Hugo Chavez Announces He Will Nationalize Venezuela's Entire Gold Industry

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Wed, 08/17/2011 - 16:21 | 1570277 bonderøven-farm ass
bonderøven-farm ass's picture

Ecstacy indeed......

Wed, 08/17/2011 - 17:04 | 1570506 caerus
caerus's picture


Wed, 08/17/2011 - 15:15 | 1569907 TruthInSunshine
TruthInSunshine's picture

The Bernank has busted out GASOLINE & IS TORCHING THE GLOBAL JOINT, bitchez.

Audioslave Gasoline


Fisher says "I am going to whack Bernank" -

Fisher doesn't want to be hanged along with The Bernank (see Jim Grant or Rick Perry's comments about The Bernank referring to this):

08-17 15:02: Fed's Fisher says 'enormous costs' to a QE3 with little benefit

Wed, 08/17/2011 - 15:13 | 1569909 cowdiddly
cowdiddly's picture

Now if he will just talk to his homies over in Peru, Bolivia and Mexico it will be ON LIKE DONKEY KONG. The world it waking up to how Wall Streets paper games are screwing them out of their countries natural resources.

Wed, 08/17/2011 - 15:21 | 1569943 Sokhmate
Sokhmate's picture

In my version of the game, rock beats paper. Always played it this way and people just never like me.

Wed, 08/17/2011 - 15:14 | 1569914 johngaltfla
johngaltfla's picture

Wow, "deflationary" and "Traditonal" all in one shot.

Wed, 08/17/2011 - 15:14 | 1569915 Motorhead
Motorhead's picture

I think that chemo is finally getting to Chavez.

Wed, 08/17/2011 - 15:15 | 1569918 machineh
machineh's picture


With a socialist government running the mines, employment will grow to hundreds of thousands (many absent or deceased), as output drops to zero.

Supply vs. demand, bitchez!

Wed, 08/17/2011 - 15:37 | 1570025 Ricky Bobby
Ricky Bobby's picture

My thoughts exactly, He will appoint his ignorant corrupt cronies to manage the mines. 

Wed, 08/17/2011 - 15:16 | 1569919 gwar5
gwar5's picture


I read that at GATA earlier --  sounds like China Russia Brazil are advising and using Chavez as a proxy. Also means that Chavez will very soon be up to mischief. He is getting his gold and $$ out of the USA, ahead of putting intermediate Iranian missiles in Venezuela, to prevent his those monetary assets from getting frozen.

Still, effectively monetizes gold that much more.


Wed, 08/17/2011 - 15:19 | 1569934 JW n FL
JW n FL's picture

we will end up with his gold and oil!

and he will get a brand new country.. infrastructure PLUS! Brand New!!

Blow it up! Build it up!

Wed, 08/17/2011 - 15:31 | 1569980 gwar5
gwar5's picture


Take that back a little, I read at GATA today that Chavez wanted his $25 billion in vaulted USA gold and $$ repatriated back to Venezuela. 

Nationalization of gold mines is different story. But honestly, I thought Hugo had already done this years ago along with nationalizing the Marriott Hotel and the golf courses. 

No mas chemo por mi loco amigo. 

Wed, 08/17/2011 - 17:48 | 1570655 JW n FL
JW n FL's picture

I think this is the 3rd time.. he has taken back the industry from the suckers who invested down there with him.

he is high risk and everyone knew that walking in.. if they didnt?

I had an offer to invest.. I passed.. I like down south the people are nice.. but not him.

Wed, 08/17/2011 - 15:17 | 1569926 faustian bargain
faustian bargain's picture

Keep at it Hugo. Utopia is just around the corner.

/sarc, just to be sure

Wed, 08/17/2011 - 15:19 | 1569927 speconomist
speconomist's picture

Why will gold dip? Because of this?

My rationale is that after nationalization mines will have less output because they will not be run properly, gold will not go to the market, etc. therefore boosting price, so... why would gold dip?

Wed, 08/17/2011 - 15:28 | 1569966 SovietCong
SovietCong's picture

I also don't see it as necessarily bearish for gold. If the reason, at least the official one, behind nationalization is that Venezuelan gold miners wanted export more and Chavez prefers to hoard it in his vaults, it would be somewhat bullish (somewhat because Venezuela is not really a market mover in terms of gold production).

Perhaps some could identify as bearish the fear that the gold expropriation Chavez-style would spread and other socialists, such as Obamao, would warm up to the idea. Even if this event in facts works as a reminder of the confiscation risk, I personally view it as bullish for gold and even more bullish for the Swiss vaults.

Wed, 08/17/2011 - 15:36 | 1570013 DosZap
DosZap's picture

  "even more bullish for the Swiss vaults."


Not for Amercans...................................hell they are having no luck keeping Checking Accts there, even ExPats.

Americans/ExPat Americans (Need not Apply).

Not just in SwitZErland,but globally in any nation that the IRS has any say in.


Wed, 08/17/2011 - 15:29 | 1569972 Threeggg
Threeggg's picture

Some people didn't read the "whole" article ?

