Gold Hits New Record After Chavez Announces Plan To Pull Reserves From US, European Banks

August 18th, 2011

FAKE NEWS for the Zionist agenda

Venezuelan leader to withdraw $11B in gold reserves to protect against “disturbances” in financial system

Paul Joseph Watson
Infowars.com
Thursday, August 18, 2011

Despite a report from the World Gold Council showing that demand for the precious metal has subsided, gold soared to a new record high today on the back of another stock market plunge and an announcement from Venezuelan President Hugo Chavez that the country’s gold mining industry would be nationalized.

Gold touched a new record high of around $1827 dollars an ounce as the Dow Jones plunged by 500 points in early trading.

Gold soared to new heights even in the face of a World Gold Council report that said demand was down 37% year on year.

However, the report noted that there was “increasing acceptance of higher price levels” globally, which explained a modest 3% fall in recycling gold on the supply side.

Although today’s new high for gold is obviously being driven by a flight to safety as the stock market crumbles, Hugo Chavez’s announcement last night that he was to nationalize the country’s gold mining industry undoubtedly has had an impact on today’s trading.

A d v e r t i s e m e n t

Chavez likened the people that control the gold industry to “the mafia,” stating, “We can’t keep allowing them to take it away,” as he made public plans to withdraw $11B in gold reserves from U.S. and European banks, including 99 tonnes held with the Bank of England and other reserves held by J.P. Morgan Chase, Barclays, HSBC and Standard Chartered, France’s BNP Paribas and Canada’s Bank of Nova Scotia.

Of the country’s 365.8 tonnes of gold, 211 tonnes is believed to be held abroad.

“At the time of these disturbances, it’s preferable to recover our assets, in this case the gold, and have it here in the vaults,” Venezuelan Central Bank president Nelson Merentes said, adding that it would be re-invested in more stable economies like China, Russia and Brazil.

Venezuelan Foreign Minister Nicolas Maduro said the move was part of a plan to create a “new international monetary system” as an alternative to the crisis-hit dollar reserve structure that currently governs the financial world.

Chavez’ decision to pull gold reserves out of the United States and Europe is only going to increase concerns about lack of mine supply, which is already set to fall by around 5.1 per cent this year. This will ensure gold sails through the $2000 barrier sooner rather than later.

As the George Washington Blog notes, “Nationalizing Venezuela’s gold means less gold available in the free market, and the scramble for physical gold to make good on Venezuela’s recall demand could challenge the 100-to-1 leverage levels of paper gold derivatives to physical gold.”

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Paul Joseph Watson is the editor and writer for Prison Planet.com. He is the author of Order Out Of Chaos. Watson is also a regular fill-in host for The Alex Jones Show.

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Comment Rules

24 Responses to “Gold Hits New Record After Chavez Announces Plan To Pull Reserves From US, European Banks”

Paper Gold derivitives? Didnt those morons learn their lesson the last time? I got to say whatever idiot thought up the stock market should have been shot along with all those morons who constantly bet on stocks going up or down. I was pretty sure thats why there are so many casinos’ in the world I think they call them safe places to gamble… so gamble there dont gamble with the future of the worlds economies GEEZ WHAT IDIOTS!
Now the question is: Can the banks and depositories come up with the Gold? Is it real? Is it still there?

There is a not trivial possibility that one or more of the institutions will default on the gold delivery, since they have already sold their gold to shore up their balance sheets and hold down the gold price.
- Yes to all the questions. My guess is this is another Libya. I think Gaddafi was about to do the same thing. In fact, he was about to start his own currency based on gold and silver, this is where the problem started for Libya.
  
  It will be interesting if the deliver is made. Physical gold is the ONLY way to go. Forget the paper certificates as ChinaWildMan said.
  
  Beacon
Just a word of advice, if your gold is ETF Paper Gold you’re in big do do. The ONLY GOLD that will stay Golden is physical GOLD in a safe.

