Gold Flees Venezuela, Moves into Switzerland - Nathan McDonald

February 25, 2016

Hugo Chavez, the now deceased long-term political leader of Venezuela, painstakingly fought to get his country's gold back into his and his people’s hands. He knew that the fiat system was rotten to its core and that gold was the one true money.

Despite these hard efforts, the current political party that is running Venezuela obviously couldn't care less about gold and the true wealth of its people. Granted, Venezuela is going through some incredibly difficult financial times, but is this a reason to liquidate their gold? No, I think not; if anything, this is the very last true asset that they should part with.

The true severity of the situation in Venezuela is highlighted by the current fiasco that is their CDS market, which is hovering around the same level that Greece's were three months before they defaulted on their IMF and EU lenders.

The liquidation of gold out of Venezuela is another alarm bell that cannot be ignored, especially given the rate at which gold is fleeing the country.

A recent report shows that Switzerland imported a stunning 35.8 tonnes of gold from Venezuela during the month of January alone. This mass exodus is part of the plan in which Venezuela intends to liquidate its gold to Deutsche Bank.

When a country gets down to the nitty gritty and they get to the point that Venezuela is now reaching, they will sell everything they can, including the kitchen sink.

This story has played out countless times in the past, with the most recent drama being the never-ending drama that we have witnessed in Greece.

Sadly for Venezuela, they are not part of the Euro and not considered so vital that they cannot be allowed to go bust without causing massive ramifications for the rest of the Western banking world. Regardless, a default by Venezuela would not be good for anyone and would have consequences around the world.

This story only highlights the precarious situation that the world now finds itself in. Things are not getting better, despite what the mainstream media and the talking heads would have you believe. No; the world is now, more than ever, in a dangerous dance that it is finding impossible to escape from.

Now more than ever, you need to be getting your financial house in order – taking the required steps, such as diversifying into gold and silver, that will be needed to weather the upcoming financial crisis that is almost guaranteed at this point.