Gold's Role In Venezuela (w/ Daniel Lansberg-Rodriguez)

Daniel Lansberg-Rodriguez, adjunct lecturer at Kellogg School of Management, discusses gold’s role in Venezuela. Taking a look at the relationship between Venezuela, gold, and the rest of the world, Lansberg-Rodriguez walks through the domestic and international concerns of Maduro’s Venezuela. This video is excerpted from a piece published on Real Vision on November 28, 2018 entitled “A Closer Look at Venezuela.”

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A collection of interviews and documentaries focusing in on the famous store of value. The series takes a 360-degree view of the precious metal by examining gold's role in history and its proper place in modern investment portfolios. It interviews experts in diverse fields including mining, investment management and bullion storage.

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Gold's Role In Venezuela (w/ Daniel Lansberg-Rodriguez)
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Transcript:
For the full transcript: https://rvtv.io/2Qi996R
So gold is a very interesting issue in Venezuela. Venezuela has
gold. They have never really gotten production truly online formally. A similar case to diamonds,
actually, which Venezuela also has, but which it's never-- I think Chavez had a fight with the
Kimberley people in 2008, and Venezuela got decertified, and has remained so. That doesn't
mean that there hasn't been an industrialisation-- a very powerful industrialization. If you go on
Google Maps now, and look at areas of Venezuela, where these resources are present, you can
actually see mines. But they're not formal mines, they're informal mines.
The government is known well-- is widely presumed to take a cut of this. And that's something that
has facilitated the diversification, the de facto diversification of its income. Because when people
tell you that 98%-- or 99% now-- of Venezuela's exports are oil, that's not technically true. 99% of
the exports that Venezuela-- let's say, legitimately exports-- are oil. But on top of that, you have to
include drugs, most of which are not grown in Venezuela, but which pass through there. It
includes oil, it includes diamonds, many of which were smuggled out at obviously, a lower price,
because it's smuggled. But the government gets a big cut of it.
And unlike conventional private sector, you can basically pick who's getting them. So whoever is
being allowed access to these sorts of illicit resources will for survival sake, be a lot more
amenable to the government, regardless of how they attempt to interfere or else risk losing their
assets.
That said, the other place that gold comes into play strongly is in terms of the national reserves,
which should be booming. And which even an unresponsive oil country would probably have
managed to save a significant amount during the colossal oil bonanza of the 2000s and early
2010s. Venezuela does not have that. They have a bit more of a kitchen sink apparatus as the
Federal Reserve. So you have less than $10 billion US in there, most of it in liquid, much of it in
gold. And for a while, there was a lot of speculation about whether the gold actually existed until
they invited a well-known Venezuelan economist living abroad to actually go look at the gold,
and actually certify that it was there for investors.

Видео Gold's Role In Venezuela (w/ Daniel Lansberg-Rodriguez) канала Real Vision