Venezuela Repatriates ‘People’s Gold’ Due to Gold’s ‘Historic’, ‘Symbolic’ & ‘Financial’ Value

Tyler Durden's picture

From GoldCore

Venezuela Repatriates ‘People’s Gold’ Due to Gold’s ‘Historic’, ‘Symbolic’ & ‘Financial’ Value

Gold is trading at USD 1,712.30, EUR 1,280.80, GBP 1,100.00, CHF 1,574.70 and JPY 133,080 per ounce. 

Gold’s London AM fix this morning was USD 1,714.00, GBP 1,100.41, and EUR 1,280.06 per ounce.

Friday's AM fix was USD 1,676.00, GBP 1,084.02, and EUR 1,263.86 per ounce.

Cross Currency Rates

Gold is higher in most currencies today. Gold is higher due to the dollar coming under pressure and oil prices (WTI) have surged over 3%. 

Stock markets are also higher on fresh hopes Europe will unveil yet another set of measures to tackle the deepening contagion in the Eurozone.  

Monetary and systemic risks remain and should see gold well supported at the $1,700/oz level. Indeed, gold could have bottomed on options expiry last week – as is often the case.

Western physical buyers continue to accumulate due to currency concerns. While, demand is robust, there is no panic buying or mass “flocking to gold”.

Physical buyers of gold in India, the world's biggest consumer of bullion, remain on the sidelines even though traders offered discounts of up to $5 per ounce to global prices, according to Reuters.

Chinese New Year buying should commence soon which will be supportive of prices and make up for the expected decline in Indian demand.

The currency war meme continues as seen in wild scenes of celebration in Caracas on Friday when Venezuelan citizens partied in the streets as their gold reserves were repatriated.

Reuters reports the first shipment of gold bars arrived home in Venezuela on Friday “amid wild celebrations.”

Excited crowds lined the roadside waving big Venezuelan flags and chanting "It's returned! It's returned!" as a convoy of soldiers and armored cars carried the gold ingots from Maiquetia airport to the central bank in Caracas.

The President of the central bank, Nelson Merentes traveled into the city at the head of the convoy. He did not say how much gold bullion was brought back in Friday's shipment but said the bullion came from several European countries.

"Our gold is being stored in the vaults," Merentes told the cheering crowds, sporting a baseball cap that read "The Central Bank of Venezuela with the People." 

"It has historic value. It has symbolic value. And it has financial value," bank chief Merentes said about the first shipment.

"Each box of gold weighs 500 kilograms and is worth about $30 million,” Merentes said before cheering crowds. “We’ll bring the rest back little by little.”

Merentes is in favor of the move and said, "The country's finances will be backed by autonomous wealth, so we are not subject to pressure from anyone," UPI reported.

“This guarantees that if there are financial problems in the international markets our gold will be safe here at home,” Merentes said.

Drums and sirens sounded out across the square as many in the crowd sang "Forward comandante!" in support of the president. Some waved homemade signs that said: "The gold has returned thanks to Chavez!" and "Long live our sovereignty!"

Chavez addressed the nation on local television last week with the Council of Ministers, the Executive Cabinet and representatives of the Venezuelan Central Bank, including bank chief, Nelson Merentes.

Speaking from the Miraflores presidential palace Chavez said the move was giving back the country’s, “Body and soul,” and went on to say the return of the gold gave Venezuela more independence from what he described as imperialist powers. While brandishing a copy of the constitution he explained that the Central Bank would carry out the repatriation.

Chavez said the central bank would now be independent of foreign powers and subject only to the national constitution. 

Chavez announced the repatriation in August as a "sovereign" step that would help protect Venezuela's foreign reserves from economic turmoil in the United States and Europe. Most of Venezuela's gold held abroad is in London.

"They say Chavez is going to take the gold to Miraflores (presidential palace) and is going to give it to Cuba as a gift," the president chuckled on Friday, mocking political rivals who accuse him of planning to sell the ingots to fill his electoral war chest ahead of next year's election.

"The gold is returning to where it was always meant to be: The vaults of the Central Bank of Venezuela."

“It’s our gold. It’s the economic reserve for our kids. It’s growing and its going to keep growing, both gold and economic reserves,” said Chavez. “Venezuela is going to become an economic power, not for the bourgeois or capitalism, but for the Venezuelan people.”

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.

Merentes said in August that Venezuela will look to deposit some of its $6.3 billion of cash reserves in emerging-market financial institutions in Russia, China and Brazil.

Like most of those gathered outside the bank, 62-year-old university professor Jose Escalona wholeheartedly agreed.

