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As Chavez Pulls Venezuela's Gold From JP Morgan, Is The Great Scramble For Physical Starting?
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.
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Ahhh, what's a couple of hundred pounds among friends? It's only gold.
C'mon - you know Hugo asks for what he and they both know they don't have and instead of the gold Hugo gets all kind of "other considerations" and leaves his "gold" in the "vault". Sorry but I doubt Hugo can't be bought off.
Agree.Just bargaining for something else.
More like a blackmail.
or the antidote...
"We promise NOT to nuke you if you shut up about your fuckin gold. That's our offer that you should not refuse."
Are you kidding? Dimon would just deny that Chavez has any amount of gold on deposit. A little paperwork will transfer the Venezuelan account holdings to a U.S. entity (not the Treasury, because they will spend it), then the SEC will promptly shred the paperwork, followed by a message from the Teleprompter in Chief (delivered by Barack Obama) that there is no way in hell he is going to make his BFF give gold to mean old Chavez.
A simple, NO, and what's chavez going to do?
Start the great scramble for physical when he tells the world they won't deliver?
I dunno...stop exporting oil???
Yup
I tend to suspect that any gold placed in Venezuelan government vaults will quickly be replaced by gilded tungsten. The real gold might appear back on the market fairly quickly. Or perhaps it will just sit in the secret vaults of various government officials.
That's what I saw earlier at GATA and confuesed the gold mine nationalization story. All better now.
Yes, the scramble for physical is surely underway, but one has to remember Hugo also saw what just happened to his good buddy Gaddafi, getting his assets frozen in the USA. he doesn't want that to happen. To wit, I think this is also pre-emptive against expected US retaliation against some coming Hugo mischief, which will probably be Chavez letting Iran put those intermediate missiles in Venezuela.
They've been preparing the sites, and Iran now says they have the missiles. While they still have a wimpy accomplice in the White House, they'd be fools to wait.
yeah right
"pre-emptive against expected US retaliation against some coming Hugo mischief" ... like having the audacity to sit on oil that is rightfully ours
No, pre-emptive repatriation of gold and $$ totalling $25 billion with the open encouragement of China, Russia, and Brazil. Venezuela's oil, no problem.
Domestic US politics in an election year may see calls and posturing for some sort of action against any Iranian missiles. Chavez is taking these chips off the table. Gadaffi was caught flat footed. Too bad Chavez has cancer. It'd be a dirty rotten shame if he is laid to rest next to Bolivar before the gold arrives.
Intermediate "defensive" missiles right...???
I think you're spot on!!!
They could always give them 50 ounces of silver for every ounce of gold they are short....
plenty to go arround...
How about 15kg of silver for every ounce of gold owed(in the form of a cruise missile).
Bullish for silver! Hell all US wars are bullish for the metals, in both consumption of the metals and the infusion of fiat to fight them. All non American gold bugs should be cheering the USA's suicidal militarily endeavors.
true, exactly when have wars been good for the non-metals in our economy and how long have we been feeding on this historical bullshit
I've read about the 15Kg somewhere else, and there's no way that a Tomahawk contains 15 Kg of silver, check your facts.
Well, I just spent an hour searching for any credible source on the content of silver in a tomahawwwk missssile and the end result is....
...a sh!tload of silver blogs refering back and forth to each other as source references on the actual content. Nothing concrete after viewing over 150 websites. I smell a biased rat.
I'm pretty sure it's not true. It was more of a joke than anything.
Would you pesonally prefer that?
The joke is that there is not enough silver to do this, either.
Remember how Goldfinger killed that babe Jill Masterson in the movie. He had her painted head to toe with gold paint leaving no part of her body uncovered hence she died from asphyxiation (sp). It seems that would be a great way for the honorable Fed chairman to meet his maker, Satan.
Bernank will be busy sitting in his mom's basement trying to figure out how to create physical gold out of thin air.
We will get to see if Jim Sinclair's parabolic move from 1765 hits. I think Hugo reads Jim Sinclair and Zerohedge.
You don't think those people waste time reading, do you?
Well, other than going to HuffPo to stroke his ego, that is.
Bye bye Hugo. Say hello to UN troops and dissent. It's for the children you know.
Like we did in Libya?
Nato and the UN are spent and cant do anything to Libya. I am quite sure Hugo as long as he avoids the cruise missles and drone attacks will be fine.
Luckily GE is moving production to China, so they should be able to restock fairly quickly.
and remember, past sixty, he doesn't need congressional consent, just relabelling. Is anyone ever going to challenge that?
