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A Big Pot of Gold in Libya Could Finance Gadhafi's Long War
oilprice.com ^ | 24 Mar 2011 | Dian L. Chu

Posted on 03/25/2011 10:27:57 PM PDT by smokingfrog

As the international military forces are descending upon Libya as we speak, some people have dismissed Libyan leader Moammar Gadhafi's vow of a 'long war to victory' delivered via a telephone call to state television on Sunday, March 20. After all, many military experts have suggested that Gadhafi's days are numbered since the number of soldiers loyal to Gadhafi could be fewer than 10,000.

Moreover, US and European governments have imposed sanctions and frozen Libyan assets worth billions of dollars, including the central bank, sovereign wealth fund and state oil company cutting off funding for further support activities....unless Gadhafi has a hidden pot of gold or two somewhere

As it has turned out, the 'long war' threat from Gadhafi may not be as emply as some might think. Financial Times on March 21 cited data from the International Monetary Fund (IMF) that the Libya holds 143.8 tonnes of gold (see table), but some say the actual amount could be several tonnes higher.

Instead of vaults in London, York or Switzerland, Libyan bullion is in the country held by its central bank, which is under Gaddafi’s control. However, Financial Times noted some believe that the gold reserves may have been moved from the central bank in the capital, Tripoli, to another location such as the southern city of Sebha, close to the borders with Chad and Niger.

According to FT.com. international banks or trading houses are unlikely to transact anything with Libya at this moment, let along gold, but there still could be other interested counterparties for a swap of arms, or cash. So, Gadhafi could conceivably transport the gold to Chad or Niger, where the gold could be swapped.

Libya's gold reserves, ranked No. 23 in the world, ahead of Saudi Arabia, as of December 2009

(Excerpt) Read more at oilprice.com ...


TOPICS: Foreign Affairs; News/Current Events
KEYWORDS: gold; libya; oil
Not sure if the source is reliable, but the scenario sounds plausible.
1 posted on 03/25/2011 10:28:01 PM PDT by smokingfrog
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To: smokingfrog
Don't get me wrong, but... they ARE hiring in Libia. and they are paying in gold?

You got a contact number?

Cause we're not seeing much work here.

/johnny

2 posted on 03/25/2011 10:31:57 PM PDT by JRandomFreeper (Gone Galt)
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To: smokingfrog

Tell ya what. If he is holding that much in gold they are gonna have a hell of a time getting rid of him. Do they have any idea what some of those countries would do for gold? He could hire an entire army for years to come.


3 posted on 03/25/2011 10:58:49 PM PDT by crz
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To: crz

All that gold sure didn’t buy the ugly sucker any good looks. Gadhafi’s one spooky looking critter. Fugly ugly.


4 posted on 03/26/2011 12:44:43 AM PDT by unkus
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To: crz
You are right, this is the map of Libya. Go and enforce a no-camel-moving-gold-to-neighboring-countries zone.


5 posted on 03/26/2011 12:49:39 AM PDT by mewykwistmas (No blood for ($4 a gallon) oil!)
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To: smokingfrog

take the gold , take the oil and use their seized funds to pay our costs for taking Daffy out


6 posted on 03/26/2011 1:16:42 AM PDT by LeoWindhorse
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To: smokingfrog
143 metric tonnes = 4,597,557 troy oz.

4,597,557 troy oz. @ $1,400 per oz. = $6,436,579,800 dollars.

That might last awhile.

7 posted on 03/26/2011 1:25:31 AM PDT by TigersEye (Who crashed the markets on 9/15/08 and why?)
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To: smokingfrog
I couldn't resist making this:

Lepregaddafi! Don't try and steal his pot o' gold or he'll curse you!

8 posted on 03/26/2011 2:53:00 AM PDT by Boogieman (")
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