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What will become of Chávez’s gold hoard?

Posted By yihan On March 14, 2013 @ 5:59 am In Money Watch | Comments Disabled

Peter Christian Hall
Reuters [1]
March 14, 2013

In August 2011, while undergoing cancer treatments that ultimately failed him, Venezuela’sPresident Hugo Chávez [2] began withdrawing 160 tons of gold from U.S., European and Canadian banks. “It’s coming to the place it never should have left. … The vaults of the central bank of Venezuela, not the bank of London or the bank of the United States. It’s our gold,” he said on national television [3] as crowds cheered armored trucks carrying an initial bullion shipment to the central bank.

While Chávez suggested the gold repatriation might forestall a Libya-style seizure of Venezuela’s assets by Western powers he had antagonized, IHS Global Insight analyst Diego Moya-Ocampos told Reuters it might stymie potential claims [4] by foreign corporations seeking compensation for nationalizations they had endured. Central Bank of Venezuela President Nelson Merentes said [5] it was “an act of financial prudence and sovereignty” intended to guard against problems in the international markets.

The shipments, conducted by air after much talk of alternate delivery modes [6], concluded five months later in a celebratory caravan. (Germany’s doing it, too: Berlin has ordered repatriation [7] of 674 metric tons of gold, worth $34 billion, from Paris and New York.)

The Caracas hoard would today be valued at around $9 billion, were it not for the fact thatVenezuela has been selling it [8] — about $550 million worth in the first eight months of 2012, according to the International Monetary Fund. Did further sales follow over the past six months, with proceeds partly paying for the public largesse that helped fuel Chávez’s victorious up-from-the-sickbed presidential run?

Full story here. [1]


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URL to article: http://www.prisonplanet.com/what-will-become-of-chavez%e2%80%99s-gold-hoard.html

URLs in this post:

[1] Reuters: http://blogs.reuters.com/great-debate/2013/03/13/what-will-become-of-chavezs-gold-hoard/

[2] President Hugo Chávez: http://en.wikipedia.org/wiki/Hugo_Ch%C3%A1vez

[3] he said on national television: http://www.aljazeera.com/news/americas/2011/11/20111126744164125.html

[4] stymie potential claims: http://www.reuters.com/article/2011/08/19/us-venezuela-economy-gold-idUSTRE77H5Z620110819

[5] Nelson Merentes said: http://www.bloomberg.com/news/2012-01-31/venezuela-receives-last-shipment-of-repatriated-gold-bars-1-.html

[6] alternate delivery modes: http://blogs.reuters.com/felix-salmon/2011/08/23/how-to-get-12-billion-of-gold-to-vene

[7] Berlin has ordered repatriation: http://www.bloomberg.com/news/2013-01-16/bundesbank-to-repatriate-674-tons-of-gold-to-germany-by-2020.html

[8] Venezuela has been selling it: http://blogs.ft.com/beyond-brics/2012/10/25/venezuela-gold-sale-desperate-or-shrewd/#axzz2MsXDpGfC

[9] Chavez Nationalizes Venezuela’s Gold Industry, Recalls Hundreds of Tons of Gold Held Abroad, May Cause a Scramble for Physical Gold From JP Morgan and Others: http://www.prisonplanet.com/chavez-nationalizes-venezuelas-gold-industry-recalls-hundreds-of-tons-of-gold-held-abroad-may-cause-a-scramble-for-physical-gold-from-jp-morgan-and-others.html

[10] Chavez Plans on Nationalizing Gold Industry: http://www.prisonplanet.com/chavez-plans-on-nationalizing-gold-industry.html

[11] Venezuela Gets First Shipment Of Physical Gold Today: http://www.prisonplanet.com/venezuela-gets-first-shipment-of-physical-gold-today.html

[12] Chavez Gold Action Leads to Backwardation, Short Squeeze and ‘Havoc’ Concerns: http://www.prisonplanet.com/chavez-gold-action-leads-to-backwardation-short-squeeze-and-%e2%80%98havoc%e2%80%99-concerns.html

[13] Chavez to Obama: I’d vote for you, and you for me: http://www.prisonplanet.com/chavez-to-obama-id-vote-for-you-and-you-for-me.html

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