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<p>[QUOTE=&quot;InfleXion, post: 1251020, member: 29012&quot;]This is about $12 billion in gold, and if what Adrian Douglas says is true about 45 ounces being loaned out for every actual ounce, may require between $500 billion and $1.2 trillion in capital (other estimates at 100:1 instead of 45:1) to unwind the paper positions needed. While that it is quite substantial it&#039;s not undoable. So I think it will be able to be covered, and it probably won&#039;t single handedly impact the price nearly as much as if they weren&#039;t able to deliver, but it will have some impact from the banks needing to buy out some of their customers which would have the effect of selling into the market (potentially at magnitudes of 45 to 100 times greater than the 211 tons Chavez is asking for) and may actually decrease the price of gold (at least on paper). More importantly I think this could cause other nations to follow suit which would have much more far reaching implications. We closed our gold window in 1971, but apparently Europe&#039;s is still open. If and when it closes I would expect the price to rise accordingly. </p><p><br /></p><p>&nbsp; </p><p><br /></p><p>The 40 shipments would be for if the gold needed to be insured, but would come with a high risk of criminals trying to hijack the ships, and there aren&#039;t many who would be willing to insure it. So they might need to use their Navy, or potentially fly them in on jets which has been done before (link #1). Another alternative I&#039;ve heard suggested was to offer citizens a premium for bringing their gold in for exchange of owning gold in the Bank of England so that they could systematically acquire the gold without having to have it all shipped. No matter how you slice it they are going to be paying a high premium just to transfer it. Chavez wants to make sure he is getting the same gold he sent out, but I wouldn&#039;t be surprised if he ended up getting some of the 400 oz gold plated tungsten bars supposedly floating around (link #2). I am interested to see if he plans on drilling into any of them. </p><p><br /></p><p><a href="http://www.npr.org/2011/08/22/139859316/chavez-wants-gold-holdings-transferred-to-venezuela" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.npr.org/2011/08/22/139859316/chavez-wants-gold-holdings-transferred-to-venezuela" rel="nofollow">http://www.npr.org/2011/08/22/139859316/chavez-wants-gold-holdings-transferred-to-venezuela</a> </p><p><br /></p><p><a href="http://news.goldseek.com/GoldSeek/1258049769.php" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://news.goldseek.com/GoldSeek/1258049769.php" rel="nofollow">http://news.goldseek.com/GoldSeek/1258049769.php</a>[/QUOTE]</p><p><br /></p>

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