A month ago, Hugo Chavez shocked the international bankster community by demanding the return of Venezuela’s gold held abroad in cartel vaults in London and New York, and also nationalizing Venezuela’s gold industry.
Apparently Chavez is serious about his PHYZZ.
On Monday, Chavez upped the ante, BANNING ALL GOLD EXPORTS FROM VENEZUELA.
Its unclear whether this extends to capital controls, or just applies to mined gold.
Venezuela will extend its nationalization movement by banning the export of gold out of its country. On Monday, new guidelines laid out by the Official Gazette said, ” All gold that is obtained through mining activity within national territory will be handed over to the Bolivarian Republic of Venezuela.
The government will have a monopoly of production and sales.”
The decree also states that the government will hold at least 55% of any joint ventures, and sets a royalty rate of 10% to 13%. The rate could fall to as low as 3% for small community based operations in the country’s southeast region. Companies will have 90 days to form joint ventures and all gold production will be sold to the state.
In order to enforce the gold nationalization, Venezuela will establish military zones using the National Guard to reduce illegal mining operations. In May, Hugo Chavez claimed that Venezuela produces 11 metric tons of gold a year, but illegal miners extract another 10 to 11 tons a year.