Goldbuggered

Remember the big show the government put on to bring home the nation's gold reserves? Yup, they've started selling those now.

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Let’s face it, the moment we saw Chávez frolicking around the National Assembly fondling his gold bars, we knew this day would come:

In a sign of how Venezuela is growing increasingly desperate to acquire hard currency, a report released this week showed the country has been stepping up its sales of gold.

The value of the central bank’s bullion holdings fell 28 percent at the end of May from a year earlier, while the spot price for the metal declined just 12 percent. The figures, while reflecting transactions that took place five months ago, underscore the efforts the government is taking to raise the cash to repay creditors and fund imports amid a punishing recession, inflation exceeding 100 percent and a collapse in the price of its main export, oil.

Bloomberg has the whole gory story.

CNN has some added detail:

14 COMMENTS

  1. I am willing to stand in line at Pudreval to get me some gold at “just prices”. Revolutionary Bolivarian Venezuela would never require entrepreneurs to produce and distribute THEIR products at below market price, then turn around and sell ITS gold at rates determined by that Zionist gold cabal led by Prof. Haussmann. That would be contradictory.

    Gold should cost the same as the petroleum you buy at a Caracas gas station.

    • Lulz. Every household should have part of the gold, it is fair and just. It nothing else it will keep the Jooooooooooo paws off it, you know how they are about gold, they!re always thinking about it you know. Over educated, over worked gold stealers.

  2. Reminded me of this:

    “The wealth and capital does not vanish in 24 hours. The country would shift from capital accumulation to capital consumption and it might take years or even decades to drain the coffers of previous accumulated wealth. In the meantime, the government has the resources to play the game of Bolivarian (i.e., Venezuelan) populist socialism and enjoy the wealth, highways, electrical infrastructure, and communication networks that were the result of the more free-market institutional realities of the past.

    Eventually, though, highways start to deteriorate from the lack of maintenance (or trains crash in the station killing dozens of passengers), the energy sector starts to waver, energy imports become unavoidable, and the communication network becomes obsolete. In other words, economic populism is financed with resources accumulated by non-populist institutions.”

    https://mises.org/library/economies-are-not-destroyed-day

    • Excellent quote!

      The rich but useless playboy can live well for some years by squandering the wealth he inherited from his parents who spent decades working hard to save and accumulate it. But, eventually, the fortune is spent, and all of the fair-weather friends who leached off of him in the good times suddenly have somewhere better to be.

  3. Understand that at least a large chunk of the gold reserves have already been used as a kind of collateral to obtain short term loans from certain international financial companies, thus while they appear as still in the coffers of the BCV actually they are encumbered to other parties and cant be sold !!

    Perhaps part of the fall in gold reserves is just a reflection on the fluctuating prices of gold and part to it having been sold.!! Dont know in what propportion !!

  4. Que chevere ‘ta la rebolusion..

    Maldonado pura medalla de oro en las Folmula 1 y la en la ONU. Gabrielita Chavez, con mas real que Mendoza pero en Andorra y sin harina pan. Su perrito Rebolusionario ‘ta mas lindo que el de Paris Hilton.

    http://noticiasvzla.com/ser-rico-es-malo-maria-gabriela-chavez-representa-el-lugar-numero-1-en-forbes-por-sus-4-197-000-000-millones-de-dolares/

    10 Millones de compatriotas super educados: a votal el 6 de diciembre por Comandante Pajarito. 2 pollos por voto y la promesa de una vida mas boliburguesa que la del Sifrino Pelucon Mayor: Simon Bolivar.

  5. He said liquid assets will fall to about $8 billion by year end. The country and its state oil company have $12 billion in bond payments coming due next year.

    Ergo whoever takes over power (if all goes well in December, con Dios) will quickly find themselves down 4 billion. And what do you think the changes are that even one ingot will be left in the gold reserves if Maduro is voted out? Valle, you can color oro GONE.

    JL

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