Mystery of $2bn of loans supported by fake silver in China

Nasdaq-listed Kingold’s play for trove of home stymied by corruption probe

Significantly more than a dozen Chinese institutions that are financial primarily trust organizations, loaned 20 billion yuan ($2.8 billion) in the last 5 years to Wuhan Kingold Jewelry Inc. With pure gold as security and insurance coverages to pay for any losings.

Kingold could be the biggest privately owned silver processor in main Asia’s Hubei province. Continue reading →