Will gold save us in a "Venezuela scenario"?

Discussion in 'Markets & Economies' started by TreasureHunter, Apr 19, 2017.

  1. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    10,381
    Likes Received:
    2,698
    Trophy Points:
    113
    Location:
    Pulau Alor ;)
  2. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    3,537
    Likes Received:
    769
    Trophy Points:
    113
    Location:
    Treasure Island
    Well, fact is that even if you own a lot of gold, it won't help you much if you are living in Venezuela: there's almost nothing you can buy!

    But still, I'd like to know more about how gold is being bought-sold over there right now. Not enough (barely any) media coverage about how gold's doing out there.

    It didn't follow the pace of inflation either. So, you'd still end up poorer with gold in your hand! Just slightly better than with fiat money! And why did that happen in Venezuela?

    I would also be curious what Peter Schiff and the like would say about gold's poor performance in Venezuela...
     
  3. errol43

    errol43 New Member Silver Stacker

    Joined:
    Apr 13, 2010
    Messages:
    6,203
    Likes Received:
    12
    Trophy Points:
    3
    Location:
    Bundaberg
    Wasn't it reported that people from Venezuela were crossing the border into Peru to buy much needed goods like toilet paper, medicines food and essentials. Traders in Peru would only take US$...Having Venezuelan Currency would not help! Sell the gold in Peru for US$ and buy what you must.

    Regards Errol 43

    PS. Gold Pelican? Moderators... Seems like I mad a big mistake in changing over to the new SS site. Seems like I am now a new member though I joined around 2010,

    Old name Errol 43.. Mistake made new SS sit Errol 1943.. Can you please correct?
     
    Last edited by a moderator: May 27, 2017
    JOHNLGALT likes this.
  4. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    3,537
    Likes Received:
    769
    Trophy Points:
    113
    Location:
    Treasure Island
    ^

    Peru is a bit far from Venezuela... it's either across dense Amazonian jungle and across either Colombia or both Colombia and Ecuador.

    That's not to say I don't believe you!

    It's true that Venezuelans are migrating to neighboring countries in search for a better life: Colombia and Brazil are popular.
     
  5. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    10,381
    Likes Received:
    2,698
    Trophy Points:
    113
    Location:
    Pulau Alor ;)
    Bank of England urged to give Juan Guaidó Venezuela's gold
    https://www.theguardian.com/world/2...rve-interim-leader-rather-than-nicolas-maduro
    'You declare yourself PM of Western Australia, and you keep the gold from London...what a good deal'
    Interim leader has asked UK to send £1.2bn reserves to him rather than Nicolás Maduro

    US announces sanctions against Venezuela's state oil company PDVSA
    https://www.rt.com/news/449994-us-sanctions-venezuela-oil-maduro/

    So it turn out gold and oil can not save Venezuela
    but if those gold are given to Russia to mine and oil to China
    then Venezuela would be safe
     
    JOHNLGALT likes this.
  6. JOHNLGALT

    JOHNLGALT Well-Known Member

    Joined:
    Apr 3, 2017
    Messages:
    2,822
    Likes Received:
    953
    Trophy Points:
    113
    Location:
    Country Victoria Australia
    The short answer is, - YES. YES.jpg YES.jpg
     
  7. Skyrocket

    Skyrocket Well-Known Member Silver Stacker

    Joined:
    Jul 20, 2014
    Messages:
    6,086
    Likes Received:
    1,060
    Trophy Points:
    113
    Location:
    Melbourne
    Give Venezuala their gold back you brittish pric ks
     
  8. systematic

    systematic Well-Known Member

    Joined:
    Jun 6, 2010
    Messages:
    6,918
    Likes Received:
    387
    Trophy Points:
    83

    People often think of government as a noun when it is actually a verb ....
     
  9. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

    Joined:
    Jan 8, 2016
    Messages:
    4,255
    Likes Received:
    1,110
    Trophy Points:
    113
    Location:
    North Sydney
    Maybe I am wrong... but I always thought Countries had gold and currency in safe sovereign states like USA, UK, Switzerland as international collateral.

    Venezuela government have XXX tons of gold, but many tons are leased, some are guarantees for x currency and only few tons would be unencumbered.

    So if Venezuela has used the gold as collateral... 5 tons of gold as collateral for Australian currency ie 5 tons of value is owned by Australian Reserve Bank. Is it OK for England as custodian to hand back to gold to Venezuela and give the finger to Australia?
     
    SilverBags and paruwka like this.
  10. systematic

    systematic Well-Known Member

    Joined:
    Jun 6, 2010
    Messages:
    6,918
    Likes Received:
    387
    Trophy Points:
    83
  11. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,688
    Likes Received:
    3,201
    Trophy Points:
    113
    Location:
    Australia
    Socialism is all very good in theory, but in practice it leads to destabilisation of your government by CIA forces.

    :D
     
    Last edited: Jan 31, 2019
    GF likes this.
  12. systematic

    systematic Well-Known Member

    Joined:
    Jun 6, 2010
    Messages:
    6,918
    Likes Received:
    387
    Trophy Points:
    83
    Again ... the CIA is another group of people .... groups of people with vested interests ....
     
  13. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    3,537
    Likes Received:
    769
    Trophy Points:
    113
    Location:
    Treasure Island
    Look back at the Bolivar's rate of inflation and compare that to the price of gold in Venezuela.

    It's sad, but it seems like gold doesn't follow the pace of inflation. Or, at least in Venezuela it did not.

    So, if you had gold in Venezuela, its worth would still get devalued, but not as much as fiat currency. Still, you'd end up with a tremendous loss.

    I think this happened there, because there was little demand for gold there (perhaps the Venezuelan masses did not turn to gold and/or there was no gold available to buy for investment purposes and/or because of regulations...). But I think that's not the case in the US/AUS/Europe/Asia... or, is it?
     

Share This Page