Venezuela Completes Repatriation Of 160 Tons Of Gold, Gold At 2012 Highs

Tyler Durden's picture


Slowly but surely, ever more physical gold is being removed from circulation in conventional channels. Yesterday, it was Sprott who a week after doing a follow on offering in his PSLV ETF (i.e., adding more physical), reported that he was going to buy an as of yet undisclosed amount of gold for PHYS. This came just as Venezuela completed the rapatriation of its gold from European vaults, which means that it is substantially ahead of all of its other international peers who confidently continue to hold their gold stashed away in vaults situated primarily in London and NY. From Bloomberg: "Venezuela today received the last shipment of gold bars in an operation that repatriated 160 tons of the South American country’s reserves of the metal held abroad, said Nelson Merentes, president of the country’s central bank. Fourteen tons of gold arrived at the Caracas airport today on a flight from Europe, Merentes said. The gold bars were transported in a caravan, broadcast on state television, to vaults at the central bank where street banners proclaimed “Mission Complete.”" So now that the defections in the golden game theory equilibrium have commenced, the question is: who is next?


“In two months, we’ve brought 160 tons of gold valued at around $9 billion back to Venezuela,” Merentes said on state television from the Caracas airport. “Today marks the last day of the mission.”


President Hugo Chavez in August ordered the central bank to repatriate the country’s gold reserves as a safeguard against instability in financial markets. The South American country, which has the 15th-largest holdings in the world, according to the World Gold Council, held 211 tons of its 365 tons of gold reserves in U.S., European and Canadian banks as of August.


Venezuela will leave about 15 percent of its reserves, or around 50 tons, outside of Venezuela for financial transactions, Merentes said today. He said on Jan. 3 that the country would leave 15 tons of gold in banks outside the country.


A central bank report released in August showed that Venezuela held gold reserves with the Bank of England, JPMorgan Chase & Co., Barclays Plc and Standard Chartered Plc among other banks.


“This was the largest type of operation to transport this type of metal in the last fifteen years,” said Merentes. “The repatriation of our gold was an act of financial prudence and sovereignty.”

How peculiar: a central banker really doing the prudent thing and betting on his own hard assets. And in Venezuela of all places.

Gold spikes on this, and other, news to $1745 - fresh 2012 highs, and about $170 below all time highs.

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Tue, 01/31/2012 - 09:35 | 2112312 HD
HD's picture

No worries. It's just an old tradition.

Tue, 01/31/2012 - 10:08 | 2112431 Falcon15
Falcon15's picture

What better symbol for a "barbaric" regime than for them to hold a "barbaric relic"?

Tue, 01/31/2012 - 10:50 | 2112597 Pladizow
Pladizow's picture

Chavez just lost/sacrifised 50 tons!

Tue, 01/31/2012 - 14:10 | 2113390 Think for yourself
Think for yourself's picture

"Unfortunately we lost your 50 tons in a tragic forklift accident..."

Tue, 01/31/2012 - 13:36 | 2113280 Sudden Debt
Sudden Debt's picture

today on a flight from Europe.....


I didn't know the fed had a storage room over here....

Tue, 01/31/2012 - 10:27 | 2112506 midtowng
midtowng's picture

The question is: just because NY banks no long have the gold in their vaults, does that mean they still can't sell it? Over and over again?

After all, not actually having an asset doesn't seem to stop bankers from selling said assets.

Tue, 01/31/2012 - 10:41 | 2112569 cowdiddly
cowdiddly's picture

Thats why it took 6 months for Chavez to get all his gold back. They had to mine it because they dont have any enencumbered gold in their vaults.

Tue, 01/31/2012 - 21:26 | 2114960 New World Chaos
New World Chaos's picture

They mined most of it from Gaddafi's asshole.  He had 144 tons; Chavez just got 160 tons. 

Remember how the action against Libya started shortly after Chavez demanded his gold back?  But the main reason the Illuminati sodomized Gaddafi and tortured him to death is because he dared to resurrect the gold Islamic dinar.  Gaddafi, martyr for humanity.  Who would have thunk it?

BTW, I sure hope Chavez and Putin join up to re-enact the "Who run Bartertown?" scene when we attack Iran.  Oil to $250.  That will help bleed out more gold...

