Is Venezuela Selling Gold to Goldman Sachs?

Tyler Durden's picture

With gold once again getting the slamdown treatment this morning (even as stocks shrug off any taper tantrum fears) the following article from Venezuelan newspaper El Nacional seems quite prescient. As Liberty Blitzkrieg's Mike Krieger notes, it appears to imply that the struggling South American nation has agreed to sell or swap the gold it still holds overseas at the Bank of England to Goldman Sachs. Perhaps that helps explain where Maduro got the money for the Samsung deal...

Via Liberty Blitzkrieg blog,

This is one of the major problems with gold. Despite what some may say, it is probably the most manipulated asset on the planet. Given the fact that so much of the gold is in the hands of sovereign nations and Central Banks that can be pressured by the U.S. empire, this is what happens. In fact, as I have said on many occasions, many of the Central Bank purchases we hear about do not consist of countries actually moving gold to within their borders, but rather just paper purchases. This does nothing to tighten supply/demand for gold. The main countries whose Central Banks actually appear to buy and deliver gold within their borders are China, Russia, Iran, and well, Venezuela. Until that changes, gold will be relatively easily manipulated, which is exactly why I support Bitcoin and why is taking off as it has.

From a sentiment perspective I think gold is buy, but personally I am waiting to see if we get one more major flush.

Here are excepts from the article courtesy of GATA. I believe it is a google translation and the actual sourced article in Spanish can be found here.

Venezuela’s Central Bank and Goldman Sachs are ready to sign an agreement to swap or exchange international gold reserves, with a start date in October, as stated in the contract, and until October 2020.

 

The negotiated amount, equivalent to 1.45 million ounces of gold, are deposited in the Bank of England and the transfers are made directly to Goldman Sachs once delivery times are stipulated.

 

The operation involves the delivery of gold from the central bank, which will receive dollars from the U.S. firm. The transactions are made through the creation of a financial instrument that is traded in the international market.

 

During the term of the instrument is an account called “margin,” in which the central bank agrees to deposit a larger amount of gold in the event that the price of gold falls or in which Goldman Sachs deposits a larger amount when gold increases. “At the expiration of the transaction the contributions are returned to their owners,” the document says.

 

There will be an adjustment to the asset value of 10 percent, to be used as a hedge in case the international market price falls, indicating that the U.S. bank takes care that if it produces a depreciation it will be covered and Venezuela would assume risk. The annual interest rate will be a combination of dollars with the call BBA Libor equivalent to 8 percent.

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FieldingMellish's picture

Queue tragic car accident involving El Nacional editors in 5 4 3...

outamyeffinway's picture

What a FOOL! Don't wonder where conspiracies start from. This is how it happens. It APPEARS as if this guy was paid to destroy his own country. You know, like Obomber.

BaBaBouy's picture

The Fucking IDIOT Politicos Will Sell Everything Including Grandmas' China, Until There Is

"""ABSOLUTELY NOTHING HARD & TANGIBLE LEFT"""".

BaBaBouy's picture

"""The operation involves the delivery of gold from the central bank, which will receive dollars from the U.S. SACKS firm. The transactions are made through the creation of a financial instrument that is traded in the international market."""

 YOU GATA BE FUCKING KIDDING ME...

TwoCats's picture

Wait a sec, this is around 1.8 Billion USD.  You mean when gold goes back up 50%, GS is going to have to pony up a 900 Million USD margin call?

That feels like a little taste of justice, somehow :-)

hit_the_bid's picture

"You mean when gold goes back up 50%, GS is going to have to pony up a 900 Million USD margin call?"

 

er afaik no, goldman are buying it now, and selling it back to VZ in the future. in the meantime venezuela receive dollars plus interest.

 

no doubt its being rehypothecated by GS a hundred times over.

jonjon831983's picture

Or... here's the interesting thing.

If somehow gold keeps going down... VZ has to pony up more gold.

""During the term of the instrument is an account called “margin,” in which the central bank agrees to deposit a larger amount of gold in the event that the price of gold falls or in which Goldman Sachs deposits a larger amount when gold increases.""

Dr. Engali's picture

"It APPEARS as if this guy was paid to destroy his own country. You know, like Obomber."

Obomber is destroying Kenya?

john39's picture

if only.  sadly, obama's true father appears to be a communist pornographer from Chicago, Frank Davis.

http://obambi.wordpress.com/2008/10/22/frankmarshalldavis/

 

Herd Redirection Committee's picture

I have been trying to tell my fellow ZHers for years...

