Posted on 08/18/2011 1:54:49 PM PDT by dennisw
In addition to the nationalization of his gold insutry, Chavez earlier also announced that he would recover virtually all gold that Venezuela hold abroad, starting with 99 tons of gold at the Bank of England. As the WSJ reported earlier, "The Bank of England recently received a request from the Venezuelan government about transferring the 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter. A spokesman from the Bank of England declined to comment whether Venezuela had any gold on deposit at the bank." That's great, but not really a gamechanger. After all the BOE should have said gold.
What could well be a gamechanger is that according to an update from Bloomberg, Venezuela has gold with, you guessed it, JP Morgan, Barclays, and Bank Of Nova Scotia. As most know, JPM is one of the 5 vault banks. The fun begins if Chavez demands physical delivery of more than 10.6 tons of physical because as today's CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Or roughly 10.6 tons. A modest deposit of this size would cause some serious white hair at JPM as the bank scrambles to find the replacement gold, which has already been pledged about 100 times across the various paper markets. Keep an eye on gold in the illiquid after hour market. The overdue scramble for delivery may be about to begin.
*** Will Venezuela’s 99 tons of gold make it back to Venezuela or be hi-jacked on land or the high seas??***
Which reminds me... What ever happened to all that Aztec and Inca gold Spain sent to Russia, during the Spanish Civil War, where it promptly disappeared?
The only reason I can think of is a lack of trust...which says it all.
Thanks- good link!
No need to cut it. Just weigh it. Gold has the highest specific gravity. It cannot be counterfeited.
I would be watch Term Limits when it is made into a movie, maybe a documentary if things keep going this way!
you’ll take 2? I’ll see your 2 and raise you 3! heh
How would one transport 10 tons of gold to Chavez’s house?
FWIW_
The Soviet Union were the main suppliers of military aid to the Republican Army. This included 1,000 aircraft, 900 tanks, 1,500 artillery pieces, 300 armoured cars, 15,000 machine-guns, 30,000 automatic firearms, 30,000 mortars, 500,000 riles and 30,000 tons of ammunition.
The Soviets expected the Republicans to pay for these military supplies in gold. On the outbreak of the war Spain had the world’s fourth largest reserves of gold. During the war approximately $500 million, or two-thirds of Spain’s gold reserves, were shipped to the Soviet Union.
How long can the banks legally stall, law suits from nationalized companies, etc.? In time enough for the big C to do God’s work?
Do you have similar information on what Germany was paid for supplying Franco’s military and what was received for it?
Interesting proposition. If I had 99 tons of gold in the vault and wanted it - would I worry about the less than 3 gram difference in weight of the ounces?
On the one hand - of course, as it all adds up.
But would I really care?
But if I was so poor and my only possesion was a silver coin - would I care or not about the difference?
You say 3 gram difference, I say 10% of 99 tons of gold or about $525 million. Even with a one ounce gold coin it would be a $160 difference one way or another.
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