Tue, 01/31/2012 - 11:57 | 2112850 Muddy1
Muddy1's picture

“Mission Complete”, more truthful than, "Mission Accomplished".  Kudos to Chavez.

Maybe we could hire the Venezuelan authorities to commence with the audit of the gold (NOT) in Ft. Knox?

Just saying.

Tue, 01/31/2012 - 09:38 | 2112315 krispkritter
krispkritter's picture

Looks like it's time to invade Venezuela...Yo Venny! C'mere, we gots to talk...(and the whole country ends up in the trunk of a car in Jersey)

Tue, 01/31/2012 - 09:41 | 2112336 Ghordius
Ghordius's picture

when they accept only gold for oil?

Tue, 01/31/2012 - 09:53 | 2112372 Internet Tough Guy
Internet Tough Guy's picture

They can always accept euros for oil, which are convertible to gold.

Tue, 01/31/2012 - 10:22 | 2112489 tmosley
tmosley's picture

Stop lying.  Euros are no more convertable than any other fiat currency and you fucking know it.

Tue, 01/31/2012 - 11:02 | 2112638 Internet Tough Guy
Internet Tough Guy's picture

You are a fool, and completely wrong. Check your facts, silverbug.

Tue, 01/31/2012 - 11:36 | 2112764 fredquimby
fredquimby's picture

Initial Euro float was 30% gold and 70% currency

Tue, 01/31/2012 - 11:47 | 2112806 Internet Tough Guy
Internet Tough Guy's picture

Yes, and? How have the percentages changed since? Has the ECB gold holdings changed?

Tue, 01/31/2012 - 09:59 | 2112391 mattu13048
mattu13048's picture

Rumor has it that Hugo Chaves' people trade at this brokerage house:

Tue, 01/31/2012 - 10:17 | 2112471 SWRichmond
SWRichmond's picture

You beat me to it.  Libya was a warning.  Don't we have troops in Columbia?  Border trouble, bitches!

Tue, 01/31/2012 - 10:24 | 2112496 Manthong
Manthong's picture

160 tons of gold wouldn't drop the waterline of an aircraft carrier in any measurable way.

Tue, 01/31/2012 - 09:36 | 2112316 Turd Ferguson
Turd Ferguson's picture

El Commandante, bitchez!

Tue, 01/31/2012 - 09:36 | 2112317 GeneMarchbanks
GeneMarchbanks's picture

Who's next?

Tue, 01/31/2012 - 09:40 | 2112327 Ghordius
Ghordius's picture

Who dares?

Tue, 01/31/2012 - 09:43 | 2112342 GeneMarchbanks
GeneMarchbanks's picture

Nobody within the Empire that's for sure.

Tue, 01/31/2012 - 09:47 | 2112351 Ghordius
Ghordius's picture

+100 eh, another definition for the Phantom Empire

(phantom because it's invisible to many)

1971 the "surrender monkeys" did dare, though - the establishment still hates them for it...

Tue, 01/31/2012 - 09:53 | 2112369 GeneMarchbanks
GeneMarchbanks's picture

Testicles. Reach down find a pair. I'm talking to you Merkel.

All my wildest hallucinations aside, I do believe when you have a dishonest monetary system, only a more honest one can be adopted from here but I'm known to be wrong...

Tue, 01/31/2012 - 09:45 | 2112347 francis_sawyer
francis_sawyer's picture


This is a good place to put the "but gold isn't backed by anything" video that you linked in the other thread... lol

Tue, 01/31/2012 - 09:56 | 2112385 GeneMarchbanks
GeneMarchbanks's picture


If only Chavez understood that fine reporter from Canada.

Tue, 01/31/2012 - 10:14 | 2112453 francis_sawyer
francis_sawyer's picture

He'd have to look down to see her... My guess is that she spends a lot of time on her knees...

Tue, 01/31/2012 - 10:16 | 2112465 a growing concern
a growing concern's picture

Well, clearly when SHTF, FRNs will be incredibly valuable as toilet paper, whereas gold isn't backed by anything and will only be a worthless trinket.  Or, you could always melt it down to make bullets to fend off those roaming hoards of zombies.

