Venezuela thought it was a good idea to have their reserves in gold bullion ( 68% of it) to balance with their petroleum output/reserves. Like many bullion hoarders with similar holdings who finds their main revenue becoming limited, but still have debts to pay ( in USD) it is a disaster in the making. Now if it was only 5-10% gold, they would still be in a problem, but it seems they didn't expect the strengthening USD at the same time as decreasing petroleum demand/sales, and a decrease in gold pricing~ a dark grey swan event at least. http://www.bloomberg.com/news/artic...nezuela-now-has-a-big-gold-problem?cmpid=yhoo
Good read Jim . Goes to show that you can't rely on gold to back today's massive economies , even one as small as Venezuela's .
