Bank Of England We Have A Problem: Venezuela Wants Its Gold Back

Using the time-tested, good old-fashioned “run around” stall tactic, the BOE has a lame excuse as to why it can’t give Venezuela its gold back just yet…

We have been following the latest round of sanctions on Venezuela closely.

The latest round of sanctions have to do with gold, and there are a couple ways to look at the situation.

First, the case can be made that in order to survive, Venezuela is “evading” US sanctions by purchasing food from Turkey with gold. I mean, the people are literally starving to death in Venezuela. Sure, it’s not a Yemen level of famine, but it is still a nightmare scenario filled with non-stop hunger pangs, mal-nurishment, malnutrition. and in some cases outright starvation. In fact, back in March it was reported that child starvation deaths are on the rise in Venezuela.

We covered that first way to look at Venezuela’s use of gold for food in this post.

Secondly, we can look at this situation as how the US government sees it.

The only thing the US government sees is a corrupt, anti-democratic, authoritarian style “regime” in that of Nicolas Maduro, and while seeing a regime that ultimately would be the wet dream of the likes of Trump’s National Security Advisor John Bolton to be overthrown and subject to American style regime change, the US government officially sees the corrupt uses of Venezuela’s gold for the purposes of enriching the corrupt government politicians.

Yeah, that was a mouthful, but that is, in essence, what the US is arguing.

And because of the way the US sees it, the US announced brand new sanctions on Venezuela last Thursday, specifically targeting the use of gold as money.

Fast forward to today, and now we learn that Venezuela wants its gold back that is being stored in Bank of England vaults.

Here’s some of the reporting from Reuters:

Maduro’s government is seeking to bring 14 tonnes of gold held in the Bank of England back to Venezuela, according to two public officials with direct knowledge of the operation, who asked not to be identified.

The Bank of England has sought to clarify what Venezuela wants to do with the gold, one of the officials said.


The plan has been held up for nearly two months due to difficulty in obtaining insurance for the shipment, needed to move a large gold cargo, one of the officials said.

“They are still trying to find insurance coverage, because the costs are high,” the official said.

We’ll stop there.

It looks like for now, the poor, starving nation of Venezuela is getting the good old-fashioned, time-tested stall tactic otherwise known as the “run-around”.

Having difficulty in obtaining insurance?


These are nations. Nations have armies. Armies can move gold via sea lanes, surrounded by the cover of gunships, and all the while using a well-communicated plan involving the nations of any territorial waters that are crossed during the mission.

Or they could also fly the bounty using military aircraft, again flying with military cover, and again, in a well choreographed (between the nations who’s airspace is involved) flight pattern that minimizes risk.

When push comes to shove, the logistics are really not that difficult to figure out, and in my experience, no military operates with “insurance”.

They just operate.

So if it is important enough for a nation to have a sovereign stack of gold, it is equally important for that nation to secure it using the best of the nation’s resources for security, and that would be the military.

So there must be something else going on.

And dare I say it?

I think I will.

Are physical gold supplies so strained that between the LBMA and the BOE there is literal difficulty in sourcing a very humble sovereign stack of fourteen tons of gold?

The Reuters article gets even more absurd than the question of insurance and logistics, and if you are so inclined, go ahead and read the entire article.

I, however, could not read through the entire article. It stinks to high-heaven, and something about this whole thing is rotten.

The UK (and the US for that matter) never wants to give back the gold held on behalf of other nations.

Which makes one question if the gold is even there in the first place.

Maybe the gold is not there?

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 Paul’s Twitter is @Paul_Eberhart.