Is the Gold Scam out of Control? Emirates Gold Turned out to Be Dust

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.

Emirates gold comes from Africa and they have long stopped examining the gold imported from there. People in the United Arab Emirates tried buying gold at a cheaper price from Africa, especially Ghana and Ethiopia, and have paid million of Dirham (silver coins) for several tons of gold which turned out to be dust. The Managing Director of Emirates Gold have inspected many consignments and found out that there is not even an ounce of gold in any of the bullion.

UAE gold jewelry demands have gone up by 29% in the first quarter of 2010 alone. This is the second highest after India which is the strongest performing market despite the price rally of the precious metal. With the demand so high up for gold jewelry and physical gold bullion, one should be worried whether there really is enough amounts of gold in supply.

In the meantime, the ponzi scheme continues. Many people are waking up to the fact that the majority of gold traded is through paper and that its volume does not get covered by the true amounts of gold in existence. Read more about the gold scam here:

The US Ponzi Schemes are Exposed and the Gold Scam could be Bigger than the Bernie Maddoff Scandal

More on the story here: Tons of gold imports turn to dust on arrival

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This entry was posted on Sunday, August 15th, 2010 and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
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