Gold is Keeping Venezuela Afloat

For millennia, governments and investors have relied upon gold as a dependable store of value. Today, cash-strapped Venezuela is living proof of this truism.

Invest in gold today.

Mismanagement and corruption under President Nicolas Maduro have crippled the country’s economy, even though it has tremendous oil reserves. Venezuela’s government reportedly held less than $1 billion in cash in January, prior to the coronavirus outbreak. To remain afloat, the country has been relying upon its gold holdings.

After suing the Bank of England to release 31 metric tons of gold Venezuela holds in the Bank’s vaults, Caracas has reached agreement with the United Nations Development Programme to use some of the gold to purchase food and medicine. The Bank of England, which stores gold for many countries, had frozen Venezuela’s holdings because Britain does not recognize Maduro as Venezuela’s legitimate president due to allegations that he rigged his 2018 re-election.

Venezuela has relied upon gold in its own vaults to purchase desperately needed equipment from Iran to repair gasoline refineries. Government workers in Caracas recently loaded nine tons of gold, worth half-a-billion dollars, onto Iranian jets in exchange for equipment and gasoline additives. Annual inflation in Venezuela is more than 3000 percent, so the country’s gold holdings are among its few assets retaining value. Venezuela’s gold holdings, 161 tons according to the World Gold Council, account for 81 percent of the country’s foreign reserves, a higher percentage than any other nation.

Invest in gold today.