Wednesday, August 17, 2011

Venezuela want to move reserves from "imperialist" vaults

Financial Times blog

has billions of dollars of foreign reserves stashed away in banks under the control of “imperialist” regimes.

Worrying that its foreign assets are in danger of being frozen one day, as has happened to Libya, the government is allegedly planning to shift its international reserves to banks in “friendly” countries – namely China, Russia and Brazil.

Wall Street Journal

Zerohedge commentary on above WSJ article:
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.

Another blog

1 comment:

  1. Let's face it; after seeing the western powers steal Libya's money, Chavez, and other countries around the world, know what time it is (are aware of the situation).