Net, net: millions in ounces of potential gold supply are about to be taken out of future circulation, courtesy of the uber-modern Venezuelan extraction and mining infrastructure. Which is why if gold does dip on expectations of Venezuelan dumping, don't expect said dip to last more than a few milliseconds.

Wed, 08/17/2011 - 15:47 | 1570098 Whalley World
Whalley World's picture

As I read it, Hugo will use production to increase international reserves.  Is gold not considered an international reserve.

He is too smart to turn his gold into paper in my opinion.  Unless it's Yuan or Rouble.  Just my take on this breaking story.

Wed, 08/17/2011 - 15:55 | 1570143 Threeggg
Threeggg's picture

Please remember who wrote these pieces, WSJ and Bloomberg.

Oh Please !

Wed, 08/17/2011 - 21:32 | 1571133 KowPie
KowPie's picture

I agree on his possibly converting into yuan or rouble, at least a portion. He has the trifecta between a cemented alliance, nationalization of the mines and oil holdings. The only fly in the ointment is his possibly getting fuked on the repatriation of metal. uncle sambo ain't gonna like that one.

Wed, 08/17/2011 - 15:37 | 1570029 oldmanagain
oldmanagain's picture

I agree this is bullish.  Most countries wll keep the gold, increase reserves, then use it to lever paper issuance.


Wed, 08/17/2011 - 15:18 | 1569929 buzzsaw99
buzzsaw99's picture

Hey Hugo, There is a lot more money to be made in the illicit drug trade.

Wed, 08/17/2011 - 15:32 | 1569987 Pladizow
Wed, 08/17/2011 - 16:27 | 1570308 pazmaker
pazmaker's picture

Buzzsaw, he's got that market cornered as well.

Wed, 08/17/2011 - 15:19 | 1569932 PaperBear
PaperBear's picture

Good luck finding competent people to do the work of the executives and management of your gold mines, Mr President.

Wed, 08/17/2011 - 15:35 | 1569999 Pladizow
Pladizow's picture

All the American/Canadian dollar whores will stay on board for even the slightest pay raise - if not replacements will easily be found.

Now that Chavez will own all the gold, along with the oil, what will he care about a fiat pay raise?!?!

Wed, 08/17/2011 - 22:00 | 1571215 KowPie
KowPie's picture

"Good luck finding competent people to do the work of the executives and management of your gold mines, Mr President."

Who needs competent management when you have an inexhaustible supply of expendable drones to dig with?

Wed, 08/17/2011 - 15:20 | 1569939 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Silver too?

Wed, 08/17/2011 - 15:37 | 1570027 Sudden Debt
Sudden Debt's picture

65% of all silver in the world comes from Zaire.

The Chinese have got their hands on it so their industrial needs are covered like FOREVER!


Zaire does have a Tyran to :)

A greedy one for that :)

So if Silver goes up even more, Zaire... no the President could claim all the silvermines for himself and become the richest man on earth.

And if the President doesn't do it... the rebels will.


Wed, 08/17/2011 - 15:56 | 1570149 DosZap
DosZap's picture

SD@ 15:37,

Never happen, wanna see WAR # 7 start?.

We are "An Equal Opportunity Bombing Entity."

Wed, 08/17/2011 - 16:02 | 1570169 Sudden Debt
Sudden Debt's picture

ehe... another Jungle war... where will you guys get the soldiers from? enlist all the 12 year olds to?


Wed, 08/17/2011 - 16:23 | 1570280 Ahmeexnal
Ahmeexnal's picture

65% of all silver in the world comes from Zaire


Really? I do not remember the complete list of silver producers. But I do remember the top three: MEXICO, PERU, CHINA.

So...if Zaire produces 65%, and in the hypothetical case Zaire is the worlds fourth silver producer (I'd have to look up the data), then...MEXICO, PERU and CHINA must produce at least...66% of "all the silver in the world" each.

Damn, just those four countries produce 263% of all the silver in the world.  I guess that's why silver is so cheap! You can have OVER UNITY production!!!!!  Better than FREE ENERGY!!!

You'd better lay off the mayo on them vlaamse frittes.  Or the Gouden Carolus Tripel.

Wed, 08/17/2011 - 16:26 | 1570301 A Nanny Moose
A Nanny Moose's picture

Somebody has to fly the drones. They are the only ones with the skills. Perhaps if we put them on the job we migh stop bombing weddings

Wed, 08/17/2011 - 17:00 | 1570483 Mysteron
Mysteron's picture

"65% of all silver in the world comes from Zaire."


Interesting, but SD, what is your source for that statistic? I have never seen that mentioned before.  E.g. Zaire not even in this  list of the top 20 countries by production Thanks

Wed, 08/17/2011 - 18:01 | 1570698 vocational tainee
vocational tainee's picture

He just got drunk early....

Thu, 08/18/2011 - 00:10 | 1571546 Hamsterfist
Hamsterfist's picture

83% of the time that is wrong all the time.

