Chavez repatriates Venezuela's foreign gold reserves

Chavez repatriates Venezuela's foreign gold reserves

Venezuela has received its first shipment of gold bars, after President Hugo Chavez ordered the repatriation of 85% of the country's bullion reserves.

The gold was unloaded from a plane and taken under heavy guard to the Central Bank in the capital, Caracas.
President Chavez has explained the move as an act of sovereignty that will protect Venezuela's reserves from global economic turbulence.
However critics say it is expensive and unnecessary.

Venezuela plans to bring home around 160 tonnes of gold, worth more than $11bn (£7bn).
"The gold is returning to where it was always meant to be: the vaults of the Central Bank of Venezuela," Mr Chavez said. 

Hundreds of troops lined the route to Caracas as a convoy of armoured security trucks escorted by military vehicles carried the bullion to the bank.
'Historic act' Officials said the gold had come from European countries but did not say how much was in the first shipment, citing security concerns.
Central Bank chief Nelson Merentes said the return of the gold to Venezuela was a "historic act".
"It has historic value, it has symbolic value, and it has financial value," he said.
"The country's finances will be backed by autonomous wealth, so we are not subject to pressure from anyone."

Opposition groups have criticised the move as a populist measure aimed at boosting Mr Chavez's popularity ahead of next October's presidential elections, when he is seeking another term in office.
Some critics have suggested that Mr Chavez is acting out of fears Venezuela's overseas assets could one day be frozen by sanctions, as happened to his friend and ally, the late Libyan leader Col Muammar Gaddafi.
Most of Venezuela's foreign gold reserves are held in London. 

http://www.bbc.co.uk/news/world-latin-america-15900885

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Top Gold Seers Forecast Record High in March

The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved.

Futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. Two declined to give forecasts.
Holdings in exchange-traded products backed by bullion rose the most in three months in October, and the most-widely held option gives owners the right to buy gold at $2,000 by Nov. 22.

Demand for the metal accelerated since May as slowing growth and mounting concern that European leaders will fail to contain the region’s debt crisis caused $7.5 trillion to be erased from the value of global equities.

http://www.bloomberg.com/news/2011-11-01/top-gold-forecasters-see-bullion-rallying-to-record-by-march-commodities.html