Gold, politics, and Venezuela

As GATA has alleged for over a decade, the vaults of central banks and treasuries are devoid of unencumbered gold, if it even exists at all.  The emperor(s) have no clothes, and Venezuela may have started a mad dash for sovereign nations to repatriate their physical gold reserves.  Conspiracy theories aren't necessarily fictitious, folks.  We're all about to find out the hard way. 

http://www.goldmoney.com/gold-research/gold-politics-and-venezuela.html?gmrefcode=gata

Chavez is not just recalling his country’s gold to protect its integrity, he is waging an idealist’s war against the capitalist system and the US in particular. This is why he has threatened to move gold and foreign reserves to the countries he says he trusts, principally Russia and China, and why he is proposing to nationalise Venezuela’s gold mines.

He has picked the capitalist system’s weakest point. He has been told by his central bank that the Fed, the BoE and the Bank for International Settlements hold gold for the whole central banking community in the main trading centres, and that much of this gold exists only as a ledger entry and is not backed by physical metal. Whether or not Venezuela’s gold is held in these fractionally-backed sight accounts, or in earmarked accounts where the gold is held separately, we do not actually know; but there is little doubt that this move is designed to encourage other central banks to demand that their gold is also repatriated.