Economy 02-11-2018

Economist doubts that US sanction to Venezuelan gold trade affects gold Price

The new measures of the United States against Venezuela to prevent the export of gold from that nation will hardly affect negatively the price of this metal, economist Tony Boza told Sputnik.

"I can lower the price of gold by the sanctions that (the US) impose on Venezuela, I do not think so, because the gold market is one of the most stable in the world," the expert told the agency.

On the contrary, Boza said, the measures could raise the price of gold, which currently stands at $ 39.43 per gram.

"The logic indicates that it could be that the gold goes up, in fact, it has 74 years that it does not go down, all the time it goes up, so it is very difficult for the gold to go down," he added.

The president of the USA, Donald Trump, announced sanctions to all the "illicit transactions" of the Government of Venezuela related to gold.

Trump's security adviser, John Bolton, explained that this decree seeks to prevent US citizens from associating with those who commit "fraudulent and corrupt transactions" with Venezuelan gold.

For the expert consulted by Sputnik, these measures reflect an act of "desperation" on the part of the US government, which, he said, faces a decline before the rise of powers such as China and Russia.

Boza explained that this despair of the White House is evident not only in the coercive measures applied to Venezuela, but in the tariff struggle, which he said he maintains with China and Russia, "countries that he fears for their growth and proximity to Latin America"

In addition, he rejected that the new sanctions of the White House will affect the economy of Venezuela, because in his opinion "gold will always have buyers" and, he stressed that, if some refuse to acquire it for fear of the US, there will be many nations and interested companies.

In this regard, he recalled that the Government of Venezuela put on sale a digital currency, which aims to rid the South American country of the restrictions established for trade by the United States through the dollar.

The measures announced by the United States Government are added to sanctions against high officials of the executive cabinet and President Nicolás Maduro himself.

Likewise, the White House sanctioned the bonds of the debt of the Venezuelan State and those of its main industry Petróleos de Venezuela SA (PDVSA) to prevent the financing of its debt and the acquisition of new loans, at least in the United States, which accuses Maduro to impose a dictatorial regime.

This is the second executive order issued by the US president against the Venezuelan government, the first was on March 19 when he signed a decree that prohibited any company or person from his country from trading with the petroleum crypto currency or another similar instrument created by the government. Executive of the Caribbean nation.

The Government of Venezuela launched a recovery plan for the economy that has as its central axis the increase in crude production, the export of gold and the petroleum cryptocurrency.

With these measures Maduro seeks to deal with hyperinflation, which according to the International Monetary Fund could close in 2019 by 10,000,000%.


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