Is Venezuela ready to sell 80 tonnes of gold?
Adam Pike, News Editor
22 Oct 2015, 12:10 p.m.
With over $5 billion of debt maturing before the end of 2015, will Venezuela be forced into selling 80 tonnes of gold? Following years of financial mismanagement and the sudden drop in the oil price the Venezuelan economy is again on the brink of collapse.
With the majority of the countries reserves held in gold bullion the government may have to sell up 80 tonnes of gold to stop the country defaulting on its debt obligations. Venezuela owns 361 tonnes of gold and has the 16th largest hoard of central bank gold.
In April the countries leader, Nicolas Maduro, sold 1.4 million ounces to U.S. bank Citigroup for $1 billion. In November 2011, former President Hugo Chavez ordered the repatriation of 180 tonnes of gold from the Bank of England in an effort to end the dictatorship of the U.S. dollar.
With hindsight this was no mean feat considering the difficulty Germany has faced repatriating their gold bullion from the New York, Paris and London.
With gold in tight supply is this an attempt by western banks to liquefy the gold market before supplies run dry?