Traders Prepare for Chávez' Gold Transfer
Source: Financial Times, Jack Farchy and Benedict Mander (8/19/11)
"The move is part of a broader strategy to decrease dependence on countries that Venezuela considers hostile."
Bullion traders are preparing for one of the largest transfers of physical gold in recent history after Hugo Chávez, Venezuela's president, ordered the country's gold reserves to be returned to Caracas.
Venezuela's central bank is the world's 15th largest holder of gold, with 365.8 tons, of which some 211 tons, worth $12.3B, are held overseas, according to a proposal for the transfer from the Venezuelan central bank and finance ministry.
The move is part of a broader strategy to decrease dependence on countries that Venezuela considers hostile: the proposal document cited the possibility that the U.S. Federal Reserve could freeze dollar assets. . .View full article