President Chavez plans to nationalize Venezuela's gold industry

[News_Editor]

President Chavez plans to nationalize Venezuela's gold industry

2011-08-18 08:48:33 GMT+7 (ICT)

CARACAS (BNO NEWS) -- Venezuelan President Hugo Chávez announced on Wednesday that he will approve a new law to nationalize the country's gold industry, the El Nacional newspaper reported.

"Soon I will propose a law to start taking the gold zone and I count with you, because there's anarchy, mafia and smuggling in that zone," Chavez said.

Chavez further stated that he has the laws which allow him to nationalize the gold industry in Venezuela, which includes exploration and exploitation of the metal as well as other related activities.

The president urged the minister of Planning and Finance, Jorge Giordani, and the president of the Venezuelan Central Bank (BCV), Nelson Merentes, to speed up the process of transferring the Venezuelan gold reserves.

Giordani explained that the government's decision to nationalize the gold reserves seeks to diversify the resources and enable them for the national economy's development. "We are going to nationalize the gold and we are going to turn it into an international reserve, because its value keeps increasing," he said.

Venezuela has around $12 billion in gold reserves, Chavez said. "We cannot allow them to keep taking it away."

Chavez returned to Venezuela on Saturday after having completed a second round of chemotherapy in the Cuban capital of Havana. The left wing president has been in office since 1999 and plans to run for re-election in late 2012 despite his disease.

-- © BNO News All rights reserved 2011-08-18

[TAWP]

Let's hope all companies that are involved in the business blows up their mines and constructed creeks.

[elcent]

Chavez has upset the gold market yesterday. He withdrew gold reserves worth $ 11 billion from American and European markets and sent them back to Venezuela. Since then the gold price is rising faster than ever before. It stands at $1840 at the moment. You can't blame him for this. He's also under attack because he wants to share the oil revenue with the Venezualans and not with the big Z. and B-groups.

Watch the live ticker here You can get the widget for your sites there too), at the moement of posting gold price is $1848

[flying]

Chavez has requested their gold but that does not mean it has been transferred.

This is physical gold that their country deposited for safe keeping.

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.

Now they want to withdraw what is the problem?

Well the problem is the Bank Of England may have loaned their gold out to others.

Same as your money if you have any there.

The problem is not Venezuela the problem is the banks as usual.

Lucky for them the 113 tonnes at the FRB NY is supposedly earmarked & not loaned out as Venezuela pays a fee for storage.

As paper IOU's also known as currency falter I see no reasons to fault Venezuela for wanting to keep their countries monetary reserves in Gold.

That they also want to control their mines as more countries move to gold as a reserve is understandable.

Edited August 19, 2011 by flying

[TAWP]

Nationalizing companies that paid for setting everything up from the start is wrong, no-matter what you think of his withdrawal of the gold from the reserves.

[flying]

Nationalizing companies that paid for setting everything up from the start is wrong, no-matter what you think of his withdrawal of the gold from the reserves.

That would be a very large subject & one that would need to look at how these things were set up in the first place or the anarchy, mafia and smuggling he mentioned.

Also not knowing which country you were born in I would not know if for instance you know Americas history with gold.

Executive Order 6102 or similar laws in other countries during financial crisis

Lastly he did not withdraw anything from anyone's reserves. He instead is transferring what belongs to his country physically back to his country to be used as reserves for their country as the worldwide paper IOU system is in fact collapsing. They had kept their gold in other places for safe keeping.

They now feel those places are no longer safe. Nothing wrong with that IMO

Edited August 20, 2011 by flying

[zydeco]

Smart move by Venezuela. As for the rest of the world, this is what happens when you put your trust in slips of paper with presidents' and kings' pictures on them that can be churned out quicker than newsprint by someone pushing a button on a printing press.

[Naam]

Nationalizing companies that paid for setting everything up from the start is wrong, no-matter what you think of his withdrawal of the gold from the reserves.

That would be a very large subject & one that would need to look at how these things were set up in the first place or the anarchy, mafia and smuggling he mentioned.

Also not knowing which country you were born in I would not know if for instance you know Americas history with gold.

Executive Order 6102 or similar laws in other countries during financial crisis

Lastly he did not withdraw anything from anyone's reserves. He instead is transferring what belongs to his country physically back to his country to be used as reserves for their country as the worldwide paper IOU system is in fact collapsing. They had kept their gold in other places for safe keeping.

They now feel those places are no longer safe. Nothing wrong with that IMO

but the rats in the ratting-agency Poor Standards downgraded Venezuela one notch to B+ from BB-. most probably a move to please Washington and hand out a consolation for the downgrade of the U.S. of A.

these rats in the rat[t]ing agencies are as much criminals as is the global bankster mafia!

edited for addendum: thanks to the above-mentioned rats i was able to buy last friday a bond issued by Electricidad de Caracas, ISIN XS 0356521160, denominated in USD, maturity apr 2018, which yields to maturity a modest ~21% p.a.

Edited August 21, 2011 by Naam

[Naam]

Smart move by Venezuela. As for the rest of the world, this is what happens when you put your trust in slips of paper with presidents' and kings' pictures on them that can be churned out quicker than newsprint by someone pushing a button on a printing press.

for the record: Venezuela (especially under Hugo Chávez) has issued quite a bunch of paper slips on which "IOU" is printed.

[a99az]

Smart move by Venezuela. As for the rest of the world, this is what happens when you put your trust in slips of paper with presidents' and kings' pictures on them that can be churned out quicker than newsprint by someone pushing a button on a printing press.

