Gold Nears $1,900 - Venezuela Formally Requests Gold Holdings Held By BOE Ship By Sea

Tyler Durden's picture

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Mongo's picture

If that ship reaches Venezuela it will be nothing less then a big surprise.

Pladizow's picture

Will Russian or Chineesse ships accompanyed by milatary forces be used?

40 ships definitely diversifies the risk of failure of delivery.


Bullionaire's picture

JPM:SILVER now negative for 21 days.


Suck on THAT, Blythe.



Two Towers AU AG's picture


Check this out guys.. not sure if the people of India will ever stop consuming gold.. 1000 tonnes of Phyisical Gold being imported this year...

Coast Watcher's picture

"40 shipments will be needed to carry the 17,000 400oz bars by sea."

Why the hell do they need 40 shipments to move a couple of hundred tons of anything by sea, much less gold?

Pladizow's picture

They dont "NEED" 40, they have just thought this through a little bit more then you have!

Coast Watcher's picture

Well, please enlighten me!

Sgt.Sausage's picture

There's an old saying, I can't quite remember it - something about "eggs" and "one basket" - I'm sure you've heard it.


Pirate/hijack/terrorist/common-burglar - if they manage to take a boat, they only take 1/40th.

Weather, huricane, tsunami, whatever - if it hits, it only hits for 1/40th.

Have you been enlightened, young Grasshopper?

Pladizow's picture

Thank you for the assist.

One plane, on one date, in one place VS. 40 ships, on several dates, in several places - that will probably have Chineese or Russian military escorts.

Which represents a greater risk??? (rhetorical question)

Thorlyx's picture

nice tits by the way.....

Coast Watcher's picture

Not so rhetorical, given the reliability of air and ship travel. The odds of losing one or more of those 40 shipments are considerably higher than losing one large shipment.


Have you been enlightened, grasshopper?

falak pema's picture

I don't think he'll ever "get it". He only has ONE pair of boobs to gawk at. None to spare like Hugo does with his bullion rods.

OS2010's picture

Sgt, you beat me to it!  What are the odds of a surreptitious (friendly) "hijack" and blaming it on the US?

Mae Kadoodie's picture

Have the Somali Pirates expanded their operations across the Atlantic & Pacific as well?  Perhaps Capt'n Jack Sparrow is aiming to plunder Chavez booty?

Sgt.Sausage's picture

I'd be more worried about Ragnar Danneskjöld than I would about Cap'n Jack.



passwordis's picture

 I think you should think it through as well because it's not going by 40 ships.. LOL. They wouldn't announce the details of transport to the world. LOL!!    The gold is going by air!   

This way Obama and or Israel can't claim Terrorists are riding shotgun and steal the gold.


The Man in Room Five's picture

Just go after the one that's riding low... /italian job

agNau's picture

Osama knows the plight of shipment at sea. It is even today, fraught with danger and uncertainty.
Would it be possible that even with Chinese guard, passing over the "Laurentian abyss" ........a sinking tragically occurs!
I hope all the Tungsten makes it to Venezuela.

ZeroHour's picture

The future headlines will look rather strange:

"Guiness has just verified the worst luck a single country has ever had after Venezuela's 40th gold-laden ship sank from a "malfunction".  All 40 ships have been lost at sea.  Leaders of that country could not be reached for comment."



Red Herring's picture

Ruslan (Antonov AN-124), with a payload of 120 tons, and some "escort" would do the trick, no?

Spigot's picture

Ex-act-ly my good Pladizow.

We shall see who is contracted to transport these bars...

Sofa King's picture

Why don't you just paint the damn ship white and paint the word Gold in big black letters on the side.  I think LLoyd's will be more than happy to pay out on this claim.  It will essentially be a huge exchange of paper for gold.  Fucking brilliant way to fill up Englands coffers with gold again.  All thanks to that brainless moron in Venezuela.

Iam_Silverman's picture

"If that ship reaches Venezuela it will be nothing less than a big surprise."

Not really - the big players, the ones with enough resources to take the gold probably know that what he is getting is the Tungsten Bar Special (on sale now!).

Nothing To See Here's picture

Well we know the biggest player is no threat even if the ship is full of real gold. Even if the Bernank was to find the ship wrecked on an island with its content intact, he would leave it there obviously. Who in his right mind would pick up such a load of barbarian tradition?

Anton LaVey's picture

I respectfully disagree: you can bet the Venezuela Central Bank first task will be to test a large sample of the bars delivered from London.

If some, most or all of them are found to be gold-painted Tungsten, all hell is going to break loose on the PM markets. Gold prices would then go to the stratosphere.

Hulk's picture

That ship doesn't reach Venezuela , the ensuing panic will light gold on fire. This operation has to be pulled off perfectly and the bankers know it...

sudzee's picture

Bank of Canada has 0 gold. Will have to borrow from Sprott.

Smiddywesson's picture

Excellent observation.   All paper gold has risk.  Is SGOL, the Swiss fun any safer?  Snippet from a Canadian article: 

Selling our 109,000 ounces would yield about $196 million today. Perhaps those who crow about Canada's balance sheet and bulletproof financial system should keep this paltry total in mind as they denigrate our neighbours to the south for their debt troubles.

Canada had 21 million ounces -- 653 tonnes -- before 1980 when gold sales started, according to a 2002 Reuters story that I found. The article relates how Canada "took advantage of the sizzling price of gold" to sell 1/8th of its remaining gold reserves. That sizzling price? $350 US an ounce.

samsara's picture

Read WHY Canada sold the Gold.  Reagan, CIA,  deflate the price of Oil, And Gold.  USSR's (at the time) source of hard currency.