Wed, 08/17/2011 - 15:21 | 1569941 FranSix
FranSix's picture

Venezuela touted as having world's largest oil reserve:

Financial Post

Wed, 08/17/2011 - 15:21 | 1569944 New American Re...
New American Revolution's picture

A few milliseconds might not be possible, this market looks like it is straining at the bit and I'd say it's about to take off,... in my humble opinion of which I've been told I have none.

Wed, 08/17/2011 - 15:32 | 1569985 Threeggg
Threeggg's picture

I agree, based on the fact metals options expire this Friday I think they are trying to hold the line ! Can't have those terrorist "in the money" who knows they might buy guns and IED's with them !

It's a WAR !

Wed, 08/17/2011 - 15:55 | 1570142 Smiddywesson
Smiddywesson's picture

I agree, the gold market looks like the polar opposite of the stock market.  Gold is straining to rise, and stocks are straining to fall.  The one important difference is the central banks can keep stocks from falling, but they can't stop gold from rising.  Why????

Because they are the demand.  They are buying.

Chavez is not gong to dump his gold.  Maybe two years ago, but the gold game is much too obvious now.  

As I have said before, repatriation of gold reserves is a canary in the coal mine that the new system is nearing.

Wed, 08/17/2011 - 16:15 | 1570245 hunglow
hunglow's picture

I think I smell something too!

Wed, 08/17/2011 - 15:22 | 1569946 JW n FL
JW n FL's picture

Russia challenges US dominance with Venezuela naval wargames ...

Nov 24, 2008 – A Russian navy task force will sail into Venezuela tomorrow as President Medvedev undertakes a tour of Latin America to challenge the ...

  • Russia, Venezuela to hold naval war games - CachedSimilar

    Sep 11, 2008 – Russia and Venezuela will hold joint naval war games in what could be a Russian response to a NATO naval build-up in the Black Sea. ...

  • Russian navy conducts war games in Caribbean - Telegraph - Add to iGoogle

    Nov 25, 2008 – Russian warships have arrived in the Caribbean for war games with Venezuela in their first military exercise in the region since the end of ...

  • Russian Navy Coming to Caribbean for War Games With Venezuela ... - Cached 

    Sep 10, 2008 – Russian warships are set to join Venezuela for war game exercises at the end of the year. (Reuters/Stringer). Russian Navy Coming to ...

  • Wed, 08/17/2011 - 16:05 | 1570183 Miss Expectations
    Miss Expectations's picture

    Then there's this from 2009:

    "The United States is massively building up its potential for nuclear and non-nuclear strikes in Latin America and the Caribbean by acquiring unprecedented freedom of action in seven new military, naval and air bases in Colombia."

    Wed, 08/17/2011 - 17:50 | 1570661 JW n FL
    JW n FL's picture

    Columbia from the 1980's until now is night and day.. our Money built that Country up.. what is nice as much as the new is there the old towns are still there right next to the new build stuff. Great Country, for Americans.

    Wed, 08/17/2011 - 17:54 | 1570673 JW n FL
    JW n FL's picture

    "Old Town Cartagena" Jeffsadventures's photos around Cartagena, Colombia (cartagena old town)

    verses this...


    Wed, 08/17/2011 - 17:55 | 1570675 JW n FL
    JW n FL's picture

    think San Juan PR but the building are finished in a timely fashion.. LOL!

    Wed, 08/17/2011 - 20:43 | 1571028 Bananamerican
    Bananamerican's picture

    "Great country, for americans"

    The country has received military aid worth $4.6bn (£2.8bn) from the US since 2000, despite its poor human rights record. Colombian forces regularly kill the country's indigenous people and other civilians, and last year raided the territory of its southern neighbour, Ecuador, causing at least 17 deaths.

    ...The Colombian forces, for many years notorious for atrocities inflicted on civilians, have cheekily suggested that with US help they could get into the lucrative business of "instructing" other armies about human rights. Civil strife in Colombia meant some 380,000 Colombians were forced from their homes last year, bringing the number of displaced since 1985 to 4.6 million, one in ten of the population. This little-known statistic indicates a much worse situation than the much-publicised one in Islamist-ruled Sudan where 2.7 million have fled from their homes.

    Amnesty International said: "The Colombian government must urgently bring human rights violators to justice, to break the links between the armed forces and illegal paramilitary groups, and dismantle paramilitary organisations in line with repeated UN recommendations."

    Palanquero, which adjoins the town of Puerto Salgar on the broad Magdalena river north-west of the capital, Bogota, is one of the seven bases that the government of President Alvaro Uribe gave to Washington last month despite howls from many Colombians. Its hangars can take 100 aircraft and there is accommodation for 2,000 personnel.

    Wed, 08/17/2011 - 15:22 | 1569947 greased up deaf guy
    greased up deaf guy's picture

    so which publicly traded miners will be affected by this? or did they all know better to invest in properties there? thanks in advance...

    Wed, 08/17/2011 - 15:23 | 1569948 nah
    nah's picture

    communist bitchez

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