October 09, 2011

Chavez Orders $11 Billion of Gold Home as Metal Hits Record

Desperate times


Between the WWI and WWII, as Western economies and govts. struggled to stay afloat, many countries found that their gold had mysteriously disappeared.

Mostly at the hands of the British.

Belgium, Spain, the Roma Gyspsies were some of the people who lost their gold. In the recent past, the French seizure of Tunisian gold was not surprising at all.

Earlier, Iran found its funds frozen by the US, as the Western crisis blew over.

Venezuelan President Hugo Chavez ordered the central bank to repatriate $11 billion of gold reserves held in developed nations’ institutions such as the Bank of England as prices for the metal rise to a record. Venezuela, which holds 211 tons of its 365 tons of gold reserves in U.S., European, Canadian and Swiss banks, will progressively return the bars to its central bank’s vault, Chavez said yesterday. JPMorgan Chase & Co., Barclays Plc, and Standard Chartered Plc also hold Venezuelan gold, he said. “We’ve held 99 tons of gold at the Bank of England since 1980. I agree with bringing that home,” Chavez said yesterday on state television.

Chavez also said yesterday that he’s preparing a decree to nationalize the gold industry to halt illegal mining and dedicate local production to building up reserves. (via Chavez Orders $11 Billion of Gold Home as Metal Hits Record – Businessweek).

Chavez is doing the right thing.

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