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Finance

Fake Gold Bars Discovered at Store in Midtown Manhattan

Sep. 19, 2012 10:24am Erica Ritz

Tungsten Filled Gold Bar Discovered in Manhattan, New York

(Photo: MyFoxNY)

In turbulent economic times, investors often turn to gold as an item of intrinsic value. Regardless of the state of the U.S. dollar, gold has proven to be a valuable commodity. It is a hedge against inflation, and protection in a worst-case scenario.

Which is why the discovery of tungsten-filled gold bars in Midtown Manhattan has troubled many.

MyFoxNY relates:

In jewelry stores on 47th Street and Fifth Avenue in Manhattan, the important trust between merchants has been violated. A 10-ounce gold bar costing nearly $18,000 turned out to be a counterfeit.

The bar was filled with tungsten, which weighs nearly the same as gold but costs just over a dollar an ounce.

Ibrahim Fadl bought the bar 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.

What makes it 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.

Here is video, with more information:

Back in March, TheBlaze’s Becket Adams reported on the discovery of Tungsten-filled gold bars turning up in the United Kingdom.

Contrary to what the news may indicate, it is apparently extremely rare to find Tungsten-filled gold bars being sold from reputable vendors. The recent uptick, MyFoxNY speculates, could indicate the involvement of an international crime ring.

The matter was reported to the FBI and the Secret Service and the latter, which investigates counterfeits, is investigating the matter.

(H/T: Business Insider)

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Comments (60)

BannedByHuffpo
Posted on September 19, 2012 at 9:59pm
Meh!

So you got suckered buying heavy metal.

Now if somebody tried to rip me off by scrimping on the powder charge in my 180 grain hollow points there’d be hell to pay.

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BannedByHuffpo
Posted on September 19, 2012 at 9:55pm
Saps buying gold, or any other “precious metal” as a hedge against anything are suckers.

You can’t eat gold. you can’t plant gold and expect it to grow. You can’t put gold into your gas tank and expect your car to go anywhere.

The commodities traders have done a terrific job in hyping this metal to the moon-faced, unwashed masses, and now they’re poised to reap huge gains based upon the “greater fool” proposition.

There’s indeed a sucker born every minute.

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- john141714
  Posted on September 20, 2012 at 3:23am
  You work for a living you get paper money in return you cant eat it you cant grow it and soon the gold that I buy will be worth more than the paper you get. there is a sucker born every minute…..
  
  Report this comment
- EndTheGOPTEA
  Posted on September 20, 2012 at 9:14am
  Wow, You are nuts man. The Gold and Silver bars I own Have GREAT Value and MUCH more than all the cash in the bank.. More than the cash here at home.. It is real, solid.. I cant Print more.. there is only so much.. period.
  Paper Money, the taxes you complain about.. all BS.. it is NOT your money.. it is the Govs Money.. give unto Caesar..
  
  You keep your Guns, I will keep my coins..
  
  Report this comment
- Bracsim
  Posted on September 20, 2012 at 7:28pm
  ENDTHEGOPTEA, save your gold coins, save them good, at the end the man with the guns will come and take it from you, a coin wont defend you, a gun will. When thing get ugly, really ugly, your gold will have no value, food and guns will help you survive a little longer.
  
  Report this comment
g56
Posted on September 19, 2012 at 6:37pm
I think its really crazy to buy gold in the first place, speculating in precious metals is little better than gambling, now another reason turns up not to do it.

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- mtclem
  Posted on September 19, 2012 at 7:03pm
  Really?? What is the intrinsic value of a $100 bill? Even if you purchased a gold bar for $18,000 and the price drops, it will still have value even if the faith and credit of the federal government collapses.
  
  Report this comment
- skippy6
  Posted on September 19, 2012 at 9:35pm
  Good luck with that soon to be useless paper… Don’t burn it all at once though, you may need it to start a fire…..
  
  Report this comment
- Bracsim
  Posted on September 20, 2012 at 7:37pm
  gold will also be useless, when everything colapse gold will have no value, we are not talking a simple depression, whats coming is even worst than that, paper money, coins, silver whatever, you cant eat gold, when people go hungry they look for food not gold, when someone is hunting you gold wont save you, a gun will, good luck with metals, I choose lead(guns) and food.
  
