
A standardized gold ingot of 20 grams. Photo: File photo.
Orinoco Tribune – News and opinion pieces about Venezuela and beyond
From Venezuela and made by Venezuelan Chavistas
A standardized gold ingot of 20 grams. Photo: File photo.
The phenomenon of gold repatriation is currently growing, particularly among nations of the Global South. The wealth-backed metal that many central banks and sovereign wealth funds keep in vaults offshore, be it in London or in other Western states, is safer at home, amid rising concerns about “sanctions,” illegal seizures and security.
This insecurity has grown due to the sanctions and blocking of assets enacted against Russia by the United States and the European Union, following NATO provocation and the subsequent Russian invasion of Ukraine. The Eurasian country had almost half its foreign currency and gold reservesâvalued at $650 billionâfrozen. There are already numerous experiences of such seizures that precede this, such as the illegal seizure of the gold that Venezuela has in the Bank of England.
New Developments Regarding Venezuela’s Gold Stolen by Bank of England
According to a survey by Invesco, an independent US investment management company based in Atlanta, there are two central concerns underlying the interest in increasing gold reserves, in addition to repatriating gold if it is held in other banks.
Some 85% of the 85 sovereign wealth funds and 57 central banks surveyed indicated that they believe that inflation will be higher in the next decade than in the previous one. They also showed concern about rising geopolitical tensions and the trajectory of the US dollar. As a result, central bankers and sovereign wealth fund managers are “fundamentally” rethinking their strategies of relying on depositing gold in the US and in Europe.
Almost all respondents believe that geopolitical tensions and inflation are clear signs that it is time to return the money to their own central banks. Faced with the uncertainty generated by the instability of the dollar as a risk asset, in particular for countries that are friendly with the United States, many prefer to use gold to back up their wealth, and the blockade of Russia serves as an experience to avoid repeating.
Translation: Orinoco Tribune
OT/JRE/AU
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