God Bless Ron Paul

Stop the Madness, Ron Paul for President 2012
From the comments it looks like “infowar patriots” have found in Hugo Chavez someone that hates America almost as much as them. Keep up the good work.
- Hates America, you’ve got to be kidding, the only ones that hate America are the folks in the FED that are killing the dollar and those traitors that call themselves our elected leaders but are facilitating the FED Agenda.
  
  The ONLY way to end this is to mimic Iceland and repudiate the DEBT the BANKERS foisted off on the US TAXPAYER sending it right back to the BANKERS who CREATED the PROBLEM, LOST THE GAMBLE and NOW SHOULD PAY UP ON THOSE LOSING BETS. We the PEOPLE AREN’T IN THE BUSINESS OF INSURING FAT CAT BANKER BETS WHEN THEY LOSE.
  - What do you think brother China? Is “IsItOverYet” a cop or a public school teacher?
    
    I’m leaning toward the latter … Kindergarten, probably.
- Instead of posting such infantile nonsense, how about defending your apparent position that “America” in its current state, is NOT in need of a peaceful revolution?
  
  Your feeble attempt to lump in “Infowar Patriots” with communists is laughable. In fact, it is EXACTLY what most of us here are wanting to prevent – or at least a corporatist version of it.
  
  Is it over yet? Yeah, I’m afraid it is, if most Americans just continue to ignore things like you seem to want to do.
- I don’t hate America; I hate its administration, big difference. I would also encourage you to do some research on South America and Cuba. Better yet, visit those places and see things are not as bad as the Western world suggests. They live well within their means. It’s a very simple lifestyle. Families there are oblivious to debt.
  
  Beacon
Chavez has given the US Dollar a wedggie and the Bankers are crapping their pants.

If I had more money to buy Gold and Silver I would.

God, Gold and Guns insure your future now!
- G,G and G = 777
I’m a bit concerned about buying anything in any currency until this is all straightened out, if ever. I think buying property (land) might be the safest bet. Anyway I’ve liked all you guys post. Thanks for the truthful humor.

Man I hope RP can get in and we head all this off! Still I know it’s going to get pretty rough on people before that happens.
Sounds like he’s doing the right thing to me. Just imagine if everyone who bought paper gold said, “I want it now.”! placeofrefuge2012.com
- Bingo Marla!
  
  Beacon
- Yeah Marla, I’d say! You Think they might start listening a little closer to old RP!
This is such an amazing move by Hugo. He’s calling them out as well. I wonder what Fidel is saying now. He always gives some great analysis on the situation. If you’re interested Google ‘reflections of Fidel’.

I agree 100% with Raw Milk, Jim Sinclair says the same thing. Sprott is a good place to start if you’re new.

Beacon
Chavez want to save his assets from UK US banks.
however, Chavez u should save ur citizens’ assets too.
same powermongers try to protet their assets more n more.
Don’t look now, but I think Al Queda has been spotted in Venezuela and it has been Chavez all along as the leader.
- Chavez is OUR CIA?
  - Wow, I didn’t know that. thanks…
    - What a twisted tail this is all becoming, huh
good thing Chavez got his gold out of the U.S. and U.K before they got around to attacking him and freezing his assets. it is only because of the resistance of Libya and The Colonel that they aren’t on Venezuela already.
So true! I saw this this morning on Drudge and thought it quite a breathtaking development!

I bet the UK and US banks are scrambling their ASSES off to gather up all the gold Venezuela wants back!

Ha ha!!! Would love to see those central bankers sweating in their little Armani suits! Must be quite the underarm stain!

Poor Hugo….when he finds that those vaults are EMPTY, he is going to be PISSED!!!

Tip: If you can afford it, buy mining stocks based on the Canadian currency….not US $. Bob Chapman said so!
- Yeah, market tumbling.. ALL THE NUMBERS obama and fee have been tossing out are BS.. World is finding out how bad it is now.. Running away…. dow down 4.6… the herd is stampeeding..