  Report this comment
tugdiver
Posted on September 19, 2012 at 6:00pm
The reporter was wrong. If it was a faked coin it is counterfeit if it is faked bullion it is fraudulent. One carries a more serious sentence than the other. Gold and silver gov minted coins are still a good investment because when we come under marshall law counterfeiters get executed.

Gold and silver are good intermediaries between selling one gun to one person and buying seeds or a gun from another. You have to have intermediaries.

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- WATER-THE-TREE
  Posted on September 20, 2012 at 12:04am
  When they declare marshal law they will take your gold, even your life.
  
  Report this comment
Angry-Elf
Posted on September 19, 2012 at 5:18pm
I did not know that Tungsten is only going for a buck an ounce…

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TheLeftMadeMeRight
Posted on September 19, 2012 at 4:53pm
Everyone knows the one’s in foil are chocolate….duh.

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ldaopines
Posted on September 19, 2012 at 4:21pm
Question: Did Ibrahim Fadl, who bought the bar, substitute his own tungsten for the gold since he had knew that counterfeit bars were occasionally showing up? Even if it’s a sophisticated operation, who’s to say who made the switch? We don’t know.

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watashbuddyfriend
Posted on September 19, 2012 at 3:57pm
Buyer, beware!

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1Haole_Boy
Posted on September 19, 2012 at 2:58pm
They look absolutely delicious!?

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GlennaBeckski
Posted on September 19, 2012 at 12:50pm
I just started reading a book last night “Money and Wealth in the New Millenium” A Prophetic Guide to the New World Economic Order” by Norm Franz. Really interesting.. the practice of “uneven scales” begin in the earliest history of man and has only increased by way of more devious practices over the years. Hence.. here we are with what looks like a chocolate bar with gold foil on it.

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ClaudeRains
Posted on September 19, 2012 at 12:21pm
That sucks. I hope they aren’t messing with the chocolate filled gold coins.

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- PlowMan
  Posted on September 19, 2012 at 12:42pm
  We need comic relief like this, thanks.
  
  Report this comment
nonliberal
Posted on September 19, 2012 at 12:13pm
Obviously Bush’s fault!!

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- ClaudeRains
  Posted on September 19, 2012 at 12:25pm
  Don’t be silly. Bush is still blowing up levees in New Orleans and planning his next hurricane
  
  Report this comment
- meeester
  Posted on September 19, 2012 at 3:05pm
  he didn’t build that . . . but . . . who built those levees?
  
  Report this comment
AJAYW
Posted on September 19, 2012 at 12:03pm
Is there a chance that obama and holder is involved in this to scare people from buying gold? F and F was used to try and get gun controls. I wouldn’t put anything above what these two racist commies are willing to do.

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- chucksue351
  Posted on September 19, 2012 at 12:17pm
  after all they (president obama) said that we or for that matter the thief didn’t do it themselves they needed the government
  
  Report this comment
Ted Zeppelin
Posted on September 19, 2012 at 11:55am
.
If gold is such a good investment, why dio they have to advertise it every six minutes?
The best investments don’t have to be advertised at all.

And what do you do with it once you have it or think you have it but really aren’t holding it in your hand? If your gold is being held by your dealer, how mwny times has he sold your gold to others?

Do you know why diamonds are forever? It’s because they have no resale value.

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Mapache
Posted on September 19, 2012 at 11:52am
I did my own calculations as to what is really valuable if there is a worldwide or governmental breakdown. I took out my physics and chemistry books and discovered this equation that explains it all. (JHP) or (FMJ) > AU + AG + Cn H2n+2 = Food, Shelter Clothing

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- AJAYW
  Posted on September 19, 2012 at 1:11pm
  I like your math
  
  Report this comment
- Fenrirsulfr
  Posted on September 20, 2012 at 4:31pm
  Roger That!
  