"There was no reason for it to be in England," he said. "This gold belongs to all Venezuelans," he told Reuters.

A senior government source involved in transporting the bars, which amount to 90% of Venezuela's gold held abroad, has told Reuters they will be shipped in several cargo flights that will be completed before the end of the year.

The total cost of the operation will be no more than $9 million, the source said, without elaborating.

Chavez often accuses previous presidents of selling off Venezuelans' national assets, including by storing most of the country's gold reserves with Western banks in the mid-1980s.

Chavez is worried about Venezuela's foreign reserves being frozen by sanctions.

By repatriating the bullion, he also reduces the risk of any seizure of assets related to arbitration cases, including those linked to the nationalization of multibillion-dollar oil projects run by US multinationals.

Critics have suggested that Mr Chavez is acting out of fears Venezuela's overseas assets could one day be frozen by sanctions, as happened to his friend and ally, the late Libyan leader Col Muammar Gaddafi.

Chavez, the Venezuelan central bank and some of its people clearly understand the value of gold. 

This is in marked contrast to the majority of people in the western world who have forgotten gold’s ‘historic’, ‘symbolic’ & ‘financial’ value.

With increasing systemic and monetary risk, gold is reasserting itself as money and as an important safe haven monetary asset.

Silver is trading at $32.03/oz, €23.98/oz and £20.58/oz 

Platinum is trading at $1,551.63/oz, palladium at $590.50/oz and rhodium at $1,575/oz. 

Gold jumps 1 percent on rising euro, Italy aid hopes

 Australian Gold Output Declines as Miners Use Lower-Grade Ore

Euro area crisis threatens EU sovereign ratings: Moody's

(Euro News)
Video: Gold Bullion Returns to Venezuela‎ 

Today's Currency War May be Tomorrow's Global Crisis: Book

Bifurcated Euro Begins As AAA-Only 'Elite'-Bond Issuance Considered

Gold Follows Stocks Vertically

(Wall Street Journal)
Inner Workings of Market Readied for Euro Breakup

Insight - Euro zone staring into the abyss, waiting for ECB

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AngryGerman's picture

gold safe? so the imf did not pirate it? thought they would use their black pearl...

CPL's picture

Gold and Oil.


Anyone feeling the invasion plans already being drawn up?

Oh regional Indian's picture

Anyone notice this before?







hooray for the little guy. Now when will he be disappeared?



i-dog's picture

It's actually  Gold + Oil + Drugs = GOD

Chavez may be about to receive some "humanitarian assistance". :)


Tis the season......

Although maybe the shipment of tungsten bars have arrived so no assistance needed. 

gmrpeabody's picture

Sounds like a Woody Allen movie in the making.

Taint Boil's picture

I taint got Bullion or Oil = Taint Boil, Coincidence?

Carlyle Groupie's picture

Venezuela's people are heavily armed.

"Venezuela's main synagogue desecrated by armed people, slogans such as ‘Jews get out’"

Just sickening.

Belarusian Bull's picture

I bet jews are already used to it.

Carlyle Groupie's picture

Nah brah. Glenn say "it will only get worse, mark my words".

We must fight this at all costs. Prepare for war-on-Venezuela. "Stomp out the hate in 2012". Restore non-hate like it was back in the..... Adam&Eve days (i think, maybe before).

Ahmeexnal's picture

Venezuela pogroms.
Yep, when pressure builds up, tyrants let the mobs steal from those who save.
When TSHTF, the tyrants themselves will steal from those who save.

agNau's picture

Actually this will be a good temporary storage. My recommendation is however to bury it in several places in the Venezualan backyard.

bernorange's picture

First one out of the Ponzi wins, right?

Ag Tex's picture

Who will be left holding the party bag?  The Venezuelans ought test drill a few bars before celebrating.

traknologist's picture

They better make sure it's real!

Eally Ucked's picture

And probably they're so stupid that they accepted any shit that looks like gold without checking it!

infotechsailor's picture

Adelante, Comandante.  Yup, first ones to take physical delivery will be better off for it. 

Carlyle Groupie's picture

Hugo is looking regal, fit, and ready to rule the world.

Ahmeexnal's picture

Not with all those "fake" ailments he's supposed to have.

TuesdayBen's picture

I am confident it will be accepted as ransom to secure the release of kidnapped MLB sluggers.

Dexter Morgan's picture

I thought:

A--Gold was in a bubble.

B--Gold has no value.

C--Both of the above.


midtowng's picture

d) you can't eat it.

That's the way all currency is measured - is it edible?

agNau's picture

From what I see so far, there will someday be people that will eat fiat, and maybe grass, as both will have the same value. That will be monetarily, and nutritionally.
History not only rhymes, but it leaves that same taste in your mouth.

