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Post by Hobbyfarmer on Aug 18, 2011 12:54:25 GMT -5
Politics
Chavez Recalls Gold Held in U.S., Europe
Published August 18, 2011
| FoxNews.com
Venezuelan President Hugo Chavez announced this week that he plans to return billions of dollars in gold reserves currently held in the U.S. and European banks back to his country's central bank, amid a plan to nationalize gold production.
In a string of statements Wednesday, Chavez and top administration officials said they would bring home $11 billion in reserves held overseas. They cited a desire to protect the country from economic troubles in the developed world.
Central Bank of Venezuela President Nelson Merentes said gold reserves that have been taken out of the country since the 1980s will be returned and other assets "will be transferred to countries with more solid economies ... to protect the Venezuelan economy," according to a statement on a Venezuelan government website.
The $11 billion held outside Venezuela is part of the country's $18 billion in total gold reserves.
Merentes said the government wants that gold in its vaults during "the time of these disturbances."
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Post by Hobbyfarmer on Aug 18, 2011 13:12:24 GMT -5
How many will want physical possession of their precious metal in "storage for safe keeping"?
This isn't just one little dictator doing this either.
The dirty little secret is that the big banks have been practicing "fractional reserve" gold and silver banking along with "fractional reserve" lending. Somebody is going to NOT have a "chair" when the music .stops.
The price is/has exploded as the major banks are offering more "pretty printed paper" trying to cover the real owners demand for delivery. It is a shell game with not enough peas.
All the mined gold in the World would only make a cube 67 foot square if in one place at one time. Do you know where yours is?
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Post by Hobbyfarmer on Aug 18, 2011 13:54:23 GMT -5
Market Pulse
Aug. 18, 2011, 2:04 p.m. EDT
Gold ends at record $1,822 an ounce
By Claudia Assis SAN FRANCISCO (MarketWatch) -- Heightened fears of a U.S. recession sent gold past a $1,800 settlement on Thursday. Gold for December delivery GC1Z +1.87% added $28.20, or 1.6%, to end at $1,822 an ounce on the Comex division of the New York Mercantile Exchange. A steep drop for U.S. equities and a slew of mostly negative macroeconomic data sent investors to the perceived safety of gold.
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Post by looter on Aug 19, 2011 7:43:05 GMT -5
There is a small degree of backwardation developing in the gold market with certain near term futures contracts now trading at higher prices than longer term contracts. The near term August ’11 contract was trading at $1871.40/oz while June ’12 contract is trading at $1,870/oz (1216 GMT). The spread between spot and longer term contracts has fallen suggesting that gold may soon join silver in backwardation. The possibility of backwardation in gold suggests that major investors are concerned about the supply of physical gold. Buyers are concerned about securing supply in the future and are willing to pay a premium for spot or immediate delivery. It could indicate that the short squeeze anticipated by many is taking place and we could see a sharp upward move in goldprices. This would not be surprising considering the very small size of the physical bullion markets versus the size of the overall financial and currency markets and considering the high demand coming from investors and central banks globally. It is worth remembering what happened when silver went into backwardation some months ago. It led to a price surge from $30/oz to over $50/oz in 10 weeks. Backwardationrarely happens in the gold and silver bullion markets. Since gold futures first started to be traded in 1972 (on the Winnipeg Commodity Exchange), there have only been momentary backwardations of a few hours. It suggests that larger goldbars are difficult to acquire in volume and that the physical market is becoming stressed and less liquid.
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