  Report this comment
MODEL82A1
Posted on September 19, 2012 at 11:38am
I wonder how many of YOUR gold coins, bars and bullion are counterfeit? Surely none, right?…………..

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Uechi
Posted on September 19, 2012 at 11:20am
Why would anybody that isn’t a millionare buy gold ignots/bars? Anytime you buy them in that configurationt\ they most certainly will have to assayed before they resold. It is alot easier to buy and sell well know Gold coins. They are bought an sold on a regular basis without assay. Sure coins can be counterfeited but it is an expensive propsition.

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- Secret Squirrel
  Posted on September 19, 2012 at 11:35am
  .
  Because the premium is less. If you’re interested in gold as an investment,
  it doesn’t make sense to pay high premiums.
  a 10 oz gold bar is not that big. I’m amazed a counterfeiter would bother.
  Usually, the fake bars are 100 oz. or larger.
  
  Buy from a reputable seller.
  
  Report this comment
- The Jewish Avenger
  Posted on September 19, 2012 at 11:49am
  Just like counterfitting…
  
  Everyone pays attention to 20s and higher.
  You can pass counterfit 1′s 5′s and 10′s all day and no one will notice.
  
  Report this comment
- The Jewish Avenger
  Posted on September 19, 2012 at 11:51am
  And… the feds send out a detail to my house in
  5…4…3…2…1…
  Boom!!! FBI !!! ON THE FLOOR MAGGOT!
  
  Report this comment
- chucksue351
  Posted on September 19, 2012 at 12:19pm
  drop the coin on the floor, it should have a nice ring (like a bell) if it has a sound like a thud then it is a dud
  
  Report this comment
OniKaze
Posted on September 19, 2012 at 11:12am
As I said in a reply to Chuck…

For those people out there that are “golding” up for when the “end of the civilized world” happens (which I know isn’t most people, but I know some, so they ARE out there) realize that gold is a useless shiny object (as far as human survival goes)… Gold will not feed or protect your family (although having it may make them a target).

So you may say, “sure, it doesn’t do that, but we can trade it for things that will..” Really? Well as someone who has weapons and ammo, if that ever came to happen, I would not trade ANY of my Tools for survival (weapons, ammo, hardware, goods) for a useless shiny object that is only good for looking at… Pretty things don’t prolong life… TOOLS do…

Gold has value in our current world… But what happens if that system collapses, are you still willing to bet that people will trade survival items, for luxury items?? I’m not going to bet on that…

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- woodyee
  Posted on September 19, 2012 at 11:23am
  Who says gold will be no good in a survival situation?
  
  1/10 gold coins make good lures; 1/4, 1/2, and 1oz sizes make good sinkers. When trading, nothing beats an unaltered fractional gold coin as calibration weight for a scale. 1oz coins are great for signalling. Use your imagination, Onikaze!
  
  Report this comment
- RobbieTLHughie
  Posted on September 19, 2012 at 11:32am
  Gold hoarders always made me laugh ever since the concept emerged in the last four years. If the world ends, you’ll need three things; Gasoline, bullets and food.
  
  Report this comment
- UNALIEN
  Posted on September 19, 2012 at 11:43am
  ONIKAZE,
  
  you are wrong, mostly
  
  and are using false assumptions,
  
  You assume that you know how a collapse will unfold…While ammo food and tools will be extremely valuable in a complete break down of civilization the chances of that are small and short term. The role of gold and silver is a store of wealth to hedge against the perpetual devaluation of fiat currency and in a collapse they will emerge as the dominant form of money. So, dismissing gold and silver is a straw man, it has been money for 5000 years…. Civilization will recover and you want to have made through with your wealth NOT in dollars…
  
  You are creating a false dichotomy.. gold or food and ammo.. You should have all… even though all can be taken from you by the Government…
  
  Report this comment
- UNALIEN
  Posted on September 19, 2012 at 11:48am
  ROBBIETLHUGHIE,
  
  The number people that do not understand Gold make me question the rationality and indoctrination of the masses…
  
  Report this comment
- Dismayed Veteran
  Posted on September 19, 2012 at 1:59pm
  If you want an alternative currency in a long term survival/disaster/zombie situation think cigarettes, anti-biotics and medical supplies.
  
