Venezuela is taking an interesting step to help reverse its economic doldrums. The nation has been suffering from financial malaise for quite some time. The country also sits on top of a significant amount of precious metal reserves.
The government of Venezuela is hoping to gain a certification from the United Nations according to a Linked In post by Norka Luque to help ensure the country receives fair and equitable compensation for the sale of these assets. The United Nation becomes involved to help certify the distribution of the precious metals is not funding anything illegal.
Venezuelan citizens like Norka, could benefit from the export of precious metals, and the country does need to find an alternative to its once prosperous oil exports. The price of oil is currently very low. The oil market has experienced a massive glut due to increased productivity of oil output from Saudi Arabia. Iran is likely to boost its exports as well. And then there is the fracking of shale oil in the United States further contributing to the glut.
The current stockpile of gold reserves alone is worth around $200 billion. If the world’s currencies declined due to a recession, that stockpile of gold could end up being worth even more. Right now, Venezuela’s various precious metals and other assets are not being leveraged to their full potential.