GOLD LEASE PAYABLE – BANK

12 Months Ended

Dec. 31, 2016

Gold Lease Payable -Bank [Abstract]

Gold Lease Payable Bank [Text Block]

NOTE 9 – GOLD LEASE PAYABLE – BANK

During the year ended December 31, 2016, the Company allocated significant amount of gold in its inventories as investments in gold and pledged as collateral to secure loans from banks and financial institutions. In order to meet the Company’s production needs, the Company also utilized the leased gold of 185,000 grams of Au9999 gold in aggregate with carrying value of approximately $7.2 million (RMB 49.8 million) from Shanghai Pudong Development Bank (“SPD Bank”), and recorded this transaction as gold lease payable – bank. The leased gold shall be returned to the SPD Bank upon lease maturity in June 2017. (See Note 21)