Monday, August 22, 2011

Monday Post #2: Venezuela issues formal request for Gold

According to Bloomberg, the central bank of Venezuela has sent a statement by e-mail requesting its 99 tons of gold holdings from the Bank of England, citing the institution’s president Nelson Merentes.

"We’ve contacted the Bank of England and the corresponding protocols have been initiated to complete this operation as soon as possible,” Merentes said, according to the statement. “Once that’s done, the shipments will begin by sea.”

Chavez ordered the central bank Aug. 17 to repatriate $11 billion of gold reserves held in developed nations’ institutions. Chavez fears 'hostile countries' may seize the national patrimony.

Venezuela holds 211 tons of its 365 tons of gold reserves in U.S., European, Canadian and Swiss Banks.

40 shipments will be needed to carry the 17,000 400oz bars by sea.

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  1. Chavez better be careful.... NATO will be bombing him demanding Gaddafi be extradited to Europe for trials.

  2. I really believe that Chavez is waging war in the only way he can.... Timing is telling.... He and Gaddaffi are the best of friends. IF you want to stick it to the west.... this is the way to do it. First, drive up the price by threatening to nationalize... and then rip the heart out by demanding delivery. The US will find a nice rich oil boy to get the gold from to satisfy it... but... what if it dont? Im sure there is a deal with the rebels for the gold in Libia.... but, what if that goes sideways? 100 tonnes is nothing ... we all know this .... If I were Chavez, I would have another ally waiting to do exactly the same thing. Hmmm... wonder who that could be?

  3. Err... doesnt, and Libya

  4. live coverage of the debt crisis

    Man is gold and silver on a tear. To the moon Alice!

  5. default swaps

    What’s frightening about the developments in Europe in recent weeks is that the CDS market is once again sending the same signals. Someone is going to get left holding the grenade again. And this time, the market is actually telling us that it’s even worse than it was in 2008. The only difference is that the problems appear to be across the pond.