This story is very interesting. Huge Chavez nationalized Venezuela's gold industry, seizing control from the corporations who own and operated the mines.
Hugo Chavez also demanded physical delivery, to Venezuela, of 99 tons of gold on deposit at the Bank of England. Also, the price of gold rose sharply yesterday (Thursday).
The conspiracy theory is that the Bank of England doesn't have the 99 tons of gold for physical delivery. The gold was lent to short sellers, and now they must scramble to get some gold.
Even if you buy gold in an allocated account, that doesn't mean the bank has the gold they promised! There are many stories of people with "allocated" accounts with delivery option, but the bank stonewalls when the customer demands delivery! Obviously, many "allocated warehouse accounts" are really frauds. For this reason, actual physical gold is preferable to all forms of paper gold.
Allegedly, this physical delivery demand caused the price of gold to rise. The banksters are now scrambling to get 99 tons of gold for physical delivery. If the banksters default and fail to deliver, then many other people will start demanding physical delivery.
The State financial system has an annoying habit of freezing the accounts of out-of-favor dictators. Therefore, Hugo Chavez is making a wise move, demanding physical delivery of his gold.
That's the classic fractional reserve banking scam. It could be a classic bank run. Many "allocated gold accounts" are frauds and really fractional reserve banking. If there's one big redemption, then the scam is exposed, and everyone demands physical delivery.
That is a very interesting conspiracy theory. Hugo Chavez demanded physical delivery of 99 tons of Venezuela's gold. The price of gold is increasing, as the banksters scramble for physical to deliver. If there's a delivery default, then the whole paper gold market could unravel, as everyone demands physical delivery.
Friday, August 19, 2011
Venezuela, Chavez, and Gold
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1 comment:
steamroller says:
This is what Elitist tyrants do. Much like FDR who decided that the citizens didn't need their own gold as much as government did - another blatent theft. Immedialtely following the confiscation, the gold was then "revalued" in favor of the Gov't. WHAT? Imagine that - - The one ounce of gold which since 1792 was worth $20. or 20 silver dollars at a buck each until the government seized it ---- magically became $35. per ounce when traded for paper that the Treasury promised was "backed by the full faith and credit of the United States".
Such a deal! We may soon see a repeat theft since there was little resistance from the victims of the first one.
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