Venezuela to Sell or Swap 1.45 Million Oz of Gold to Goldman Sachs

Bernanke-Dimon-Fed-TunnelVenezuela’s El-Nacional is reporting that Venezuela has signed an agreement with the Vampire Squid to swap or exchange 1.45 million oz of the country’s international gold reserves effective Oct 2013, with the agreement running through Oct 2020.
The gold reportedly is currently being held at the Bank of England, and will be PHYSICALLY DELIVERED TO GOLDMAN SACHS in exchange for US dollars from Goldman.
We wish both Germany and Venezuela well in obtaining a single ounce of their physical gold reserves back in 2020.

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Via Google Translate:

Venezuela’s Central Bank to Trade Gold with Goldman Sachs

By Vera White Crocus
El Nacional, Caracas, Venezuela
Tuesday, November 19, 2013…

Venezuela’s Central Bank and Goldman Sachs are ready to sign an agreement to swap or exchange international gold reserves, with a start date in October, as stated in the contract, and until October 2020.

The negotiated amount, equivalent to 1.45 million ounces of gold, are deposited in the Bank of England and the transfers are made directly to Goldman Sachs once delivery times are stipulated.

The operation involves the delivery of gold from the central bank, which will receive dollars from the U.S. firm. The transactions are made through the creation of a financial instrument that is traded in the international market.

During the term of the instrument is an account called “margin,” in which the central bank agrees to deposit a larger amount of gold in the event that the price of gold falls or in which Goldman Sachs deposits a larger amount when gold increases. “At the expiration of the transaction the contributions are returned to their owners,” the document says.

There will be an adjustment to the asset value of 10 percent, to be used as a hedge in case the international market price falls, indicating that the U.S. bank takes care that if it produces a depreciation it will be covered and Venezuela would assume risk. The annual interest rate will be a combination of dollars with the call BBA Libor equivalent to 8 percent.

The gold dollar instrument is sold in the secondary market that exists for this type of instrument and can be purchased by investors, usually businesses. The idea is to negotiate the instrument to obtain a commission that becomes profitable, depending on the price of the metal.

Any dispute between the parties will be resolved in English courts.

The contract is presented by the representative of the central bank, its President Eudomar Tovar. Gold bullion deposited abroad was placed in the vaults of the central bank in 2011. It is estimated that only 15 percent was outside the country. The projected cost of the transfer was $7 million. The first bullion came from France in the middle of an operation called Patriot Gold, involving more than 500 officers.

On that occasion the then president of the central bank, Nelson Merentes, said that first shipment was part of the 160 tons of gold that would move back to the country in several shipments, which represented 85 percent of the international reserves in bullion held nationwide.

The economist Jose Guerra explains that this operation is being undertaken because of the fall in international reserves. At December 31, 2012, they closed at $29.8 billion and in contrast on Nov. 15 totaled $20.6 billion, a loss of $9.9 billion in 11 months.

“The gold operation aims to give liquidity to the Central Bank of Venezuela when they are in the lower limit since 2004. Just $1.2 billion are liquid at this time and are used to fund 10 days of imports.”

Guerra adds that there are needs for payment and to Colombian entrepreneurs, who are paying a portion in bonds, but others did not accept the cash and demand mechanism. We also have to replenish inventories for appliances and other products, and plan to use this new money.

“The Republic ended up taking us into the hands of a Goldman Sachs mortgage by this gold operation.”



sic semper tyrannis


  1. After a short detour, heading straight to China no doubt.

  2. Hugo Chavez just turned over.

  3. As much as I dislike the company they are still very clever and have insiders knowledge.  I am sure they know that aggressive inflation is soon upon us and are now beginning to stack. The 10% safety factor in current prices they negotiated (as noted above) is most likely the new base price (1250x.9=1125) in the ongoing smackdown …
    Just another reason they are called GOLDman  SACKs [sic]

    • Bunch of crooks if you ask me. Not so clever. Eventually they will face justice.

    • There doesn’t seem to be any evidence that GS is stacking.  More likely, they are flipping this gold and both China and India seem like strong candidates as buyers.  I am pretty sure that GS is not at all concerned about smuggling gold into India if the profits are sufficient to justify their efforts.  They could also be seeking to parlay this gold into an oil bonanza with some Middle Eastern Sheikh.

  4. GOLDMAN S(T)ACKS    lol

  5. They are taking the cash because they know their Gold reserves held internationally aren’t really being held internationally.  At the very least nobody is coughing up Venezuela’s Gold.  

  6. This seems bogus to me germany get there gold back come on. All Germany has to do is ask for dollars back instead ,we know the government has lots of these. Then go to the comex an actually buy it. Causing the prise to rise. An if the u.s. gov still not give them cash it would mean the u.s.a. defaulted. not going to happen. The whole thing is a joke,

  7. The contract says that if the price of gold goes lower Ven. will need to deliver more gold to G S. LMAO- Don’t they know G S will use their gold to keep the price down or lower it. DUH!

  8. Desperation pure and simple.

  9. Another rabbit pops out of the magic hat.  They will need this tonnage in December.  It won’t last long.  Venezuela wants to give away televisions and Ipods I read somewhere, so they are trading that gold for electronics from China.
    Reminds me of us.  We are stupid as hell, too.

  10. in which the central bank agrees to deposit a larger amount of gold in the event that the price of gold falls or in which Goldman Sachs deposits a larger amount when gold increases. “At the expiration of the transaction the contributions are returned to their owners,” the document says.
    Are these people dumb or what? or paid off? I think I just wrote my answer. Keep Stacking

  11. Shortly after Goldman declares gold a “slam dunk sell”. This is great evidence that Goldman simply takes the opposite side of the position they telegraph…
    1.45 mill oz. won’t buy them much time–not at these prices–that is, if it’s even there, which is a huge caveat…

  12. Costa Rican Dollars? Puerto Rican Dollars? No! No! Ame-Rican dollars!!  Yum Yum!!!

  13. SOmehow GS will end up stealing the phyzz.  Madruno is a moron and venezuela is a freaking debt/fiat wreck   Besides which, Madruno promised 400,000 Samsung 5G to the homies.   That takes some cash.   This is how idiots operate

  14. Gold that is already in China and not in England…

  15. Is it just or do others see India controls on gold and the current draconian price smash downs as planned so the cartels can soak up gold bullion to repatriate Germany’s gold? Dry up India’s buying and walla, gold for the taking? How ’bout 16 thousand on the DOW and a Chicago Fed’s Evans says QE ramped up 50% in 2014 putting 23% on the end of 2014 S&P 500? Feasible?

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