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As a Venezuelan, this is terrible news. Forget economic consequences for a minute. The corruption levels in Venezuela are incredibly high. Is widely known that

As a Venezuelan, this is terrible news. Forget economic consequences for a minute. The corruption levels in Venezuela are incredibly high. Is widely known that the Chavez government has been one of the most corrupt government in Venezuela history. What do you think is going to happen to this gold when it gets to Venezuela? (If it ever gets there) I mean, I don't know the dynamics of this, but which authority is going to weigh the incoming gold? Who are we supposed to trust when every institution in the country is in Chavez hands? They basically say what they are told. Also, our Central Bank does not have the physical capacity to store that much gold. Chavez already offered the basement of the Presidential Palace :S (which I have been to and is as a regular basement can be). What about the cost of moving that quantity of gold? They are already talking about 40 trips. Yeah, that's going to cost, 400 million according to the article. Money that could be very well spent in say, hospitals: http://www.noticias24.com/actualidad/noticia/302153/en-fotos-asi-se-encuentra-la-infraestructura-del-hospital-vargas/ http://www.noticias24.com/actualidad/noticia/302153/en-fotos... ) As for the cash reserves: they are going to Russian and Chinese banks. Sorry to those that might be offended, but personally I have as much trust in these governments as I have in mine. We have an election in 2012. If Chavez looses (or if he evens runs... he might die from his cancer before that, dunno), that gold is going back. More gold will be lost along the way. What about the cash reserves? The new government will have to deal with Russians and Chinese institutions under a different premise, because the new government will be or will try to be very close with the US. I think we can expect things to get a bit rough and a lot of gold will go unaccounted for. Sad news for Venezuela, once again.

sek 15y ago
Good points. This could be a bad signal, gold is very handy when you need to get out of a country in political change. Didn't had the Wife of the Tunisian Dictator a ton of gold?
- hugh3 15y ago
  In which case surely he'd keep it in Europe? Or is this Venezuela's gold rather than Chavez's personal gold? In any case, I'm sure that Chavez, like most dictators, has a crapload of money carefully squirreled away in foreign countries. Attempting to steal Venezuela's own gold and then sneak out with all he can carry doesn't sound useful.
  - anamax 15y ago
    > In any case, I'm sure that Chavez, like most dictators, has a crapload of money carefully squirreled away in foreign countries. Probably, but where do you think that it came from? > Attempting to steal Venezuela's own gold and then sneak out with all he can carry doesn't sound useful. However, it is useful to steal it and start moving it now. Plus, it's always useful to have some "traveling money" that will work when you're fleeing. You can't afford the time to negotiate good deals.
david927 15y ago
Chavez government has been one of the most corrupt Really? Venezuela should be a much richer country but was controlled by a cabal of wealthy families that siphoned the wealth off. Since Chavez, the poverty rates are down and literacy is way up. The gold move is a smart one. Control of actual gold bullion will be important as we go into these next tumultuous months.
- fabiandesimone 15y ago
  Venezuela should be a much richer country but was controlled by a cabal of wealthy families that siphoned the wealth off I have heard that argument before...many times. Is a very poor argument. Chavez has been in power for 13 years with the highest oil prices in Venezuelan history. Most of that money went to their personal pockets. How do I know this you might ask? It happens that it is LAW. You see, the Chavez government created a LAW that would allow them to set the national budget price, at the time was at 70$ I think (don't quote me on that) and any amount above that would go to a PERSONAL presidential account that Chavez controls and has no OBLIGATION to tell anyone what he is doing with that money. Let me remain you that we spent several years with the prices above 100$ per barrel and that Venezuela produces about 2.5 million barrels of oil PER DAY. I'm not going to pretend the need to do the math here for the HN folks, but just in case, for illustration purposes that personal account would receive somewhere on the lines of... 75 million dollars a day. Try to grasp how MASSIVE that amount is. You see, when you talk about poverty and literacy I simply know that you have not been nowhere near Venezuela. Venezuela is falling to pieces, structurally, morally, economically, etc. We wasted a decade that could have turn our country in to a super power.
  - nodata 15y ago
    > It happens that it is LAW. ..at the time was at 70$ .. and any amount above that would go to a PERSONAL presidential account that Chavez controls This sounds like propaganda. Got a link to this law?
    - fabiandesimone 15y ago
      Sorry I can't find a direct link to the law http://www.noticierodigital.com/2011/04/el-nuevo-herald-chavez-engorda-sus-arcas-para-los-comicios-del-2012/ http://www.noticierodigital.com/2011/04/el-nuevo-herald-chav...
eazolan 15y ago
What about the cost of moving that quantity of gold? They are already talking about 40 trips. Don't they have sea ports in Venezuela? According to Wikipedia and a few calculations, a container ship can carry 412,075 tons of material. Should be cheap to move, expensive to guard though.
ChuckMcM 15y ago
I'm surprised he doesn't talk with Brazil. I mean he could agree with Brazil to get the equivalent tonnage from Brazil and just trade ownership certificates. Tell the bank of england that its Brazil's gold now, and have the Brazilians roll up some bars from the southland. It is an amazing challenge though to get that much 'value' through. Alternatively he could trade it for diamonds and then transfer those?
- jcitme 15y ago
  Bulk Diamonds.. well not worthless, are something like that.

