Is this the fuse that will light the Gold run on the bullion banks? Can't wait until a few more countries do this and the headlines read, Countries unable to redeem their gold certificates from major bullion banks because the banks issued more certificates then there is physically redeemable. Slam
It'll be a while heh. Media outlets will write "Crazy dictatorship/evil communist countries denied of Gold on grounds of humanitarian reasons" etc. It's only a matter of time though.
I don't see what credibility has to do with anything here. Do you mean that Venezuela is less credible than these other countries? On what basis? I think different issues might be getting mixed up here. When a country's assets/resources are nationalised, it doesn't mean that they will no longer be for sale or that trading will stop. After all, middle eastern oil are owned by government corporations, aren't they? Private corporations can be engaged in the production of the various end-products, but the industry itself could still be controlled by the government if it is what's beneficial for its citizens. Obviously, that isn't going to be popular with foreign-controlled private corporations. This is not too different from the argument which posits that a country like greece shouldn't have to sell its assets (e.g. islands, the parthenon, etc.) at firesale prices just to pay off its debts when it can float those same assets and raise investments based on their future income streams. That way, the country continues to own the assets, but profits could be shared amongst investors (ideally, the people through the government would be a major shareholder). It is when private debts are nationalised that the most damage is done. Also, when investors cannot redeem their gold certificates from the banks, it is likely due to the banks leasing out their gold (and using accounting trickery) or not having the enough gold to begin with. Just my humble opinions of course.
The mere suggestion of nationalization of gold mines will send the sp of overseas miners down. Guess oz based gold miners might have their day if this builds momentum.
Credibility to the moms and dads and the Joe sixpacks out there. Who's gonna care about some random country which may or may not be communist or facist or socialist? Much easier to discredit some random south american country than it is a famous credible country. Sure most stackers know where Venezuela is but there are plenty of people who would only know that country if it was mentioned on Masterchef. Now if a credible and well known democratic* country, such as say Canada wanted to take delivery of 10 tons of Gold it would be MUCH HARDER for the mass media to discredit or ignore them.
whats wrong with making a buck off exporting a commodity? our internal market isn't big enough to support the industry. just like the saudi's keeping all their oil to themselves. its all about being attractive and stable enough for investment but earning enough off of it at the same time.
Only problem is, in this case, you're trading real money (i.e. Gold & Silver) for an IOU written on a piece of paper from (possibly) an nation who's economy is about to go China Syndrome and melt through the floor. I don't think that's wise in the long term.
well yes and no but there is such a thing called the terms of trade. yes we export something good and in return we buy whatever they have. SE Asia can be anything from poorly made junk to vehicles and technology that we aren't good enough to produce or have a government like the US that runs our work force out of town....or the country. so the problem isn't that we dig it up and sell it, thats a good thing. the problem is the rest of the economy. start worry about it and less on the mining industry....the mining industry is doing ok.
So were Venezuaela's foreign owned gold miners until Chavez put export controls in place. They now hold about 65% of their foreign reserves in the form of gold. It isn't exactly working out badly for them. (But yes, I take your point).
that is turning out a good thing for Venezuelans and the rest of the world. the less exporters or net importers the better for us all.....or at least us small fries. get the physical while you can.
First of all, credibility pertains to trustworthiness, and I don't think any of us would be in a position to say that Venezuela's leaders are more or less trustworthy than those in western countries. Second, according to the World Gold Council, Venezuela is no. 15 in terms of official gold holdings; Canada is no. 78. I think most people would be surprised that Australia is no. 35 (behind Romania and Poland). So, if it's just a matter of people being too dumb to know anything about the world, then I say it's our duty to talk sense, use facts, and point to references rather than echo the false information persistently repeated out there. Sorry, but I don't respond well when developing countries are belittled and democracy is discussed as if it is the hallmark of upstanding global citizenship (especially when powerful democratic and 'freedom-loving' countries like the U.S. and the U.K. perpetuate financial fraud and war mongering). Last time I checked, the Venezuelan political structure resembles what most people would associate with a democracy and Chavez was elected by the majority of the people. Unfortunately, the western media is hell-bent on demonizing him, Venezuela, and any other country that stands up to the U.S. and the U.k. Alas, that's all I'm going to say as I find discussing politics and economics these days is almost as tiring as discussing religion with the religious.
You aren't getting my point. The point is a lot of people out there don't give 2 sh*ts about Venezuela and don't know what it is and thinks Hugo Chavez is the next coming of Hitler. It is very easy for the US media conglomerates to discredit this small country as opposed to say, Canada or Australia. Hence the whole 'credible' argument. Yes people are too dumb that's my point. They are too dumb and as such won't realize the implications of Venezuela demanding to get its gold. It will not be until other big wigs start demanding the same that SHTF. You make it sound like I'm putting down other countries that aren't western. Way to miss the point. Learn to read before becoming all emotional?