Could not agree more, very good move indeed, he can see the writing on the wall. He's got to have a big pair of balls to do it though, I would think his life expectancy just dropped a little.

I wonder which country will be next? Could this start a massive run on gold?

[Scott]

I may be missing something, but I fail to see how moving Venezuela's gold back to Venezuela would have much of an affect on anything.

I would wonder why the gold was stored outside the country in the first place. Does it have to do with instability in the country?

Does he have anything planned of a political nature that could cause the gold (and other assets to be seized)?

[Exsexyman]

I may be missing something, but I fail to see how moving Venezuela's gold back to Venezuela would have much of an affect on anything.

I would wonder why the gold was stored outside the country in the first place. Does it have to do with instability in the country?

Does he have anything planned of a political nature that could cause the gold (and other assets to be seized)?

I don't think he would have to have anything planned of a political nature to have Venezuala's gold and other assets seized. He has probably seen what has happened in Libya. They were planning to set up a gold based currency for the sale of oil which would have bypassed the dollar, and look what happened to them. A Western instigated so called "uprising", then six months of bombing the shit out of their capital city under the pretext of protecting civilians. Freezing their assets and then handing them over to a rag tag bunch of so called rebels who are a mixture of Al Qaida and various muslim groups. Before this happened Libya owed not one cent to the IMF and world bankers. Were independent and self sufficient with the highest standard of living in the region by far. That will all change now. Chavez should watch his back. After all how dare he use the country's resources to benefit the people of Venezuala instead of western multinational companies, bankers etc.

[flying]

I may be missing something, but I fail to see how moving Venezuela's gold back to Venezuela would have much of an affect on anything.

I would wonder why the gold was stored outside the country in the first place. Does it have to do with instability in the country?

Does he have anything planned of a political nature that could cause the gold (and other assets to be seized)?

Exsexyman brings up some very valid points & one need only look at history & what he mentions. Saddam tried the same with oil to be sold in Euros & we see what that got him....That aside............

Venezuela is not the first country to call their gold back home in recent times.

It is not uncommon for countries to hold their gold outside for various reasons. A year or two ago Hong Kong also called all their gold home.

http://www.marketwatch.com/story/hong-kong-recalls-gold-reserves-from-london-2009-09-03

The reason it has an effect is Gold & maybe even more so Silver is it is a game of musical chairs.

The gold & silver that is traded via paper in markets & more importantly shorted is supposed to be evenly balanced.

Meaning the physical metal exists. Yet most know it does not. Those who short the price are supposedly in control of gold they leased/borrowed. Yet the totals do not jive. So it is called naked shorting.

What that means is those holding paper who want at some point to take delivery of real physical gold & silver are holding paper & nothing more.

When the music stops there will not be chairs for everyone.

Remember...If You Don't Hold It, You Don't Own It.

COMEX The New York Mercantile Exchange (NYMEX) is the world's largest physical commodity futures exchange...They reserve the right to settle contracts in cash

It is a large subject if you would like to see the actual contract per day this is a good site

http://harveyorgan.blogspot.com/

Even the US who claims to hold 8000 tonnes of gold in Fort Knox has not allowed an independent physical inventory to be done in over 50 years.

None can be sure it is even there/exists

Edited August 21, 2011 by flying

[zydeco]

I may be missing something, but I fail to see how moving Venezuela's gold back to Venezuela would have much of an affect on anything.

I would wonder why the gold was stored outside the country in the first place. Does it have to do with instability in the country?

Does he have anything planned of a political nature that could cause the gold (and other assets to be seized)?

Exsexyman brings up some very valid points & one need only look at history & what he mentions. Saddam tried the same with oil to be sold in Euros & we see what that got him....That aside............

Venezuela is not the first country to call their gold back home in recent times.

It is not uncommon for countries to hold their gold outside for various reasons. A year or two ago Hong Kong also called all their gold home.

http://www.marketwat...ndon-2009-09-03

The reason it has an effect is Gold & maybe even more so Silver is it is a game of musical chairs.

The gold & silver that is traded via paper in markets & more importantly shorted is supposed to be evenly balanced.

Meaning the physical metal exists. Yet most know it does not. Those who short the price are supposedly in control of gold they leased/borrowed. Yet the totals do not jive. So it is called naked shorting.

What that means is those holding paper who want at some point to take delivery of real physical gold & silver are holding paper & nothing more.

When the music stops there will not be chairs for everyone.

Remember...If You Don't Hold It, You Don't Own It.

COMEX The New York Mercantile Exchange (NYMEX) is the world's largest physical commodity futures exchange...They reserve the right to settle contracts in cash

It is a large subject if you would like to see the actual contract per day this is a good site

http://harveyorgan.blogspot.com/

Even the US who claims to hold 8000 tonnes of gold in Fort Knox has not allowed an independent physical inventory to be done in over 50 years.

None can be sure it is even there/exists

Agreed. Exsexyman describes the political situation to a T. But the bigger point is the one made just above about the manipulation of the gold and silver markets by large institutions who are buying and selling physical gold and silver they do not actually own. Lots of small investors who THINK they have some safety in so-called "certificates" of "deposited" gold and silver are in the same situation. Their ownership will vaporize when the real call for physical metal goes out. And lots of luck suing to get what is properly owed them. Anyone interested in the manipulation of the gold, and especially silver markets should google up Ted Butler on silver.

Edited August 22, 2011 by zydeco

[TAWP]

Were independent and self sufficient with the highest standard of living in the region by far.