How much of your assets are in physical? 10%? 20% 50%
Also, sure feels good to have me some gold.
http://www.youtube.com/watch?v=YAn_T4D2kww&feature=related
About 27%. Seems to be large enough as a safety net.
Well, about 70%, but, of that, about half is in the etn PHYS, other half in coin. Considering liquidating PHYS and goin all coin. Any opinions on PHYS?
Thanks in advance.
Go to fofoa.blogspot.com. The latest post in the last couple of days has several historical videos of FDR and others explaining to the American people the reasons for the 1933 bank holiday and necessity for confiscation of gold and conversion into cash. A few months later (which the blog doesn't mention in this post), FDR revalues (devalues) the dollar from $20.67 / ounce to $35.00 / ounce, a 40% haircut. Those that kept their gold made out quite well in dollar terms. I don't want to be vulnerable to a haircut, so my gold exposure is in physical bullion only. Hope this helps . . .
Wow. Thanks. I knew some of this history, but this string of videos really helps put our current situation in perspective. For a youngin like me, it's easy to think that what's happening today is unique or new. Good to see that it's not, and to see a broader historical context.
I love this site.
It's the best there is. Glad you like it. You have months of catching up -- it's paradigm shifting and FOFOA is a financial genius like none I've encountered anywhere . . .
could it be that he is using the nationalization of his gold mines to threaten to shut all production down if the Morg doesn't give him his gold back in a timely manner ?
So Chavez has some big stones or he's really mad. He's sending a big finger FU salute to the west.
Or he's been instructed to do so by TPTB in an effort to start up "hostilities."
We all know that WWIII is coming (gotta cover up the financial crimes somehow), and this may be the next "Shot heard 'round the world" needed to declare Chavez as an evildoer bent on destroying the world's economic order.
could be...
Chavez may be the next Ruler of the World!
Beats me. Agree with him or not, it's hard to not give him some credit on this one, though.
OT, Dylan Ratigan returned to MSNBC on Monday, after the leave of absence apparently brought on by his Howard Beale rant last week.
He is not contrite. He's leveraging it, imo.
Strong recommendation that folks start paying attention to Ratigan. He's developing an online "People's Constitutional Convention" (my term, not his) for the purpose of getting a real constitutional ammendment passed that will bar private money from politics. As he pointed out in launching this thing, he has never crossed paths with anyone who disagreed with that proposition . . . so surely in a democratic society getting people involved in solving the problem will make all the difference!
He's drafting every single guest who passes through his show as a signatory. They keep thinking he can't be serious . . . he's more serious than a heart attack in the sauna or a dog leash suicide.
The guy's on fire.
Dead man walking.
Both perhaps.
The mother fucker is walking . . . and doing it on corporate tv! He has a serious ex-lobbyist who promised, Monday on air, to write the copy for the ammendment.
He ain't a smooth communicator, but Ratigan is still a complete trip.
Chavez has a role to play. They'll kill a Kennedy instead.
nice
we need that amendment but exactly how will that happen with this utterly corrupt system? They've gone the other direction and the Supremes have ordered no volume limits along with human corporate identity. This will be resolved in the streets not the hallways
Who is left? Caroline?
Funny. I sent someone (ok ...a few people) the video of the Dylan Ratigan rant and I called it "Dylan Ratigan has his Howard Beale Moment".
I agree he's on a roll and that rant was simply gorgeous.
more more more!!!!!!
Howard Beale was unmistakable--I called it just that here at ZH while it was in progress. It was what it was.
Apparently, though Ratigan has publicly confessed to being a regular ZH reader, his current work does not meet criteria for official ZH notice.
The sad thing is that it's only about who he currently works for, imo. If he were still at Bloomberg, I think his name would be on the tip of every tongue around here.
Of course, he'd be out of a job. But WTF does that have to do with it?
Hahaha!
TY for the laugh ... next ruler of the world, hahahaha.
While Dylan and me may not see eye to eye on many subjects, we agree on this one. I love the fire in the belly this guy has. He is the antithesis of the apathetic sheeple in the US.
Now deemed a white al qaeda and enemy of the state.
Chavez, if his people riot and demand his ouster, needs the gold underfoot to take in his luggage, just like all the other crooks. If it is housed in a JPM vault, the world community can freeze it.
Note that just because Hugo is taking delivery, that implies nothing about where the delivery ends up.
Paging Ragnar Danneskjold... Captain Danneskjold to the Atlantic seaboard, please...
The keg is empty and there's going to be a lot of angry drunks.
