BKbroiler's picture

fuck em.  the heebs on 47th give the worst deals in manhattan if you sell them your gold, even chinatown is better and that's saying a lot. 

Wed, 09/19/2012 - 06:55 | 2810205 ParkAveFlasher
ParkAveFlasher's picture

After this comment, there is nothing more of value that can be added.  Yids are all pissy that the Russians just have the diamond mother lode in Siberia and are trying to "disparage" gold.

Tue, 09/18/2012 - 22:32 | 2809578 CompassionateFascist
CompassionateFascist's picture

Still, that particular bar is worth more than all the Gold in Fort Knox.

Wed, 09/19/2012 - 01:34 | 2809743 TruthInSunshine
TruthInSunshine's picture

Ahhhh...interesting times....interesting times.

This incident indirectly prompted me to recall the recent seizure of a few TRILLION in alleged counterfeit U.S. Bonds.

 

All the world is a stage, bitchez. Abracadabra!

 

$6 Trillion in Fake US Bonds Seized by Italian Police

 

Or this:

 

 

 

Wed, 09/19/2012 - 04:31 | 2810095 Uber Vandal
Uber Vandal's picture

Re: Chicago Fed Crates:

The tip off on the crate not being genuine is the US flag on the left of crate.

In 1934, the US flag had 48 stars. Not until 1960 were there 50 stars.

Otherwise, someone did a great job of "antiquing" the crate.

Wed, 09/19/2012 - 09:53 | 2810756 MachoMan
MachoMan's picture

Goddamnit, don't shit on their conspiracy parade...  The secret service agent I talked to said the same thing...  I realize that these people are trained to be liars, but I tend to have a fairly good idea when people are fibbing, even a little.  He seemed trustworthy on this particular issue.

If that's not true then what about all of this dragon family and its secret winning lawsuit at the hague and *head explodes*

Wed, 09/19/2012 - 10:51 | 2811074 FeralSerf
FeralSerf's picture

It's all part of the Yamashita-Black Eagle Trust gold conspiracy.

Wed, 09/19/2012 - 00:01 | 2809797 Sam Clemons
Sam Clemons's picture

But you can trick people into believing its edible gold.

Tue, 09/18/2012 - 22:40 | 2809602 gunsmoke011
gunsmoke011's picture

No - This has George Bush's Fingerprints All Over it

Tue, 09/18/2012 - 22:47 | 2809622 flacon
flacon's picture

Who is George Bush?

Tue, 09/18/2012 - 23:14 | 2809673 Spastica Rex
Spastica Rex's picture

Ronald Reagan's VP.

Wed, 09/19/2012 - 10:58 | 2811103 FeralSerf
FeralSerf's picture

Wouldn't that be the same as the Acting President, at least after his boy Hinckley (apparently with help from unknown others) shot Reagan two months into his first term?

Wed, 09/19/2012 - 06:51 | 2810200 jus_lite_reading
jus_lite_reading's picture

I believe this is about to go much further...

Shit, meet fan. Fan, shit...

The global ponzi is about to implode!!

Tue, 09/18/2012 - 21:48 | 2809418 TonyCoitus
TonyCoitus's picture

Tungsten, bitchez!

Tue, 09/18/2012 - 22:42 | 2809609 chiswickcat
chiswickcat's picture

yip, time to go long Tungsten.

Tue, 09/18/2012 - 21:44 | 2809405 ArrestBobRubin
ArrestBobRubin's picture

Umm, 'cause you need a whore?

Tue, 09/18/2012 - 21:53 | 2809441 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Umm, 'cause you need a whore?

But the government officials said what happened in Colombia was an insulated isodent.

Tue, 09/18/2012 - 22:26 | 2809538 akak
akak's picture

I must applaud your consistent and steadfast anti-semanticism.

US linguisticitizenism nature is eternal.

Tue, 09/18/2012 - 22:51 | 2809628 TheFourthStooge-ing
TheFourthStooge-ing's picture

The US of Americanism linguisticitizenismistic symbols and signs of anti-semiotic blobbing up cannot be offuscated by the talking mouths of fabled past monolizing the speeching means.

Tue, 09/18/2012 - 23:20 | 2809695 Glasshopper
Glasshopper's picture

+1

 

for using the word 'and'

Tue, 09/18/2012 - 23:40 | 2809755 francis_sawyer
francis_sawyer's picture

conjunction junction what's your function?

Tue, 09/18/2012 - 23:55 | 2809771 akak
akak's picture

TheFourthStooge-ing said:

The US of Americanism linguisticitizenismistic symbols and signs of anti-semiotic blobbing up cannot be offuscated by the talking mouths of fabled past monolizing the speeching means.

You forgot to mention the eternal nature of US American citizenism citizens as parangongs of blobbing-uppityness and consumptionalizationizingisticalism.

Wed, 09/19/2012 - 00:07 | 2809810 TheFourthStooge-ing
TheFourthStooge-ing's picture

I know, but I was trying to keep it simple. Think of it as an exercise in syllabic austerity.

Wed, 09/19/2012 - 00:31 | 2809864 akak
akak's picture

Make me laugh!

Wed, 09/19/2012 - 00:22 | 2809847 natty light
natty light's picture

Southernplayalisticadillacmuzik

Wed, 09/19/2012 - 08:05 | 2810308 Hey Assholes
Hey Assholes's picture

Good old Oliver Douglass from Green Acres demonstrating why he chose farming instead of lawyering.

Insulated Isodent - my favorite line from the TV show.

Wed, 09/19/2012 - 17:34 | 2812978 TheFourthStooge-ing
TheFourthStooge-ing's picture

Oliver Wendell Douglas, always speaking out for the poople of Heeterville Valley.

Wed, 09/19/2012 - 03:47 | 2810046 I Am The Unknow...
I Am The Unknown Comic's picture

Confucious say "you sell me counterfiet money, I sell you counterfiet gold!  He who raughs rast raughs rongest, roundeye!"

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