Venezuela's Hugo Chavez Will Become Billions Wealthier

The increasing price of Gold has captured Hugo Chavez’s attention. Chavez, President of Venezuela announced earlier this year that he will nationalize the Country’s gold mining industry.

Chavez indicates that the gold mining sector is currently not in the control of the government but rather under the control of the mafia and gold smugglers.

Hugo Chavez President of Venezuela to Nationalize Gold

This announcement came after the Venezuelan Government transferred 211 tons of gold to its own Central Banks in Caracas. Initially, the Venezuelan government had its 211 tons of gold stored in European Bank vaults. Venezuela’s 211 tons of gold are currently estimated to be worth about $11 Billion. Once the 211 tons are moved to Caracas, it will join an additional 154 other tons that the country of Venezuela already owns and has been storing in its own country.

The country also plans to diversify some of its own portfolio in to additional gold. This and the announcement of nationalizing its gold, caused the price of gold to increase days after.

Although, Venezuela is considered a small player in the gold market sector compared to other countries. It does have the largest gold reserves of any other Latin American country.

Chavez mentioned that Venezuela is also rich in other industries besides oil. Referring to gold being one of them and he intends to increase production of it now that he has the authority to do it and now that prices are significantly high. Once Venezuela nationalizes gold it should add Billions of dollars more to Venezuela under the direction of Hugo Chavez.