I give that one 4 snaps Party! ++++
Why nationalize and THEN get your gold back? Why not get the gold first? What's the thinking here?
maybe a shot across the bow, "give 'em something to think about". I wonder when the Obama admin was apprised of this.
I guess, if the amount of gold in the mines outstrips that in the vaults. But if Chavez wanted to prevent the international community from intervening, he should have been slowly withdrawing before nationalizing... not so strategic the way this has been executed by my read.g
agree with you, something is afoot. My bet is he has cover from somebody else that is or think it is a power...
I had an investments professor who used to say: "a rare man learns from his own mistakes, no man learns from the mistakes of another." Well, it appears that Chavez is "no man." He's watched and learned from the mistakes of Mubarak and Ghaddafi--if the bling is not in your possession, then it will be out of reach when the shit hits the fan.
Either Chaves is anticipating the shit hitting the fan in VZ or he's preparing to make a few gifts causi mortis, or both.
Actually he is dying and he has figured out a way to take it with him. News at 9:00
Well, it's about ruddy time!
---regards, Hugo
collaterallized gold debt. Each holder gets one share of Milo Mindbender Inc.
4 snaps to Frodo as wel. ++++
OT:
Alisdair Macleod (of the clan macleod), a big Fed critic, says no QE3 but something else, possibly from repo bond market sitting on sidelines. FinanceAndEconomics
Excerpt:
"The development of the repo market is the way to getting the NBRs (non-borrowed reserves) put to constructive government use. Given that short-term US government paper is seen as the lowest investment risk and the highest quality collateral, gearing up a reverse repo fifty or even a hundred times is a no-brainer. Theoretically, that $1.76 trillion of NBRs could fund nine times that amount of government debt, or more than doubling it to $30 trillion. The point is that the successful development of the repo market in this way is an obvious and more powerful solution than extending quantitative easing."
Comments?
is this akin to, or aka, Operation twist? Is this also retail inflationary, as well as supposedly increasing asset prices?
"constructive government use"!!!!!!!???????
Hey crap! From an earlier discussion...is this who has been "protecting" the lads over at S&P? (joking...kinda).
Those damn Gulf/Caribbean dictators,
No not Castro, No not Obama,
the other one, Chavez, always causing trouble.
Wouldn't it be interesting if while we were waiting for silver to bust the banks it was instead gold?
White Swan!
My uneducated opinion tells me that OPEC has begun their diversification plan.
Yup
Nationalizing the gold mines, huh? We know what that means. The managers will leave, the engineers will leave, the equipment will break down, the miners will organize and picket, and then no more gold production from Venezuela. That's bullish for physical.
I think a two minute phone call to the Chinese ambassador could solve the production problem and the picketing problem, if there ever were such problems for Sir Hugo.
Chinese have helped stop the slide in Zimbabwe and are actively getting minerals out the ground and exploring.
Exactly right as you infer so well that this is exactly what has happened many times when the oil industry is nationalized.
Anyone who invested in Venezuelan gold mines deserves to lose their money.
There is an old Greek saying: A malaka and his money are soon parted.
I wonder if those who hold financial intertest in Venezuelan mines have recourse to put
claim on that gold in U.S. controlled bank through the U.S. courts? If so things
could get dicey.
Whoa, the USA are definitely going to war with Venezuela as soon as they can.
This report just makes my day. Never before in the brilliant 200 year history of Zero Hedge has any report made me happier than this one did. I wanna see heads at JPM rolling down the sidewalk for their sordid history of manipulation, theft and general ass raping of the entire American population. But this is a good start.
With regard to those Iranian IRBMs and their reported upcoming basing in Venezuela (3300 km distance from Caracas to DC), there's this:
April 22, 2011: The U.S. Navy has successfully tested its Aegis anti-missile system against an IRBM (Intermediate Range Ballistic Missile), similar to those used by Iran. The IRBM was launched from Kwajalein Atoll (in the Marshall Islands) towards a patch of ocean off the Hawaiian Island, 3,700 kilometers distant. Within eleven minutes of the IRBM lifted off, a long range X-Band radar on Wake Island (north of Hawaii) spotted the incoming missile, passed the data to a U.S. destroyer off Hawaii, which calculated the flight path of the target and launched a SM-3 Block 1A missile, which destroyed the IRBM. This was a test of the land based Aegis system that will be built in Europe to protect against hostile IRBMs. http://www.strategypage.com/htmw/htada/20110422.aspx
I guess all our beloved politicians will be safe. Thank God!
I found this unbelievable until I found that the source was the U. S. Government.
