CNN mentioned Kadaffy's Gold

[Horn]

Said it would be the main way for him to finance himself thru the hard times ahead.

[Horn]

Related:

http://www.npr.org/blogs/money/2011/03/22/134763011/gadhafis-gold

Countries around the world have been freezing Moammar Gadhafi's assets, and trying to choke off the flow of money to Libya's state oil company and sovereign wealth fund.

But there's one asset they can't touch: the 143.8 tons of gold in Libya's central bank, which is controlled by Gadhafi. Today's FT describes the $6.5 billion stash as "enough to pay a small army of mercenaries for months or even years."


This is one of the big reasons why some people like physical gold: It's this valuable thing that you can actually hold in your hand. Unlike savings and brokerage accounts, gold can't disappear with a few taps on a keyboard.

But gold's sheer physical bulk can also be something of a hassle. The FT reports:

Libya's gold reserves may provide Col Gaddafi with a lifeline – if he can sell them. To raise large amounts of money, bankers said, Col Gaddafi would have to transport the bullion out of Libya.

Before violence broke out the gold was stored at the central bank in Tripoli. But since then it may have been moved to another location, such as the southern city of Sebha – within reach of the borders with Chad and Niger.

[ShortJohnSilver]

1 ton can fit on a small skid - with the right pallet racks figure 8 skids can be placed vertically (each skid would only be 2-3 feet high).

So basically about $10K worth of pallet racks and space for 20 skids on the floor, plus space for a fork truck to get around, will get you everything needed to store and handle billions of $ worth of gold. Not really that inconvenient.

[gunDriller]

yes, i saw that - they called him a "Gold Bug".

i don't yet believe that the MSM is trying to paint PM owners as Qaddafi-like ... but sometimes it does seem that - that that is what they are trying to do.

[Sparky]

Well, this article is good advertisement for gold as the go-to asset to own in order to avoid being strong-armed by external forces. And for the same reason, I'll betcha he holds a whole bunch of US$100 bills, which also work well until the global paper fiat system experience a dislocation.

"If you don't hold it, you don't own it." -Moammar Gadhafi

[Horn]

Libyan gold reserves believed to be within world's top 25

Mar 22, 2011 08:40 AM
0
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While the international community has administered sanctions and asset freezes against Libya, the nation's gold reserves are believed to be among the world's 25 biggest, according to the International Monetary Fund.

But, the Financial Times reports, countries, banks and trading houses are likely to be apprehensive about associating with the dictatorial regime, thus Muammar Gadhafi will run into trouble liquidating the assets should the desperate need arise.

"Physical trading houses are now quite reluctant to deal with countries that have been involved with conflict - they don't know who's on the end of the trade," one banker told the publication.

The central bank in Tripoli might no longer hold the 143-plus tons of gold, the FT reports. But the assets are believed to still be in Libya as opposed to being locked away in vaults in London, New York or Switzerland as other nations prefer. Gadhafi can only use those reserves as a last resort if he can liquidate them, according to analysts.

"If a country like Libya wants to make their gold liquid it would probably be in the form of a swap - whether for arms, food or cash," Walter de Wet, head of commodities research at Standard Bank, told the publication.

http://www.danielstrading.com/resources/news/Futures-Market-News/Libyan-gold-reserves-believed-to-be-within-world-s-top-25_800467863/

[mick silver]

i do see why he couldnt just sell some oil someone in this world would give him what he needs to fight with for oil

[Horn]

i do see why he couldnt just sell some oil someone in this world would give him what he needs to fight with for oil


I've heard most of the oil infrastructure is over on the east side away from Tripoli, rebels are more in control of it.

Also, Oil purchases are fully controlled by the cartel.


U.S. and European governments have frozen billions of dollars in Libyan assets, as sanctions have hit the central bank, sovereign wealth fund, and state oil company.

But Libya's gold reserves may provide Gadhafi with a lifeline -- if he can sell them. To raise large amounts of money, bankers said, Gadhafi would have to transport the bullion out of Libya.

Before violence broke out the gold was stored at the central bank in Tripoli. But since then it may have been moved to another location, such as the southern city of Sebha -- within reach of the borders with Chad and Niger.

The political turbulence in the Middle East – besides boosting the price of gold to a record $1,444 a troy ounce -- has highlighted the property that has for centuries made gold so appealing to criminals, investors and dictators alike: It does not rely on a government for its value.

Following the revolution in Egypt, the country banned gold exports for four months in order to prevent officials of the former government from moving their wealth abroad.

At the same time, Iran has been quietly stocking up on gold in recent years, in an apparent attempt to shift away from the U.S. dollar and thus protect its reserves from risk of seizure. Other significant buyers of gold include China, Russia, and India.

No international bank or trading house is likely to buy gold with any hint of a link to the Libyan regime, bankers said. "Physical trading houses are now quite reluctant to deal with countries that have been involved with conflict -- they don't know who's on the end of the trade," said one banker.

But Gadhafi could transport the gold to Chad or Niger, where the gold could be swapped for currency transferred into a bank owned by the Libyan Foreign Bank -- a branch of the central bank.

"If a country like Libya wants to make its gold liquid, it would probably be in the form of a swap -- whether for arms, food, or cash," said Walter de Wet, head of commodities research at Standard Bank.

In addition to the gold reserves, Gadhafi may also have hoarded some cash from oil sales outside of the traditional channels.

http://www.gata.org/node/9725

[Twisted Titan]

Countries around the world have been freezing Moammar Gadhafi's assets, and trying to choke off the flow of money to Libya's state oil company and sovereign wealth fund.

But there's one asset they can't touch: the 143.8 tons of gold in Libya's central bank, which is controlled by Gadhafi.


Thats all you need to know