The falling price of oil is expected to cause the Venezuelan government to default on its debt.
The National Bank of Venezuela reaches out to Deutsche Bank (with severe problems of its own) for help to liquidate the country's gold reserves in an attempt to cover the February debt payment of $1.5 Billion due at the end of the month. Venezuela as approximately $15 Billion in the bank with 64% of this in gold bars, according to BUSINESS INSIDER'S Linette Lopez.
Lopez also reveals the government has additional debt payments of $9.5 Billion in the pipeline for the year.
The WALL STREET JOURNAL says Venezuela has teetered on the precipice of default since 2014, but has managed until now to pull through by selling bonds which have paid brave investors 17%. The question now is: will the cavalry arrive in time again?
As we wait to see what happens in the final reel, it is important to note that gold is the life raft buying the government time to deal with this crisis.
How big is your life raft? It's never too late to begin building your own gold reserve. Karatbars can help by offering gold in increments that fit your budget. It's up to you.
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