Many different types of people call ITM Trading to buy gold coins and gold bars. Some are doctors and lawyers and some are housewives and soldiers. Every type of American owns gold. One thing that many of these people have in common, however, is that they have reservations about buying gold or diversifying into physical precious metals. From time to time, though, ITM Trading will receive a call from someone who has lived through hyperinflation and currency collapse in Venezuela, and they have no hesitation when purchasing gold. People who have had this experience will tell you that owning gold in Venezuela is very wise. Not owning gold in Venezuela is a mistake.
Venezuela has an oil based economy. Oil is a natural resource that Venezuela has plenty of. Unfortunately for Venezuelans, economic sense is not necessarily something that their policy makers have plenty of. Venezuela’s economy is kind of an experiment. Venezuela is a prototypical communist state. The Venezuelan government owns the oil and the wells and the right to sell the oil. Profits from the sale of oil are used to fund social programs and help subsidize the costs of everyday living.
The problem with this economic system has proven to be that the Venezuelan government keeps growing more and more bloated. This, in turn, requires higher oil prices to support. After decades of fiscal bloat, Venezuela was ripe for economic disaster. When oil prices drop below a price that can sustain Venezuela’s social programs everyone suffers.
Suffering is not pretty, but suffering is real. This article, as well as other articles I have written about the ongoing Venezuelan currency collapse, are graphic. If strong mental and graphic images upset you intensely, you may not wish to read further. Venezuelans know that owning gold in Venezuela can make things just a bit easier in really tough times.
Owning Gold In Venezuela : Fiscal Barter.
Here is a story about a Utah man who ended up in a Venezuelan prison. Joshua Holt had been a Mormon missionary. In order to practice the Spanish he had learned as a missionary, he struck up an online friendship with a young Mormon woman in Caracas, Venezuela. As you may expect, they fell in love. Joshua flew to Caracas and married Thamara Caleno. This is where the story gets ugly.
While honeymooning together in a public housing complex, they were raided. Among the items found in the complex (think a small Motel 6) were an “assault” rifle and a hand grenade. Venezuela is not known for peace and harmony, although it is beautiful. Nonetheless, for some reason, the ownership of the weapons was attributed to Joshua. The Interior Minister of Venezuela has accused Joshua of being a hit man and an assassin in Venezuela to undermine and possibly kill Venezuelan President Nicolas Maduro.
Maduro is particularly unpopular at the moment and anything that takes the spotlight off of him or perhaps generates sympathy may be a welcome political spin.
Joshua recounts being taunted and tortured. Holt also says the gun and grenade were planted by police after he refused to be shaken down for a $10,000 bribe. Kidnapping, bribery, and murder are all too common in Venezuela.
Owning Gold In Venezuela : Bribes And Shakedowns.
While in prison Holt has suffered from bronchitis, kidney stones, and horrible itching. Twice a judge has approved medical care for Holt, but none has been given. To make matters horribly worse, Joshua’s new wife is also being held in the same prison as a conspirator. They see each other once a day when they fill pop bottles with the water they allowed for bathing.
Regardless of whether or not Joshua and Caleno are guilty, the truth is they are both suffering and languishing in a very poor prison system in a bankrupt and destitute country.
ITM Trading does not recommend or condone bribery, but ITM trading does recommend and condone survival. When economies break down, so does the rule of law. Having a few gold coins on hand may be the difference between freedom and false imprisonment. The best reasons for owning gold in Venezuela are perhaps not the same reasons you may be considering owning gold coins, but you will still have all of the same benefits should you need them.
Owning Gold In Venezuela : Fiscal Insurance.
Sure, Joshua could have paid the $10,000 bribe, if he had $10,000 cash. Chances are slim that a missionary has an extra $10,000 on him, especially after just paying for a wedding. When you factor in that the US makes it hard to travel with stacks of cash, the chances of finding a loaded visiting US missionary becomes even bleaker.
Perhaps the best possible way to pay the ransom would have been if the bride’s family had money and was able to “settle accounts” to gain the freedom of Joshua and Thamara.
Unfortunately, because of the economic and currency collapse going on in Venezuela, holders of the Venezuelan currency have been financially decimated. A few hundred bolivar used to buy an ounce of gold. Then it took a few thousand, then a hundred thousand, and then a million, then more.
The Venezuelan bolivar is crashing and the price of gold against that currency is skyrocketing. Whether a few small gold coins go to the officers to help them find the rightful owners of the gun and grenade, or whether gold coins help pay the “fines” at the police desk, gold will have more appeal than a stack of depreciating paper bills.
Owning Gold In Venezuela.
Owning gold in Venezuela makes sense. It also makes sense to own gold in the United States. The US is also in fiscally challenged times. The dollar has lost the vast majority of it’s purchasing power over the last several decades. If you are considering owning gold coins and gold bars, please pick up the phone and call an ITM Trading representative. 1.888.OWN.GOLD.