Tue, 01/31/2012 - 11:42 | 2112783 fredquimby
fredquimby's picture

And then you can be just like the Lone Ranger!!!!! I had forgotten about him having silver bullets!!

Silver bullets would rock.

Gonna get me some for my 357 hehe

Tue, 01/31/2012 - 12:32 | 2113005 graymnzrc
graymnzrc's picture

I just thought his horse was named 'Silver'.../shrug

Tue, 01/31/2012 - 09:49 | 2112360 LawsofPhysics
LawsofPhysics's picture

Me, I try to repatriate as much as I can every day.

Tue, 01/31/2012 - 09:39 | 2112324 Long-John-Silver
Long-John-Silver's picture

How can anyone become so barbaric they actually demand their physical Gold? It's SHOCKING! /SARC

Tue, 01/31/2012 - 09:40 | 2112326 Quintus
Quintus's picture

Venezuela had 211 tons of gold held at overseas locations when the original repatriation order was made.

Where, I wonder, are the other 51 tons that are still overseas, and why are they still there?  Seems odd to do half the job.

Tue, 01/31/2012 - 09:43 | 2112341 Ghordius
Ghordius's picture

I understand it's Switzerland and Hong Kong

El Presidente's stash?

Tue, 01/31/2012 - 09:55 | 2112378 Internet Tough Guy
Internet Tough Guy's picture

Outside the fractional reserve clutches of LBMA is good enough.

Tue, 01/31/2012 - 10:05 | 2112421 Falcon15
Falcon15's picture

Venezuela (Chavez) decided to keep 51 tons of gold overseas for "financial transactions". It is in the Bloomburg article. He is hedging his bets a little. Very little in the grand scheme of things. Venezuela has a wealth of oil. Oil for gold bitchez!

Tue, 01/31/2012 - 10:08 | 2112430 fuu
fuu's picture

FTFA: "Venezuela will leave about 15 percent of its reserves, or around 50 tons, outside of Venezuela for financial transactions, Merentes said today. He said on Jan. 3 that the country would leave 15 tons of gold in banks outside the country."

Tue, 01/31/2012 - 11:44 | 2112786 fredquimby
fredquimby's picture

crap comment deleted by author


Tue, 01/31/2012 - 09:40 | 2112329 cossack55
cossack55's picture

Mission Complete.

Was Hugo wearing a flight jacket and standing on a carrier mock-up?

Funny. They get gold and all the US got was $1 trillion more debt and lots of full body bags. Hmmmm?

Ron Paul anyone?

Tue, 01/31/2012 - 09:53 | 2112371 LawsofPhysics
LawsofPhysics's picture

That needs to go on a T-shirt.

Tue, 01/31/2012 - 10:46 | 2112585 ElvisDog
ElvisDog's picture

Hugo may be a raving lunatic, but he's not a moron all the time. Successfully getting his gold back was a good business decision. Note to Hugo, do not start a nuclear energy program in Venezuela....

Tue, 01/31/2012 - 15:11 | 2113612 falun bong
falun bong's picture

Hugo and Kyle Bass in the same club...strange times

Tue, 01/31/2012 - 09:40 | 2112330 Lazarus Long
Lazarus Long's picture

why is howard dean on cnbc?


Tue, 01/31/2012 - 09:49 | 2112361 Vincent Vega
Vincent Vega's picture

Why would anyone watch cnbc?

Tue, 01/31/2012 - 09:55 | 2112380 HD
HD's picture

There are a lot of bright colors and shiny things...

Tue, 01/31/2012 - 21:56 | 2115155 laosuwan
laosuwan's picture

dont forget the exciting whooshing sounds as charts fly around on the screen.

Tue, 01/31/2012 - 10:02 | 2112409 living on the edge
living on the edge's picture


Now that's a barbarous relic...


Tue, 01/31/2012 - 09:42 | 2112337 Stuck on Zero
Stuck on Zero's picture

At least the Venezuelans know where their gold is.  Do you Americans know where your gold is?

Tue, 01/31/2012 - 09:53 | 2112374 tarsubil
tarsubil's picture

I know where my gold is. Don't know where America's gold is though and that is what is really scary.

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