GMadScientist's picture

Examine the contrapositive for a sec: are you claiming Hugo Chavez, renowned socialist nincompoop,
is a better investor than most capitalist pigs?

Temporalist's picture

He didn't make any investment he took possession of the investment to get it out of counterparty hands.

If I owned something I wouldn't leave it with a bunch of other criminals either.

midtowng's picture

Did they make Chavez agree to honor the hundreds of billion of derivative contracts associated with the gold as well?

lolmao500's picture

Who cares about Venezuela? WW3 is at our doorstep... Russia clearly warning NATO... back the fuck off or we nuke your ass!

Russia to send warships to Syria in 2012: report

Russia will send a flotilla of warships led by its only aircraft carrier to its naval base in Syria for a port call next year amid tensions with the West over the Syrian crisis, a report said Monday.

The ships, headed by the Admiral Kuznetsov aircraft carrier, will dock at the little-utilised Russian base in the Syrian port of Tartus in spring 2012, the Izvestia daily said, quoting the Russian navy.

The Tartus base, a strategic asset for Moscow dating back to Soviet times, is rarely used by Russian vessels and currently no Russian ship is based there although civilian and military personnel are present.

trav7777's picture

that's why the west will strike now.  There won't be a port by next year.

The Kuznetzov would get sunk quickly in a contest between CBGs.  Its construction means that the Su33s that fly off its decks cannot carry heavy strike packages.

Nobody is going to nuke anyone

i-dog's picture

But ... but ... it will be carrying 12 aircraft! That'll scare off any American CBG. For a start, the 90 aircraft plus choppers on the GHWB wouldn't stand a chance.

This puff-piece is even more laughably just for stirring the drooling rednecks than Medvedev's one a few days ago.

Gave you +1 for "Nobody is going to nuke anyone"

Ahmeexnal's picture

The Kuznetzov will try out it's brand spanking new directed energy weapons on the GHWB.
Watching live ordnance detonate in their cases is a sight to behold.
That's also why firearms will be obsolete.
Directed energy will detonate all your ordnance and leave you looking like a limp bizkit.
Just buy sacks of nickels, nails and other ferromagnetic small projectile like items and build your gauss gun.

Freddie's picture

The Russians have the guts to deal with the Somali pirates.  Americans just put those muslim somalis in the white hut.  Check his tribe - they are more muslim somali than kenyan.

hannah's picture

"Russia will send a flotilla....."


god i love mexican food.


Ahmeexnal's picture

let me guess: you are a blonde chick

monopoly's picture

There is no doubt in my mind that this will be the lead story on all the MSM networks tonight. Maybe, Brian and Diane will even wear a little gold to celebrate the wonders of this nation. 

Nothing but the truth for the masses no matter what the advertisers want.

Paper CRUSHer's picture

Better not celebrate,the stuff's comin' from the BOE vaults!!!!!! ....ya kiddin'.....i suggest a full assay is carried out on every gold bar.

GMadScientist's picture

They're all 99.999% Au....198.

Paul Thomason's picture

That probably puts them next on the list of 'countries to liberate' and leaders to assassinate?

Carlyle Groupie's picture

Within 15 years Oil trade will be settled in gold.

Falcon15's picture

When the USD collapses, it may take 15 years for world economies and countries to normalize, let alone trade any commodities. Gaddafi wanted to return to a gold backed government issued currency, and sell his oil for gold. Look what that got him. We are facing a complete economic collapse of every major economy worldwide. The only question is: when?

It really is a zero sum game. Got preps? Pray for the best, prepare for the worst.

Carlyle Groupie's picture

I'm preped. Underground, lead lined, air filtration, water from a deep aquifer, and my Internets so I can stay in touch with you's.

Smiddywesson's picture

Hey, reverse globalization isn't such a bad thing, especially at the bargain basement price of one or two billion lives.

GMadScientist's picture

How much of it will end up in American vaults as Chavez spends into a blackhole and is forced to liquidate either the gold or his belief system?


vegas's picture

What a bunch of fucking chumps. The only time you will see gold bars is when Hugo and pals leave power and they fly out in a plane. Other than that, you morons in the street got as much chance of seeing that gold as a snowballs chance in hell.

In Ven everything is for the "people". In Amerika it's for the children. Not much difference really.

i-dog's picture


"you morons in the street got as much chance of seeing that gold as a US congressman has of visiting Fort Knox"

There, fixed it for ya.

Yellowhoard's picture

If they'd just leave it in the basement in New York like everyone else, we wouldn't have to invade them later to get it back.