  Report this comment
- john141714
  Posted on September 20, 2012 at 3:31am
  do you know or any of you on here know what diversify means??? Most people that by gold only invest no more that 10% in gold. I have gold, food, water, etc oh and guns to protect myself from anyone wanting any of the above. If you dont think gold is a good investment dont buy any. Just see if the paper money you have gets you anywhere after good old Ben gets finished with what he is doing…
  
  Report this comment
NDCORUP
Posted on September 19, 2012 at 11:10am
There’s the reason that way back when I was buying gold I stayed with 1/10, 1/4, and few 1/2 oz. Coins. Eagles, Krugerands, Maple Leafs.

More premium charged, but cheap insurance.

The way around the weight discrepancy is a slight expansion of the bars to accept slightly more tungstan. Who measures them (bars) with a micrometer?

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MrKnowItAll
Posted on September 19, 2012 at 11:07am
This is just the beginning. Desperate people do desperate things.

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- SREGN
  Posted on September 19, 2012 at 11:29am
  Desperation is a stinky cologne.
  
  Report this comment
- Verceofreason
  Posted on September 19, 2012 at 11:34am
  And don’t forget -
  Buy gold and store food.
  
  Report this comment
NEUTRON
Posted on September 19, 2012 at 11:07am
One of the many reasons why I mine my own gold. No paper trail and no one know who much I got…

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Darmok and Jalad at Tanagra
Posted on September 19, 2012 at 11:04am
To hedge against the potential economic failure, I invest in lead, gunpowder, and food. All three will carry me through an econimical collapse, and with lead, I can get gold. Plus, have you ever tried to take down a deer with a gold bar?

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- OniKaze
  Posted on September 19, 2012 at 11:12am
  That’s exactly what I say…
  
  Report this comment
- Chinishque
  Posted on September 19, 2012 at 3:15pm
  The real problem with taking down that deer with a gold bar is control. You just cant swing it hard enough! So I melt mine down into balls for my muzzle loader!
  
  Report this comment
- GotzvB
  Posted on September 19, 2012 at 6:01pm
  But remember Darmok, there’s always someone faster, more accurate, better armed or just plain lucky. Once you go down the road of “I’ll just take what I want with my lead” you had better be the baddest MF in the valley.
  
  Report this comment
- Darmok and Jalad at Tanagra
  Posted on September 19, 2012 at 9:54pm
  Not the “I’ll Take it” But if I have ammunition, would you rather trade for ammo to hunt food, which you can eat, or a shiny piece of “Gold”, gold plate, gold painted, metal? In a barter system, acutally trading something like .22 ammo, would get you more than Gold.
  
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Wango
Posted on September 19, 2012 at 10:50am
Your sponsor this half hour . . .

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- RJJinGadsden
  Posted on September 19, 2012 at 11:08am
  WANG, Thieves and shysters are just that. Such things occur in just about every type of merchandise. Walk the streets of NYC and see how many counterfeit items you can find being hawked.
  
  Report this comment
SREGN
Posted on September 19, 2012 at 10:47am
All that glitters is not gold.

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Chuck7884
Posted on September 19, 2012 at 10:40am
Damn they did not weight the bars before purchase.Who’s fault is that? almost is not the same as is.every place i went to sell gold weighed it before buying.now if they had used lead this would be a problem since lead weighs the same as gold and cheaper I might add..

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- OniKaze
  Posted on September 19, 2012 at 11:05am
  Tungsten weighs just about as much as gold, so its not that easy to detect (which is why people use tungsten). In the end, GOLD like every other investment, is a risk…
  
  You want something that will have VALUE when the crap hits the fan… Weapons and ammo will be worth more than gold if everything crumbles…
  
  Gold is just a shiny object, and lets say the world collapses, what would you value more… Shiny worthless gold (which you can’t eat, or do anything but trade) or weapons and ammo which you can defend yourself and hunt for food with…
  
  Gold only has value if someone wants useless shiny objects, TOOLS and survival items are worth MUCH more…
  
  Report this comment

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