One World Mafia's picture

Nah, that's a distraction.  All those claims that B.O. looks just like Marshall can be disproven by seeing a photo of his white grandpa when young.

http://peacecorpsonline.typepad.com/poncacityweloveyou/2009/02/barack-ob...

holgerdanske's picture

it appears to imply that the struggling South American nation has agreed to sell or swap the gold it still holds overseas at the Bank of England to Goldman Sachs.

 

The gold it still holds overseas! I think that is maybe key. There is none, as Germany also has found out! And to make good gestures to bad deeds, they have "agreed" to lease it out.

They can't invade the UK and take it, can they? Especially if it is not there.

 

 

 

reload's picture

Remember the recent photo op of the Queen visiting the BOE - LINK TO PICS BELOW

http://www.bullionstreet.com/news/british-queen-visits-bank-of-england-g...

The BOE realy want the world to believe it is still there - but if it is....how many claims upon it?

USS Bernanke's picture

So let me get this straight....

Chavez asks for his country's physical gold back from western world central banks.

Chavez dies.

Western world central banks repurchase previously recalled gold.

...

Herd Redirection Committee's picture

Sure, but its not like intelligence agencies can give you cancer....  Right?  Right???

Squishi's picture

Socialists Hate Gold!

Gringo Viejo's picture

Yeah, they're selling their gold. But if everybody gets a free XBox out of it, who's gonna give a fuck?

SilverIsKing's picture

Everyone in the country will get a Samsung tablet and use these tablets to mine for Bitcoins.  In a few years, Venezuela will be the richest country in the world.

TwoCats's picture

30 million people * 3-4MH/s = 120 THash/s, optimistically.

Seeing as how the mining network is running around 4300 THash/s already, and increasing exponentially, this is a fairly unprofitable endeavor.

BigJim's picture

Tut tut. This is socialism, and here you are trying to put profits before people.

kensdad's picture

1.45 million ounces?  That's just one day's worth of manipulation.

chdwlch1's picture

Not if you count fractional reserve banking rules and rehypothecation!?!?!

ForWhomTheTollBuilds's picture

Unfortunately at this point we it appears we can look forward to:

 

- Gold falls hard on news yet another country is "unloading huge amounts".

- Gold does nothing when it is proven JPM holds it down on behalf of BIS using paper derivatives

- Nothing happens when comex moves to cash settlement.

- Nothing happens when london moves to cash settlement.

- Eventually "gold price" collapses to $0 as people leave "gold market" where they cannot get gold.

- Newspapers print extended coverage of the collosal blunder of hoarding shiny rocks.

 

Then we find out the true price of gold.

 

Problem is, this is all anywhere between 1 and 10 years away.  I hope people bought their phys in the spirit of insurance rather than "all-in" cause its gonna be a long ride.

daveO's picture

China bought 300 tons in August. Worldwide production for August was around 175. Prices for paper may go to zero, but real gold will be Chinese priced.

ForWhomTheTollBuilds's picture

Im starting to think the FOFOA crowd has the right idea, at least about gold going officially to $0 and then no gold price for a while until we start hearing about what its selling for among the elites in the cash and carry market.

y3maxx's picture

...Even up Trade for Venezuela/Goldman Sachs...Tungsten filled Gold for Tungsten filled Bitcoins

Dr. Engali's picture

That makes a lot of sense. Trade your gold which will last forever for some cheap Chinese flat screen teevees which will last a couple years.

fonzannoon's picture

That is what scares me the most Doc, they traded that gold because they were desperate for....wait for it......dollars.

So while we sit here all day and talk about helicopter ben, the truth is almost everyone is so starved for dollars that they will part with anything for a few of them...which Ben is happy to hit a few keystrokes and create.

Blows my mind.

Dr. Engali's picture

It's amazing how quickly they will destroy their currency and come crawling back to the Bernank.

john39's picture

precisely the reason you don't military force to control most countries, including the United States.  The power of the printing press is almost unstoppable.

Bay of Pigs's picture

It is truly a sickening sight to behold. The Moneychangers destroying entire countries like it's a game of Risk.

Until velocity picks up from the printfest, or someone says "No Mas" on the USD, I guess not much will change?

Kaiser Sousa's picture

"So while we sit here all day and talk about helicopter ben, the truth is almost everyone is so starved for dollars that they will part with anything for a few of them."

not me...it all starts with the "1" bro...

this shit will never end until 1 by 1 those that UNDERSTAND exit their paradigm to the greatest extent possible and choose to save and accumulate not worthless debt coupon dollars but their most hated enemies.....PHYSICAL GOLD AND SILVER...

this is a fucking war man...you think their gonna let you walk away form them without doin everything possible to keep u entrapped??????????????

no pain....no freedom....

