Allstate Journal

Hugo Chavez to Nationalize Venezuela Gold Industry

New York, August 18 ( – After the nationalization of Venezuela’s oil, metals and cement industries, President Hugo Chavez announced that a decree was being prepared for nationalization of the gold industry and to put an end to the exploitation of the country’s gold and coltan reserves by illegal miners. He also announced on Wednesday that he will be moving Venezuela’s the country’s international bullion and cash reserves out of the Western countries and shifting them to his political allies like Russia, China, and Brazil.

This move by the socialist leader, who has now been diagnosed with cancer, has been initiated in view of the upcoming elections. He had been preparing for this ultimate step of nationalization by limiting the amount of gold that could be exported by the foreign companies engaged in running the gold industry. “I’m going to approve a law to begin taking the gold areas, and there I count on (the military) because there continues to be anarchy, mafias, smuggling,” he said. Hugo Chavez also said that with nationalization of the gold industry, gold will be converted into international reserves that will have immense value due to the unprecedented increase in value of gold in recent times.

This step of nationalization and moving the international reserves to other countries will reduce Venezuela’s reliance on the US dollar as the preferred global reserve currency.