Had a small part in this one, and it's a done deal now.
http://www.youtube.com/watch?v=6GeRfinQP60
The next generation is rolling down the pipe already, and the complexity of the systems involved make this one look like a tinkertoy project.
If there's one thing we're good at, it's blowing shit up in high-tech ways.
Me thinks Hugo will retire to Sneem Ireland soon....................without the Gold
Paris photo show recalls de Gaulle's Irish visit - The Irish Times ...Or a "stroke"?
Good lord this website is Iike a fuken soap opera for power crazed adrenaline junkies. I'm on the edge of my seat here... I smell a war a brewin'
Side note: I don't condone or wish to glorify war but let's face it...there isn't enough phyz to cover the paper. If Chavez and the likes begin demanding their booty it's gonna get real...fast
Admit it; you love it too. ;-)
I do ,i always loved gadafi and chaves, because they are the most entertaining politics of the world.....
I've always admired Gadafi's vast selection of sarongs.
You're born with style like that.
You mean this?
http://www.huffingtonpost.com/2008/02/05/john-mayers-borat-moment-_n_851...
Ouch.
OOof!
Please pass the mental floss.
Thank you for making me straight God. Thank you!
dammit, now i can almost hear the strain of keeping that rubber band stretched....dammit!
Good lord this website is Iike a fuken soap opera for power crazed adrenaline junkies. I'm on the edge of my seat here... I smell a war a brewin'
Side note: I don't condone or wish to glorify war but let's face it...there isn't enough phyz to cover the paper. If Chavez and the likes begin demanding their booty it's gonna get real...fast
If you wanna be a winner stay calm while all others around you are losing their heads...
And don't over do the meds!
So far, no reaction in Access trading.
Down $4 from today's highs.
Nothing to see here, Venezuela is too small of a factor.
Gimme a hedge fund that is willing to sack up and take 300 tons off the COMEX by taking physical delivery from paper contracts.
Then, you will have a real panic.
Until then, Chavez is just blowing smoke.
I believe a similar announcement out of Germany would rattle the access mkt...
"Net-net for the better…wouldn’t you say Larry?" - Austin Goolsbee 05/29/09
http://news.goldseek.com/GoldSeek/1244050251.php
Goolsbee's a fucktard \ what's that quote from an article comments yesterday? He can go buttfuck himself in the face.
Those Comex contracts can be settled with SLV and GLD paper, which is why you don't see guys like Sprott trying to bust them. The "bust the Comex" mania is just a bunch of internet guys spewing disinformation, trying to be fear-mongering attention whores.
Till it's not.
i'll take the other side of that trade..
Could this be the Black Swain event?
You sure it's not black swine?
You know things are screwed up when Gadhafi and Chavez are the good guys. Next thing you know Charlie Sheen will start making sense and French food will taste good.
The effect of a Pan Galactic Gargle Blaster is like having your brains smashed out by a slice of lemon, wrapped 'round a large gold brick.
Try one today! http://en.wikibooks.org/wiki/Bartending/Cocktails/Pan_Galactic_Gargle_Bl...
Listen, can you get me some janx? I really need some janx.
So Venezuela wants its gold back and from J P Morgan no less! I am sure we will be informed that the CIA has irrefutable proof the Venezuela has WMDs and is about slaughter it's citizens. Preventive air strikes are about to begin and the 6TH fleet is steaming to the area. Long live democracy and freedom!
yep classic humanitarian assault should do the trick. better let 'NATO' take the in the lead role for better US voter digestion.
bullish for ag
I got 99 problems...
and getting my gold is one...
Speaking of bullion vault depositories, anybody heard of:
Delaware depository and Entrust? Very grateful for any comments or insights. They're alot less than say Bullionvault or Goldmoney, they store in Delaware, hence the name.
Delaware Depository has been around forever, but trust no one. Keep it "cool, dry and nearby"!
Tuco Benedicto Pacifico Juan Maria Ramirez
In an IRA though - no choice but to use a vault location.
Agreed.
yes. tyler put the CME gold depositories up; here's the full report DJ Comex Gold And Silver Warehouse Stocks-Aug 17 (attempt paste)
DELAWARE DEPOSITORY
Reg 4,263,767 0 0 0 0 4,263,767Elig 16,744,617 1,090 1,146 -56 21,947 16,766,508
Ttl 21,008,384 1,090 1,146 -56 21,947 21,030,275
they are a crimex silver bank and depository. many week/moons ago, when zHeads were discussing how to hold physical, there was a glowing report from someone about this company, which went unchallenged. i have no direct or personal knowledge, other than the crimex reports.
sorry i can't be of more help, dogg. as always, with counterparties, read the prospectus and terms. and pray? now i see your IRA post. as i looked around, i saw the Entrust page online, too.