Kaiser Sousa's picture

further proof it can and is being done and they can b defeated...

"The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.

“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting."

http://www.bloomberg.com/news/2013-11-20/pboc-says-no-longer-in-china-s-...

exit their paradigm...

 

Alpha Monkey's picture

Why deal with the US at all when China could probably fulfill their desire for dollars and anything else they need no problem, especially in exchange for some shiny.

 

Something stinks about this Modura character.  His policies are too over the top, he's requested and been given dictatoral powers, and now he's giving his gold back to America... western mole?

daveO's picture

Don't worry, Maduro gets his kickbacks in gold.

ChaosEquilibrium's picture

Why would GS be buying Gold?

 

I believe GS came out last month indicating Gold was only going DOWN........

 

Again, Why would GS be buying Gold?:):)

 

I hope I survive the carnage to hear(months or years later) about blood in the streets of SOHO, TRIBECA, PARK and the winding roads of Thee Hamptons!!!

TeamDepends's picture

Commence shearing of muppets in 3 2 1....

NIHILIST CIPHER's picture

Who do you think put Maduro in power?   Golden Slacks "winning".

fonzannoon's picture

That is pretty amazing. Venezuela is no different than joe six pack barfing up his grandmothers kruggerand at the cash for gold store to keep his lights on for another month....and goldman gets that gold and hands over some freshly printed pieces of paper.

Fuckin amazing.

Kaiser Sousa's picture

fucking stupid depressing is what is...

Chavez should crawl out the grave and pimp slap the fuck out of Maduro....fucking sellout mother fucker....

FUCK YOU GOLDMAN COCKSUCKER SACHS...

employees of this parasite should be punched on sight....

ParkAveFlasher's picture

Chavez made this all possible. 

Kaiser Sousa's picture

no thats total bullshit....

the MoneyChangers have made this and all else possible...

and it ends when the world rejects their worthless paper and exit their ponzi paradigm....

Gold and Silver = Freedom and Liberty...

"debt is the money of slaves...."

now go back to school and learn somethin....

Bay of Pigs's picture

I junked you Park for criticizing Chavez from taking delivery of their gold from the crooks in London.

He was certainly no saint, but your point is wrong on the gold issue. He dared to challenge them, and that takes some courage. Something we see so little of these days. Especially in the USA. Bunch of brain dead fucking sheep following Barry O and the Banksters down the path to utter destruction.

MxBonanza's picture

I thought that getting the gold was a good idea too. Not anymore, Maduro is destroying businesses with his new unlimited powers. He is blaming the burgeois parasites (store owners) of the inflation he has caused. After he finishes with all the remaining stores, his only way out buying some time is to sell ALL Venezuelan gold to The Squid and The Morgue.

The manipulators are celebrating Maduro's moves to destroy Venezuela.

Good bye Venezuela Gold. It is just about time.

Bearish for now.

ParkAveFlasher's picture

Junk away.  The only thing I - or anyone else here, assuming Sean Penn isn't a regular - absolutely know about Chavez is that A) he was a tyrant and B) he was a tyrant of a South American oil-rich nation that never stopped dealing with the US.  You don't become a tyrant in a third world resource-rich nation without the proper financing or logistical support from a certain customer of yours.  Assuming all that I've said, can you really assume that all was as it seemed with the whole Chavez-gold thing? 

Hippocratic Oaf's picture

Whats also amazing is the monkey hammer that goldman uses to crush phys before they 'do you a favor' and take it away, giving you fresh print paper.

Next up..................gold goes to $1500.................GS wins

q99x2's picture

If Venezuela was any kind of country they would arrest Goldman Sachs and feed them to piranha.

walküre's picture

Brilliant. Swap gold for trinkets to keep the people stupid and happy. Happened before and then they lost their land.

fonzannoon's picture

It happens in the U.S everyday. People barfing up their possessions for a few precious dollars. India is trying to ban gold imports. I don't see any Indian Government officals swinging from lamp posts.

walküre's picture

India is a gigantic corrupt backwards cesspool. The ruling elite is so deeply rooted in their power structure, they never need to worry about swinging from any lampposts. Just avoid India and anything related to India like the plague. Just be glad that India is not sharing a border with the US.