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Hugo Chavez Wants The 211 Tonnes Of Gold Back

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Isn't that a bit like the punter lending the bank gold in exchange for a promissory note and now wants it back only to find out that the same gold is security fifty times over to numerous other punters.

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Does anyone BLAME him?

Especially after yesterday when european governments agreed to hand Libyas "seized" funds over to a charity which had agreed to supply "food" and "medicine" (we all know what that means) to the Libian rebels.

(The rebels and libians backing them are a very small percentage of the population, the food/medicine will be used as a lever to force libians backing Gadaffi (or more noteably the majority of the population who have been sitting on the fence and don't care either way) to back the rebels if they want to eat)

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Isn't that a bit like the punter lending the bank gold in exchange for a promissory note and now wants it back only to find out that the same gold is security fifty times over to numerous other punters.

Were about to find out I fear.

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In other Headlines

'TheFT'

"City Bankers demand 200 tons of marching powder before shipping lead gold to Venezuela"

Reporter (on the ground)

Trippi Daze

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is there enough physical to go around?

I think not.

Unless Venezuela has explicitly rented it out to other people, then there will be actual bars of gold with their name on it so to speak in the BoE vaults. The BoE have a long history of storing assets for people and an equally long history of giving them back when asked.

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Isn't that a bit like the punter lending the bank gold in exchange for a promissory note and now wants it back only to find out that the same gold is security fifty times over to numerous other punters.

No. It's like asking Brinks to store it in one of their warehouses only a hell of a lot more secure. The BoE don't do anything with other people's gold other than store it safely in exchange for an annual fee. They don't lend it to anyone else (unless the actual owner does a direct leasing deal with a 3rd party) and they don't pledge it as security for anything.

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No. It's like asking Brinks to store it in one of their warehouses only a hell of a lot more secure. The BoE don't do anything with other people's gold other than store it safely in exchange for an annual fee. They don't lend it to anyone else (unless the actual owner does a direct leasing deal with a 3rd party) and they don't pledge it as security for anything.

Stop ruining a good HPC thread with facts!

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Its not all going to get there is it ?

there are going to be claims of under purity or missing bars by the time it gets there ...someone is going to skim ...If not Chavez or his flunkies himself ......

I hope we just take it to a UK port and its all there mate ...sign here

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More info on WSJ

http://online.wsj.com/article/SB10001424053111903392904576512961180570694.html

Bit of a leverage problem with the gold and cash held by banks, some fear of what the oil companies will get the west

to do after they lost their sites during the nationalisation and won't paid for it.

China wanting to increase lending but wanting some security that isn't lodged with western governments. Or they are about

to do something that will cause a freeze on assets but China Russia won't be bothered by it.

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Stop ruining a good HPC thread with facts!

Sorry, I generally try to restrain myself but sometimes someone says something so wrong I can't resist correcting it.

Having said that, I think the job of transporting that much gold by sea is going to be utterly fascinating to watch. Half the loonies in the world, along with a fair few West African pirates, must already be cooking up schemes to steal in en-route. Venezuela doesn't have much of Navy to act as escort:

http://en.wikipedia.org/wiki/Bolivarian_Armada_of_Venezuela

Maybe the Russians will help them out?

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Sorry, I generally try to restrain myself but sometimes someone says something so wrong I can't resist correcting it.

Having said that, I think the job of transporting that much gold by sea is going to be utterly fascinating to watch. Half the loonies in the world, along with a fair few West African pirates, must already be cooking up schemes to steal in en-route. Venezuela doesn't have much of Navy to act as escort:

http://en.wikipedia.org/wiki/Bolivarian_Armada_of_Venezuela

Maybe the Russians will help them out?

Don't be silly it won't go by sea, it'll be airlifted. 4-5 C130s should do the trick.

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Don't be silly it won't go by sea, it'll be airlifted. 4-5 C130s should do the trick.

Well, the article had:

What’s more, flying is out of the question because no insurance company would be able to cover a single aircraft carrying a consignment of gold this big, which is worth £7billion. This means that ships will have to be used, which are far more vulnerable.

If you broke it up into, say, 10 million pound chunks, that would be one hell of a lot of flights.

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The question you should be asking is whether he thinks the UK is about to do an Iceland on him.....like this sort of thing....

anyone know of anything really bad he's been doing to upset the US and UK? Selling oil / WMD materials :ph34r: to the Iranians perhaps?

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Well, the article had:

If you broke it up into, say, 10 million pound chunks, that would be one hell of a lot of flights.

Who says they have to use a commercial airline and or cargo company? You can send your own C130 or C5 galaxy or whatever. With insurance if you post a massive bond you can self insure, like the UK police do. Type in any cop car number plate into the MiB database and it comes back uninsured as they self insure using a bond.

Also moving gold around in small amounts is not unknown, you might be surprised to hear that RBS once dealt with large amounts of gold in London. They didn't move it by armoured cars, they used motorcycle dispatch riders. I've spoken to a few of them, a few of them were sorely tempted to head to dover and run away with it as they were carrying those big investment bars 400toz I believe.

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No. It's like asking Brinks to store it in one of their warehouses only a hell of a lot more secure. The BoE don't do anything with other people's gold other than store it safely in exchange for an annual fee. They don't lend it to anyone else (unless the actual owner does a direct leasing deal with a 3rd party) and they don't pledge it as security for anything.

Very convincing and they would say that wouldn't they :lol:

What they don't know won't hurt them eh ;)

I'll bet when asked Ye Olde Goldsmith LOANS-R-US said exactly the same thing.

Having said that I dare say you're right but as an earlier poster said we're about to find out.

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Who says they have to use a commercial airline and or cargo company? You can send your own C130 or C5 galaxy or whatever. With insurance if you post a massive bond you can self insure, like the UK police do. Type in any cop car number plate into the MiB database and it comes back uninsured as they self insure using a bond.

Um, I think you're rather missing the point of self-insurance there. The Police, and many big organisations, do indeed self-insure but, when there's an accident, that means they're paying out of their own pocket. The only reason for doing it that way is that, if you have enough cars, things average out and you save yourself paying the insurance company's profits. If Chavez 'self-insures' his 7B of gold and then the plane goes down, he's still lost the lot.

Also moving gold around in small amounts is not unknown, you might be surprised to hear that RBS once dealt with large amounts of gold in London. They didn't move it by armoured cars, they used motorcycle dispatch riders. I've spoken to a few of them, a few of them were sorely tempted to head to dover and run away with it as they were carrying those big investment bars 400toz I believe.

Sure, if he's going to fly it, that's what he'll have to do. The point being that Venezuela is a long way from London and breaking the horde up into small bits is going to be a logistical nightmare. Imagine 200,000 couriers each taking 1KG each by long haul airplane, there's so much that could go wrong it's not true.

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Very convincing and they would say that wouldn't they :lol:

What they don't know won't hurt them eh ;)

I'll bet when asked Ye Olde Goldsmith LOANS-R-US said exactly the same thing.

Having said that I dare say you're right but as an earlier poster said we're about to find out.

Want to put your money where you mouth is? 1000 GBP says that, if Chavez asks for his gold from the BoE and there hasn't been a specific law passed saying he can't have it, he'll get the whole lot delivered as requested.

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Hugo Chavez orders 100 tonnes of gold bullion stored in Bank of England vault back to Venezuela

My link

There is no way they will give his Gold back :)

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