Help Wanted:
Alchemist with experience converting lead into gold...........$
I have a new conversion model (patent pend.) that takes a basic ag commodity and through a simple manipulation via a textile process, will produce 99.9, guaranteed.
Get back to me ASAP.
Regards,
Rumpelstiltskin
Is radioactive gold ok?
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/10/AR2007051001517.html
There is a reason countries store their gold in each others banks. Without that collateral Hugo's companies now have to pay cash for everything...
Good point
Chavez will have to accept a cash settlement, I suspect. He has a right to the gold, but there is that "possession" thing.
Sad to say, but, If push came to shove I’m sure the U.S. Government would loan JPM whatever gold they needed to settle up with Venezuela from the vaults in Fort Knox. Call it TBTF bailout version 796b. For collateral, they would probably accept some junk CDO’s, MBS, or OTC gold swaps at face value, if not just the solid reputation of one of their masters.
Who says the U. S. Government has any gold. Ft. Knox hasn't been audited since 1953.
+1
Empty rooms don't need audits.
They just don't take very long.
Things are finally about to get interesting. :)
you think so?
Next they will say aliens helped move the gold to an astroid on a 3,652,500 day orbit around the solar system; and Chavez can get his 10.6 ton when it crashes back on earth.
is the great scramble for phys starting? nope. well, maybe its 11th year!
here we see the august total for deliveries: DJ Comex Gold Delivery Intentions Breakdown - Aug 17 let's Do The Math: 6,295 contracts = 629,500 toz.
1 metric tonne = 32 150.7466 troy oz
so, 629,500/32, 151 = 19.6 tonnes of gold bullion delivered on crimex in august, to date.
also 99 tonnes = just under 3.2 MM oz X $1788 = $ 5.72 Bil. peanuts. but gold peanuts, BiCheZ! chavez can get the bullion in london from the BOE. or not.
3.2MM/11.5MM = 28% of total crimex "bullshit" inventories, IF crimex delivers for london, here.
how about a show of hands? how many of you, if you wanted to buy 100 toz of pure gold, would order it from the crimex? early poll results here @ 7!
Chavez should have held allocated gold. Poor thing may have to settle for a paper IOU.
hahaha! hey, gwar! if the BOE announced, "we have received a notice from slewie & gwar to deliver their 99 tonnes of gold" would we settle for paper?
We would send them a firm message, "All your gold is belong to us!"
L0L!!!.."....BiCheZ!!!"
Apparently Hugo had "zero hedge"!
I have not been able to send any interesting posts onto my friend in weeks. As I think this is a game changer in the ownership of precious metals, I wolud love to send it to my friend as we are alone in the wilderness here. We are trying desperately to alert our loved ones to the fact ,not the possibility that the system is BROKEN, Why do I keep getting the same message? You cannot send more than 3 messages in one hour!
bottom of the ocean...final destination for fiat gold and fiat terrorists.
+2
Just a little perspective... the Venezualan gold reprepsents 2.6 days of oil production or about a week of net exports....
"Applying this perspective to monetary policy, the Fed promises – i.e., threatens – to maintain its failed policy of suppressing short-term interest rates, thereby punishing savers and promoting debt accumulating and consumption. This is an inflationary policy, which will continue to fuel the cost pressures that are already unfolding at many US businesses."
Read more: Economic News and Ideas on Debt, the Market, Gold, Oil, and Investing. http://dailyreckoning.com/#ixzz1VKMVk5njWho has more slave blood ? 1. Moochelle Obama 2. Hugo Chavez 3. Barack Obama Monedas 2011 Comedy Jihad Miners Expropriation World Tour Answer: Surely Welfarefart (Smile, you're on my world tour !)
who gives a flying fuck? tip e. 2012 stick yo ignant sheeit back up yo ass world tour
Annoying little pest isn't he? Not very funny either...
I live to inform, perform and entertain myself ! I'm not some altruistic Socialist entertainer ! Monedas 2011 I never said my humouristic offerings were for everyone ! I am doing more to promote my craft than Barney Frank does to promote the right to live an openly gay lifestyle ! Get swishy Barney and get to the head of the gay pride parade !
Definately not for everyone.... last guy that I heard rambling like you was having a flashback, of the purple microdot kind, if you catch my drift...
Take a hint, get some new material...