Bring home the gold!

Chavez flies Venezuela gold home to avoid EU turmoil

Billions of dollars worth of gold is being flown around the globe in a massive drive to bring home Venezuela’s riches from the West.

the Telegraph, 

11 December, 2011

Officials are under orders from Hugo Chavez, the country’s socialist president, to repatriate the nation’s gold reserves against the backdrop of a wider effort to nationalise its gold sector.

Last week Venezuela said it had safely received its second load of gold from overseas. It would not give much detail, but the first cargo welcomed by flag-waving crowds last month was said to be18 tonnes worth some $300m (£192m).

Chavez argues his nation needs to protect its gold from the economic turmoil in the West.

“I have nothing against Europe. I am just telling the truth,” he said. “Who knows if a king or NATO comes and issues an insane decree-law? That gold is ours.”

His opponents criticise the expense and security risks, and suggest he is secretly worried that Venezuela’s foreign reserves risk being frozen by sanctions.

Others say – with tongue firmly lodged in cheek – that the desire to keep his gold in physical form puts Chavez ahead of the curve in terms of investment trends.

Regardless, the country’s central bank, the holder of Latin America’s biggest gold reserves, is now busy bringing back some 160 tonnes of gold – the bulk of its foreign bullion reserves – held at banks abroad, including the Bank of England.