"The earthshaking news for gold this past week was that Venezuela announced they would like to repatriate their gold from Europe and the US. Venezuela holds $11 billion is physical gold and is wanting to have it held in countries with more solid economics such as Brazil, Russia or China.

A few things strike me here. They must know or have a feeling the gold is not there. Whether it’s there or not I don’t know but I have a feeling it’s encumbered in some way shape or form and has likely been leased out at the minimum or has physically been removed at the far end.

I think that Venezuela will be pressured hard politically to give this repatriation idea up or they may simply be settled in cash, not gold. This is a dangerous game Hugo Chavez is playing and one which could literally blow the doors off of the gold price.

If it were to surface that central bank gold is not actually there, there would be a run on gold the likes of which I can’t even imagine. "

(GATA has been warning of this for some time now per Jim Sinclair)

Maybe this would finally boost the Junior mining stocks such as Silverado(my comments)