"If Canada’s gold was instrumental, it is certainly understandable why neither Brian Mulroney nor his finance minister, Michael Wilson, would want to talk about it publicly. It would not have been helpful for our trading relationship with our ‘Soviet comrades’, if either of these esteemed gentlemen had risen in the House of Commons and announced that Canada was selling its gold in an internationally co-ordinated effort to bring an end to communist regime in the U.S.S.R."

HelluvaEngineer's picture

Sorry, I think they're gonna give it the silver smack down this week.  If they do, I'll buy more.

maxmad's picture

So far so good on that one!

HelluvaEngineer's picture

Remember what happened when people started chasing silver

maxmad's picture

looks like we may run up to 50 this week.... I wouldn't hold your breath on a drop!  Even if there is no direct QE3 announcement at Jackson Hole, I would still expect a pop in PM's....

DB Cooper's picture

The Dollar (paper) was the real bubble - gold going up only reflects the fiat bubble bursting.

bullionbaron's picture

Gold is really pushing the price boundaries that are possible given the current Gold/Oil ratio.
Ratio currently sitting at around 23, however history shows that it struggles to hold above 21.
Lower Gold prices on the way short term in my opinion.

Smiddywesson's picture

Those ratios are no longer very useful.  The game has changed completely for obvious reasons.  Supply and demand matter most when the manipulators of price constitute such a large percentage of the demand.  They can only push prices lower if they can hold their conspiracy together and collectively stop buying on the dips.  But this isn't 2008, and the conspiracy isn't as strong as it used to be.  The Chinese are not playing along, and now Venezuela left the pack.  Who next, panic buying from the Canadian central bank? 

bullionbaron's picture

Why are the ratios no longer useful? Is it just the Gold/Oil ratio or are you suggesting all ratios are now obsolete? You don't think we'll see 1:1 with the Dow?

Venezuela want their Gold? I remember reading Germany asked for their Gold a couple of years ago as well... what happened to that?

I do think Gold has a long way to run higher in this bull market, but I also think it's at or very close to a top right now (a SHORT TERM top). Happy to be wrong as I am long metals with around 50-60% of my capital right now...

Jim in MN's picture

Gold:Dow 1:1 at 5,000 is a pretty fair guess IMHO

As for oil, well let's let the ratio tell us.  At 20, it would imply $250 oil.  In US dollars.  In yen or euros, well...interesting question.

If Bernanke continues to devalue $250 oil may be just about right.  Even if there's no sneak peak in oil.

Spigot's picture

That is my approximate target as well: $5000 for each.

Its going to be one hell of a ride, IMO.

h3m1ngw4y's picture

if you panic, panic first. and panic without sound

mess nonster's picture

There seems to be a strong resistance ceiling in gold/oil ratio around 30 barrels/ounce. A breakthrough will indicate a PO (permanent) production squeeze that will indicate a prudent jump into oil.

Oil is useful... until it is all gone.

Gold has no use whatsoever. But it is forever.

RockyRacoon's picture

Gold has no use whatsoever.

True.  That's why it works so well.  One of the least mentioned features of what makes a good preserver of wealth is that it be a luxury, or of no use other than it is what it is.   Other factors such as scarcity, divisibility (portability), inertness also are present in gold.   If gold had a large function in manufacturing or other areas that would diminish its preservation it would not serve so well as it does today.   Finding out that a large dose of gold in some medical format would cure cancer would reduce gold to a mere commodity, and that would reduce its role as a wealth preservation medium.   The "price" is high in absolute terms but very cheap when one considers a sudden, life-saving or high-tech application that would offer a high return scenario.  

tamboo's picture

hmmmm so why is it so valuable for eons?

one theory:

"445,000 ago, Ea, a Nibiran Sumerians call Enki, rocketed to Earth. Medical officers, 600 miners and 300 crewmen followed him to Earth to get gold to contain and shield Nibiru’s atmosphere. We of theTwenty-First Century use gold as a shield too, in spaceshuttle widows."

mom and dad will be demanding delivery of all of it soon as their planet gets back in town

akak's picture

Since this supposed planet Nibiru is presently nowhere to be seen in the Solar System, it must be moving at truly incredible speeds, in one hell of an elliptical orbit.  One has to wonder how the Nibirians fare during the 99.999999% of their year out somewhere in the Oort Cloud at sub -400 degrees Fahrenheit.  One would think that they would much prefer some enriched uranium for nuclear reactors, or even a nice thick blanket, to gold.

I incline more to the Leprechauns-with-pots-of-gold-at-the-end-of-rainbows theory myself.

The Man in Room Five's picture

This. so many people don't understand that you don't want your money to be used for anything else. My father's biggest beef with a gold currency is that we'd be wasting so much human labor and energy to pull a metal out of the ground that doesn't do anything. He doesn't get that it's a small price to pay for the self-optimizing market that emerges from the use of gold as money.

akak's picture

Anyone who would claim that gold is "useless" would logically also have to claim that policemen, judges, lawyers, composers, musicians, poets, entertainers, priests and monks are "useless" as well, just because they do not directly produce a physical, recognizable product for society.

(Well, I might concede the point with the lawyers.)

Mr Lennon Hendrix's picture

Gold has no use whatsoever.

Except that it trades for oil.

Badabing's picture

BOE says it will ship the gold via the coast of Somalia