sek 15y ago

Good points. This could be a bad signal, gold is very handy when you need to get out of a country in political change. Didn't had the Wife of the Tunisian Dictator a ton of gold?

hugh3 15y ago
In which case surely he'd keep it in Europe? Or is this Venezuela's gold rather than Chavez's personal gold? In any case, I'm sure that Chavez, like most dictators, has a crapload of money carefully squirreled away in foreign countries. Attempting to steal Venezuela's own gold and then sneak out with all he can carry doesn't sound useful.
- anamax 15y ago
  > In any case, I'm sure that Chavez, like most dictators, has a crapload of money carefully squirreled away in foreign countries. Probably, but where do you think that it came from? > Attempting to steal Venezuela's own gold and then sneak out with all he can carry doesn't sound useful. However, it is useful to steal it and start moving it now. Plus, it's always useful to have some "traveling money" that will work when you're fleeing. You can't afford the time to negotiate good deals.

david927 15y ago

Chavez government has been one of the most corrupt Really? Venezuela should be a much richer country but was controlled by a cabal of wealthy families that siphoned the wealth off. Since Chavez, the poverty rates are down and literacy is way up. The gold move is a smart one. Control of actual gold bullion will be important as we go into these next tumultuous months.

fabiandesimone 15y ago
Venezuela should be a much richer country but was controlled by a cabal of wealthy families that siphoned the wealth off I have heard that argument before...many times. Is a very poor argument. Chavez has been in power for 13 years with the highest oil prices in Venezuelan history. Most of that money went to their personal pockets. How do I know this you might ask? It happens that it is LAW. You see, the Chavez government created a LAW that would allow them to set the national budget price, at the time was at 70$ I think (don't quote me on that) and any amount above that would go to a PERSONAL presidential account that Chavez controls and has no OBLIGATION to tell anyone what he is doing with that money. Let me remain you that we spent several years with the prices above 100$ per barrel and that Venezuela produces about 2.5 million barrels of oil PER DAY. I'm not going to pretend the need to do the math here for the HN folks, but just in case, for illustration purposes that personal account would receive somewhere on the lines of... 75 million dollars a day. Try to grasp how MASSIVE that amount is. You see, when you talk about poverty and literacy I simply know that you have not been nowhere near Venezuela. Venezuela is falling to pieces, structurally, morally, economically, etc. We wasted a decade that could have turn our country in to a super power.
- nodata 15y ago
  > It happens that it is LAW. ..at the time was at 70$ .. and any amount above that would go to a PERSONAL presidential account that Chavez controls This sounds like propaganda. Got a link to this law?
  - fabiandesimone 15y ago
    Sorry I can't find a direct link to the law http://www.noticierodigital.com/2011/04/el-nuevo-herald-chavez-engorda-sus-arcas-para-los-comicios-del-2012/ http://www.noticierodigital.com/2011/04/el-nuevo-herald-chav...

eazolan 15y ago

What about the cost of moving that quantity of gold? They are already talking about 40 trips. Don't they have sea ports in Venezuela? According to Wikipedia and a few calculations, a container ship can carry 412,075 tons of material. Should be cheap to move, expensive to guard though.

ChuckMcM 15y ago

I'm surprised he doesn't talk with Brazil. I mean he could agree with Brazil to get the equivalent tonnage from Brazil and just trade ownership certificates. Tell the bank of england that its Brazil's gold now, and have the Brazilians roll up some bars from the southland. It is an amazing challenge though to get that much 'value' through. Alternatively he could trade it for diamonds and then transfer those?

jcitme 15y ago
Bulk Diamonds.. well not worthless, are something like that.