Venezuela Nationalizes Entire Gold Industry

Forget Central Bank Purchases, We’ve Moved into the Nationalization Phase of the gold bull market!

Reuters headlines report that Hugo Chavez, the dictator of Venezuela has announced the nationalization of the entire Venezuelan gold industry.
We have stated here repeatedly that the REAL risk of gold/silver confiscation is that of MINING NATIONALIZATION.
Today’s announcement by Venezuela should make that crystal clear.
For those holding Rusoro mining shares you are SOL with a single announcement.

From Reuters:
Venezuelan President Hugo Chavez said on Wednesday he will nationalize the gold industry, including extraction and processing, and use its output to boost the country’s international reserves.

The move follows a dispute between his government and foreign miners who say the rules limiting the amount of gold that can be exported from the South American nation hurt their efforts to secure financing and create jobs.

Toronto-listed Rusoro, owned by Russia’s Agapov family, is the only large gold miner operating in Venezuela. It produced 100,000 ounces last year.

The gold industry will be just the latest part of the economy to be put under state control by the socialist leader, who said he would issue the necessary decree in the coming days and called on the military to help control the sector.

“I have here the laws allowing the state to exploit gold and all related activities … we are going to nationalize the gold and we are going to convert it, among other things, into international reserves because gold continues to increase in value,” Chavez said in a phone call to state television.

The announcement came a day after an opposition legislator revealed a report showing the government’s top finance officials were recommending the repatriation of 90 percent of Venezuela’s gold reserves held abroad.

The government has not commented on the report, which the opposition legislator said Chavez had yet to approve.

“We’ve managed to increase the international reserves. We have close to 12 or 13 billion dollars in gold reserves. We can’t allow it to continue to be taken away,” the president said, referring to reserves held in banks overseas.
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  1. so it has already started, nationalization will now lead to trade wars

  2. Fuck me… I was just talking about this to a friend's father that controls about a million in the markets… he pulled out in April and is sitting watching for the time and what to buy… I was suggesting some high dividend paying energy stocks that are a bit depressed right now and he mentioned Gold stock… where I told him that he has to be sure of where the companies assets are before he jumps into that game… and two hours later you post this?

  3. Like we didn't see this coming…

  4. Gold Bullion is probably the best

  5. @ Rex… exactly… the next question is how many other countries may follow suit.

  6. That's why you want to be holding the Phyzz. Not the paper.

  7. The first domino! Who wants to place some bets on #2? Bolivia, Peru, Equador, Honduras, Chile, Mexico. The only safe places down here is Panama, Uruguay, Argentina, Costa Rica, Brazil and maybe Colombia. Every dictator, Obama included are licking their lips in anticipation.

  8. 2012 is around the corner and all the socialist dumbshits are going to evaporate.Those that don't want to work will starve themselves to death too.

  9. Anonymous says:

    This is why I favor bullion and shun mining.
    This applies in the US and Canada too you know.
    Think about it; once the PM values get high enough (Venezuela just had a low threshold), and/or when the new monetary system references gold, the mines get declared a vital Nation resource. Case closed.

    For another source of real confiscation watch your 401K, IRA, and pension. They have already stealthily confiscated value from your home. These are the places "were the money is."


  10. "Today We Salute YOU, Mr. Gold Nationalization, Kick JP Morgan in the balls MAN!"

  11. Anonymous says:

    Still some heroes among us

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