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Chavez To Nationalize Venezuelan Gold Industry

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http://www.reuters.com/article/2011/08/17/us-venezuela-gold-idUSTRE77G53L20110817

Venezuelan President Hugo Chavez said on Wednesday he will nationalize the gold industry, including extraction and processing, and use its output to boost the country's international reserves.

The move follows a dispute between his government and foreign miners who say the rules limiting the amount of gold that can be exported from the South American nation hurt their efforts to secure financing and create jobs.

Toronto-listed Rusoro, owned by Russia's Agapov family, is the only large gold miner operating in Venezuela. It produced 100,000 ounces last year.

The gold industry will be just the latest part of the economy to be put under state control by the socialist leader, who said he would issue the necessary decree in the coming days and called on the military to help control the sector.

A gold backed socialist state?

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A gold backed socialist state?

In theory sounds like a good plan.

In practice Chavez and his pals will all be living in vast palaces in ten years time with huge secret swiss bank accounts.

Nobody else's life will have improved.

Socialism.........The biggest con ever invented.

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In theory sounds like a good plan.

In practice Chavez and his pals will all be living in vast palaces in ten years time with huge secret swiss bank accounts.

Nobody else's life will have improved.

Socialism.........The biggest con ever invented.

No doubt holding bunga bunga parties....

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In theory sounds like a good plan.

In practice Chavez and his pals will all be living in vast palaces in ten years time with huge secret swiss bank accounts.

Nobody else's life will have improved.

Socialism.........The biggest con ever invented.

Chavez will be dead soon. Bad cancer.

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In theory sounds like a good plan.

In practice Chavez and his pals will all be living in vast palaces in ten years time with huge secret swiss bank accounts.

Nobody else's life will have improved.

Socialism.........The biggest con ever invented.

You realise there has never been evidence to suggest he's corrupt? Just the usual US anti-communist clap-trap.

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Could this have an effect on gold prices?

"In addition to the nationalization of his gold insutry, Chavez earlier also announced that he would recover virtually all gold that Venezuela hold abroad, starting with 99 tons of gold at the Bank of England. As the WSJ reported earlier, "The Bank of England recently received a request from the Venezuelan government about transferring the 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter. A spokesman from the Bank of England declined to comment whether Venezuela had any gold on deposit at the bank." That's great, but not really a gamechanger. After all the BOE should have said gold. What could well be a gamechanger is that according to an update from Bloomberg, Venezuela has gold with, you guessed it, JP Morgan, Barclays, and Bank Of Nova Scotia. As most know, JPM is one of the 5 vault banks. The fun begins if Chavez demands physical delivery of more than 10.6 tons of physical because as today's CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Or roughly 10.6 tons. A modest deposit of this size would cause some serious white hair at JPM as the bank scrambles to find the replacement gold, which has already been pledged about 100 times across the various paper markets. Keep an eye on gold in the illiquid after hour market. The overdue scramble for delivery may be about to begin."

http://www.zerohedge.com/news/chavez-pulls-venezuelas-gold-jp-morgan-great-scramble-physical-starting

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You realise there has never been evidence to suggest he's corrupt? Just the usual US anti-communist clap-trap.

agreed, seems an entirely genuine guy to me and up against not just the corrupt USA but the corrupt generals in his own country who have a habit of trying to kill him. Nationalising the oil/gold etc here shouldn't be seen in the simplistic vein of anti-statism in the west but undoing the corrupt privatisation deals between the USA companies primarily and his predecessors back pocket.

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agreed, seems an entirely genuine guy to me and up against not just the corrupt USA but the corrupt generals in his own country who have a habit of trying to kill him. Nationalising the oil/gold etc here shouldn't be seen in the simplistic vein of anti-statism in the west but undoing the corrupt privatisation deals between the USA companies primarily and his predecessors back pocket.

Yep. +1. Some times this sort of nationalization is required to begin to deal with the decades of corruption that have gone before.

Anecdotal I know, but I've met a couple of the elite who have been on the losing end of Chavez's policies. I must say I didn't pity them; nasty, nasty, racist, anti-meritocratic, Latin fascists the pair, whose reptilian nature actually made my skin crawl - both wanted to keep the poor natives in their subservient place. A brief conversation made me lose all sympathy, even though generally I'm none too keen on governments taking people's wealth.

Anyhow, once the polonium has done its work, I'm sure all will return to business as usual.

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Surely if he Nationalises the gold mines and keeps the wealth in Venezuela rather than on the open market. Then recalls $11 billion worth of gold from world wide banks it would have a substantial effect on the amount of gold on the open market and more importantly the price. Seems a no brainer that the price will head skywards.

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You realise there has never been evidence to suggest he's corrupt? Just the usual US anti-communist clap-trap.

I agree with your sentiments regarding the Usual USA Anti Commy claptrap. But there is evidence that he has rigged elections. Having said that, he's nowhere near as corrupt as the United States of America.

Sounds like the sort of thing a jealous banker would say.

.......?.......

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I agree with your sentiments regarding the Usual USA Anti Commy claptrap. But there is evidence that he has rigged elections. Having said that, he's nowhere near as corrupt as the United States of America.

.......?.......

Same thing with Kim of North Korea. Granted he may well be a bit of a nut job but a lot of the things they say about him. Golf hole in ones, inventor of everything is simply untrue. Even S Koreans dismiss this sort of black propaganda.

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They wont give him the Gold...

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Surely if he Nationalises the gold mines and keeps the wealth in Venezuela rather than on the open market. Then recalls $11 billion worth of gold from world wide banks it would have a substantial effect on the amount of gold on the open market and more importantly the price. Seems a no brainer that the price will head skywards.

watch gold rise by x amount, and see the $11bn rise to say $18bn, then dump the lot on the open market. what would that do for the only "safe" way to hold value with the other market sh!tting themselves?

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watch gold rise by x amount, and see the $11bn rise to say $18bn, then dump the lot on the open market. what would that do for the only "safe" way to hold value with the other market sh!tting themselves?

Dumping Gold is all well and good, the problem is what do you exchange it for? Certainly not fiat, that stuff burns!

Cannot see Chavez selling the Gold, best to wait for the optimum moment like Gordon Brown did :lol:

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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