Aluminum is silver and bronze or brass is gold, so it sounds like s spun or seized bushing. No way to tell exactly what without tearing it down.
If the old oil was grayish, perhaps it wasn't changed regularly. Gray oil is a sign of emulsified water. When buying a used bike, always ask for service records. If they are not available, you're better off to keep looking. Good luck.
It may be a pig, but it's a pig with a rocket in it's ass!