You are here
Tons of gold imports in UAE turn out to be fake
From Emirates 24/7, Dubai
Sunday, August 15, 2010
Several tons of gold imported into the UAE by traders and investors turned out to be fake on closer inspection, resulting in millions of dirhams in losses and high levels of stress to the victims.
Speaking to Emirates 24|7, Mohamad Shakarchi, managing director of Emirates Gold, said: "A lot of people in the UAE who tried to import gold at lower prices or through dubious overseas companies have been cheated. We have inspected many consignments from African countries, especially Ghana, and found that there is not an ounce of gold in them. For importing pure dust or other metals with yellow colour, these traders have paid several million dirhams."
Dubai Customs sources confirmed the incidence of fake gold imports but did not reply to a questionnaire sent by Emirates 24|7 10 days ago. "The concerned official is on leave," a spokesman said.
... Dispatch continues below ...
Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit:
Emirates Gold has stopped examining gold imported from Africa. "We send specialists to examine a gold consignment only if it is routed through a local company," Mohamad said. "We don't have time to waste because most of these so-called gold imports are fake. The traders got greedy. They thought they were getting gold at a discounted rate."
Mohammed said that at least five tonnes of fake yellow metal are lying with Dubai Customs.
A tonne of gold will cost approximately $40 million. Merchants estimated that the minimum loss of fake gold imported by local traders is nothing less than $200 million.
He said many clients and Dubai Customs have requested the use of the company's expertise to verify the purity of gold. "The fake gold issue has affected many people. Some of the traders got heart attacks after our inspectors said there is no gold in the tonnes of imports brought from Africa," Mohammed said.
Recent media reports suggested that several million dollars worth of gold with the Ethiopian Central Bank turned out to be fake. These bars of gold turned out to be gold-plated steel bars.
African gold merchants claim to be in possession of large quantities of gold dust or gold bars, which they offer to sell at below-market prices.
The would-be buyer is made to send money for the travel of the seller, for insurance, for shipping, and for refinery assays before receiving anything of any value. Investors are shown samples, which may be original gold.
But when the consignment reaches the port, it will be only mud or sand. Once Dubai Customs tightened controls, fake gold imports started reaching the UAE through other ports.
The seller can walk away at any point with virtually no risk of being caught as all contacts are via anonymous free Webmail accounts accessed from Internet cafes and via prepaid mobile phones.
After the real estate and stock market investments became dull, many local investors have turned to commodity investment, especially gold, said the chief
executive officer of JRG Commodities, Sajith Kumar PK.
* * *
Join GATA here:
Toronto Resource Investment Conference
Saturday-Sunday, September 25-26, 2010
Metro Toronto Convention Center, Toronto, Ontario, Canada
The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
* * *
Support GATA by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.
Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
|Previous Article||Next Article|
|Hinde Capital's attack on gold ETF makes Fi...||Henry Smyth: The recent history of the futu...|