Recently, GreatGameInternational revealed the real reason why Venezuela is burning and why suddenly everyone from Elon Musk to the CIA and the entire Anglo-American establishment became the guardians of democracy – the Secret Gold War. Maybe, the Venezuelans could learn a thing or two from Argentina in how you can keep your nation safe. This tip was actually provided by one of the insightful reader from our Telegram group. Argentina’s Central Bank has around two million troy ounces of gold, worth about $4.5 billion. Like a magic trick, it vanished overnight. But recently, everyone’s been asking: where did the gold go? Did it leave the country, or are some still here while the rest is overseas? Official answers have been vague. But you know what’s going on, don’t you?

Far-right President Javier Milei’s administration admitted that some gold was moved abroad but didn’t say how much, where it went, or why. The Central Bank has been silent too. This move has sparked suspicion and speculation, especially during a time of financial instability when the government needs to build up its reserves. There are also fears that the gold could be seized due to long-standing legal disputes with foreign creditors.

The news didn’t come from the government or the Central Bank but from a bank workers’ union called La Bancaria. Its leader, Sergio Palazzo, who is also a left-wing legislator, asked the Central Bank if any gold was sent abroad in June. He wanted to know specific dates, amounts, destinations, procedures, and the officials involved. The Central Bank has 30 days to respond but hasn’t yet. However, last Friday, Economy Minister Luis Caputo confirmed the transfer, saying it’s better to have the gold abroad to earn interest. He suggested it might be in London or Basel.

Caputo argued that gold stored outside the country can generate returns, but economists warn that the insurance costs might outweigh the benefits. President Milei hinted that the gold might be used as collateral for a loan to pay foreign debt, suggesting Argentina is running low on liquid assets and must use its gold reserves.

The opposition, including the center-left Unión por la Patria and the Buenos Aires provincial government, criticized the lack of transparency and demanded explanations. They’re concerned about the risks, like the potential seizure of the gold while it’s in transit or at a foreign bank.

Some economists support the move, saying it’s normal to use gold reserves for short-term loans or sell them for dollars. Others disagree, pointing out that many countries are keeping their gold at home due to global uncertainties. Former Economy Minister Martín Guzmán likened using gold for loans to pawning your grandmother’s jewelry, warning that if the loan isn’t repaid, the gold could be lost.

Argentina faces numerous legal battles with international creditors, some dating back decades. These creditors could try to seize the gold, just like in 2012 when Argentina’s frigate Libertad was held in Ghana over a debt dispute. Venezuela faced a similar issue in 2019 when the Bank of England blocked access to its gold.

Technically, central bank reserves shouldn’t be seized, but legal fights are long and costly. Economist Jorge Carrera noted that it’s important for the Central Bank to act independently from the government to protect its assets. Recent statements by Milei and his minister haven’t helped, especially since the Central Bank hasn’t officially confirmed anything. Adding to the intrigue, until December 2023, Minister Caputo and Central Bank head Santiago Bausili were partners in a consulting firm.

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