Venezuela holds almost 60% of its physical gold reserves in the US, Canada, England and Switerland. Now in an effort to diverisfy its holdings away from US and European financial institutions, Chavez wants to repatriate the precious metal.
“We’ve held 99 tons of gold at the Bank of England since 1980. I agree with bringing that home,” Chavez said yesterday on state television. “It’s a healthy decision.”1
Though many outside observers do not find this move unexpected.
Venezuelans, may in fact, be afraid that much of their gold outside of the country may be at risk. Chavez, in an effort to stop what he refers to as "illegal mining", has siezed the operations of many foreign private mining operations. And if international arbirtation found that these siezures where carried out illegally, Venezuelian assets held abroad could be frozen.
"The government may be moving to repatriate reserves ahead of arbitration case rulings to avoid an “attachment risk” that could freeze international assets, Boris Segura, a New York- based strategist at Nomura Securities said in a research note."1
However this move could have unexpected consequences. Venezuela already has some of the highest borrowing costs of any developed nation. Hording assets and limiting transparency is not going to do anything but raise those costs further.
It is no surprise to most who have seen the socialist president nationalize pretty much everything under the South American sun. Chavez says he plans to move a total 211 tons of Venezuelan gold held in other countries to Caracas.
The move follows a dispute between his government and foreign miners who say the rules limiting the amount of gold that can be exported from the South American nation hurt their efforts to secure financing and create jobs.
Toronto-listed Rusoro (RML.V), owned by Russia's Agapov family, is the only large gold miner operating in Venezuela. It produced 100,000 ounces last year.2
Analysts have said this move will most definitely make gold reserves swell quickly in the country.
"I have here the laws allowing the state to exploit gold and all related activities ... we are going to nationalize the gold and we are going to convert it, among other things, into international reserves because gold continues to increase in value," Chavez said.
Dear World I want my gold back, too.
ReplyDeleteWhy do we need to mine for more gold when miners and driller are going to deep and as they press on spot it blows another away; hence Japan!
We have gold just sitting and it has no value unless it is crafted into fine arts or used for our teeth or domes.
What is this excessive greed over and where is all the money going?
Our mines are being used as a type of terrorist attack that will annihilate the World.
Would anybody like me to show them the proof of the black Swiss cheese markets? Come up here next to Leadville. Oops! Watch where you step. Those blackstones lead to deep dark toxic black holes that are as big as the Black Sea beneath the surface of the Earth.
Would you like to feel my land shake at night in West Virginia as the gasses build up and poison all the Children. Oh wait, that is just a fake to cover up the toxic poisoning from that toxic waste incinerator up the Ohio River that prestigious Doctors threw themselves in front of the gates in the early 1990’s to stop it from being opened. The only other one in the World was in Switzerland. Those Doctors said it will kill all of the Children downstream from that toxic incinerator and some upstream as well.
Now it’s time to make somebody pay so you overseas investors might as well. You did steal my resources. I don’t really want your stoolie bloody money. I just want my resources back along with interest and investments earned.
I’m not perfect and sometimes I tend to be a little bad so Bhaktipada gave me a lump of coal; the biggest most richest in the World. Give me back my coal and the gold and funds for the Temple of Understanding and the Cities Of God that we already had enough to build but you idiots came in and took it all.
God is kind and is giving you this chance to pay Him back. Don’t worry He’s been keeping track of how much everything is plus the cost of hindering our production and construction of the Cities of God which are meant to save the World.
My land in West Virginia was illegally mined under and now they are at the point of illegally drilling for gas. I wrote other Officials of this World and they have sought action, but the Government here in the USA must be ran by terrorists because it was well know for centuries that if they mined under that land that the drilling for gas in the final stage for annihilating the World.
I suppose there could just be some really big blast and a big nuclear flash and then splash splash splash!
There goes the gold right back in those deep dark holes with the blackstones.
I need my funds and gold back now everybody in order to save the World.
Love You All Always,
Queen Lala