Another Day Another Work-Around: Venezuela Will Refine Gold In This Nation To Avoid US Sanctions

Venezuela takes action to avoid sanctions and the US-centric Western financial systems. Here’s the details and why it matters…

We know that gold matters.

Gold is money.

When the US imposes sanctions on nations, it essentially bars those nations from using Western, dollar-centric systems.

Using sanctins is one of the ways the US strong-arms nations around the world.

This often backfires, however, because of gold, the ultimate currency.

You see, when the United States put the last round of sanctions on Iran, on a national level, there was an “oil for gold” scheme with Turkey that allowed Iran to keep producing and to keep selling oil onto the market, in spite of the US imposed sanctions. Additionally, on a local level, since the rial plummeted against the dollar, as it is doing right now, gold has replaced the rial and the dollar as the local currency of choice.

Gold matters.

Just because the US punishes nations with sanctions, that does not mean those nations are left helpless, at that is because of gold.

We know how dire the situation is in Venezuela.

Venezuela is experiencing a hyperinflation, and they are also subject to US sanctions.

Venezuela had been refining gold in Switzerland, but because of US imposed sanctions, this is no longer an option, and so Venezuela has turned to Turkey for refining needs.

Yes, even in a socialist nation in the midst of a collapse, they have been able to purchase several tons of golds this year from their domestic mining operations.

Here’s more from RT:

The Central Bank of Venezuela will start refining gold in Turkey to avoid US sanctions –  penalties that deter the country from carrying out banking operations in Switzerland, according to the Venezuelan mining minister.

“This is an agreement established with Turkey and the Venezuelan central bank,” Victor Cano told journalists. “It’s being done by allied countries because imagine what would happen if we sent gold to Switzerland and we are told that it has to stay there because of sanctions.”

Venezuela’s central bank has been purchasing gold from small miners in the south of the country and then refining the precious metal to use as monetary gold. So far Caracas has been seeking to shore up its international reserves which have plunged as Venezuela struggles with the country’s worst-ever economic crisis.

Cano didn’t specify which Turkish firms are participating and how much gold would be refined by them. However, the minister said that Venezuela had bought 9.1 tons of gold from small miners in 2018.  After being refined in Turkey the gold is taken back to Venezuela to become part of the central bank’s portfolio of assets.

Venezuela is currently the subject to numerous sanctions imposed by Washington, which accuses the Venezuelan government of violating human rights and undermining democracy. US citizens are currently banned from buying newly-issued debt from Venezuela and its state-owned companies. Venezuelan President Nicolas Maduro called the penalties “economic war” against Caracas.

What is the point here?

The point is that nations are finding work-arounds to Washington’s strong-arming.

But there is a bigger point here – It’s a growing list of nations, and they are all stackers of gold.

And while the cause may be different for each nation, the effect is the same – stack more gold, get away from dollar-centric systems (de-dollarization), and develop alternative, parallel systems.

So let’s look at a few examples of this over the years:

Notice the theme here?

There is a powerful, growing block of nations, all over the world (China, India and Russia all have nukes), that are sick and tired of the United States strong-arming every nation on the planet into obedience and submission.

So they’re doing something about it.

This WGC graph still reflects only the 1st quarter of 2018:

We know what Russia was up to in April, and we just reported that the trend continued in May as Russia has now sold off nearly all of its US treasury holdings.

Nations have been actively preparing for years to dump the dollar and go in their own direction.

A direction which very likely includes gold & silver.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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