Yannick Colleu, a specialist in metals, uncovered a startling secret while examining old records at the Bank of France. His findings revealed that about half a decade after World War II, France began distributing counterfeit gold coins, a type of “fake” currency.
“This discovery is truly priceless,” Colleu says. When we hear about large-scale scams, our minds usually go to famous fraudsters such as Charles Ponzi, known for his pyramid schemes, or wealthy figures using complex tricks to evade taxes.
Few would suspect that a trusted government could also be involved in deception. Yet, for nearly a decade, in France, there were counterfeit gold coins in circulation, and the state managed to keep this hidden, relying on the public’s trust, according to Colleu.
Illegal way to stabilize the economy
Between 1951 and 1960, the French Minister of Finance secretly authorized the production and circulation of counterfeit gold coins with the backing of the Bank of France. This is the remarkable finding Colleu uncovered in the archives of the Bank of France, detailed in his book L’Or des Français.
The story begins in 1951, a challenging period for France’s finances after World War II. “We had very little gold left at the end of the war, [since] everything was melted down to buy munitions,” Colleu explains.
Since France had signed the Bretton Woods Agreement in 1945, gold played a crucial role in stabilizing the economy and maintaining a balance with the US dollar, which remained the only currency directly convertible to gold.
Got this today as well. Some Frenchy gold 10 francs from 1907 AU. #gold #silver #platinum #coins #stacking #silverstacking #france #rooster #au #ag #pt pic.twitter.com/taB99TIodZ
— thekolleckter (@TheSilverBuck) September 16, 2020
“We had come off the gold standard, and we were trying to follow the dollar,” he adds. This effort grew more pressing when, in 1952 and 1954, France took out two loans tied directly to the value of gold and the Napoleon, a 20-franc gold coin.
The Finance Minister at the time came up with a secret plan to calm the market, even though it was illegal. They reused the design of old 20-franc coins, called “rooster” coins, which had stopped being used in 1926. Then, without telling the public, they started putting these coins back into circulation to help stabilize the economy.
37.5 million counterfeit gold coins entered the market
Despite objections within the Bank of France’s General Council, this operation went forward in strict secrecy.
“The governor reports to the Bank of France so that it can produce counterfeit demonetized coins, [and] there is not even a decree as is usually the norm,” explains Colleu. He adds that the decision was so secretive it wasn’t mentioned in the annual report of the Coins and Medals Administration.
“It’s an open secret,” confirms Arnaud Manas, head of the Bank of France’s heritage department. He notes that even Parliament discussed this information in 1976.
In total, the government of France produced and distributed about 37.5 million of these counterfeit gold coins, all to help the Foreign Exchange Stabilization Fund control the gold market. Today, making copies of demonetized currency is considered a crime under Article 442-3 of the Penal Code.
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