Skip to comments.As Chavez Pulls Venezuela's Gold From JP Morgan, Is The Great Scramble For Physical Starting?
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.
How much is a TON of gold worth?
I'm guessing it's outta my reach.
$5,888,000 I think.
What’s Spanish for GOLD-FINGAH!?
One metric ton is worth about 58 million dollars. The 110 tons in BoE and JP Morgan would be about 6.2 billion dollars.
Youy’re missing a zero, I believe.
99 tons of gold in the vault
99 tons of gold
I take them all
and that’s what ya get
99 tons of gold in my vault.
One ton is 2,000 lbs, or 32,000 ounces. 32,000 ounces is 35,108.5714 Troy ounces.
At $1824 per (Troy) ounce, that’s $64,038,034.20
There are lots of reasons for gold to keep increasing. Chavez being but one reason.
On Ausg 18 2010 gold was $1831 and today gold hit a high of $1832.
There are many reasons why gold increased $600 in the past year.
A principal reason is Obama and the Democrats who went on a spending spree that produced nothing of value.
At today's price of $1824 per ounce, one ton of gold would be worth $58,368,000.
Oops, wrong answer. Karl got it right.
It's the other way around. A troy ounce at 480 grains (31.103 grams) is heavier than an common (Avoirdupois) ounce at 437.5 grains (28.35 grams).
“He who has the gold, makes the rules.”
2,000 x 16 x 1,825.00 = $58,400,000.00
I still like silver. Great quick lesson on physical silver:
I tend to agree with it. Just buy an Eagle or a Round and don’t worry if you are paying a buck or two too much or not for starters.
Then, when ready to dump a real pile of money into it, go deep and shop like you would for a camera.
Check this out——>>>
No doubt about it today. Venezuela has formally asked the Bank of England for its gold that is stored there to be returned to Caracas. They are also asking the other foreign depositories for the rest of its gold.
Venezuela has 99 tonnes of gold stored at the Bank of England. It has a total of 212 tonnes so 113 tonnes of gold will come from the BIS and the Federal Reserve Bank of NY.
I would like to point out to you that the gold held at the Bank of England is not earmarked gold. It is on deposit there and the Bank can do whatever it likes with the gold. However it is a liability to them and the bank will fail if they cannot return the gold to Venezuela. The gold at the Federal Bank of NY is earmarked gold and the bank receives fees for its safekeeping. The gold held at the BIS is a site deposit and generally the BIS takes ownership of gold in a foreign jurisdiction in return for needed cash to a nation.
It looks like the BIS has site deposits of gold for Venezuela with the Federal Bank of NY.
You can now imagine what is going on behind the scenes. The Bank of England will recall its gold from the GLD. If that gold from GLD is now gone to sovereign China, India, Russia, South Korea, Mexico, and to wealthy Europeans fleeing the Euro, then the Bank cannot retrieve its swapped gold to repay Chavez. Not only that but the Bank of England is not the ultimate owner of the gold..it is probably wealthy Arabs or oil barons like Chavez. You can now imagine the wild scenarios possible. Gold was at its nadir of the day and shot up big time on the news of the repatriation of gold. Many understand the significance of today’s announcement.
Depends on whether you’re talking about the industry standard units of measure, tonnes (aka, metric tons), or the archaic American unit of measure, ton, of which there are two possibilities, short tons or long tons.
When talking about gold in international markets, it’s reasonable to assume the unit of measure is metric tons.
A metric ton (mt) weighs exactly 1000 kilograms. A troy ounce, the unit of measure used for gold pricing, weights 31.1034768 grams.
1 mt = 1000 kg/mt * 1000 grams/kg / (31.1034768 grams/troy ounce)
.. = 32,150.75 troy ounces
At today’s closing price of $1824.09/troy ounce, this works out to $58,645,855/metric ton.
He is taking it back because he doesn’t want a court over seas to attach it to a settlement with all the companies that are getting their assets seized by Chavez.
When he gets those bars if he doesn’t cut into a few of them it is all gold. If he does it may be largely tungsten. Would he announce that Venezuela had been defrauded?