Counterfeits and Fakes

Apparently China has been buying gold and silver using "ghost steel" as collateral; when people go to look in the warehouses, the steel isn't there. On the other hand, someone's been shipping "gold" bars that are mostly tungsten, which costs about a dollar an ounce. Are the Chinese paying with ghost money and getting counterfeit gold? Sounds like a caper movie where you're trying to figure out who is really cheating whom.