Caputo confirms Argentina has moved some of its gold overseas

[import export]

I wonder where Argentina moved it's gold reserves. They have to be careful as they have some judgements outstanding. These vulture funds probably will try to file claims against this.

Caputo confirms Argentina has moved some of its gold overseas - Buenos Aires Herald

The economy minister also said that Argentines would have to sell their U.S. dollars to pay taxes during an interview

buenosairesherald.com

 

[Vince]

Yep. I read the news earlier today. They will probably move it to London which they have done before under Macri.

Caputo confirms Argentina shipped gold abroad

Argentina's Economy Minister Luis Toto Caputo confirmed rumors from opposition lawmakers and union leaders indicating that the Central Bank (BCRA) was transferring gold from the country's coffers to foreign destinations. He explained that the move sought to generate a return on an otherwise...

en.mercopress.com

 

[Avocado]

So much for dollarization. Now Caputo is saying the peso will be dominant currency. That was a 180.

 

[Uncle Wong]

Did Argentina have any of its Gold reserves in the USA? This article from a few months ago said it did.

Trust in Tatters: Nations Withdraw Gold from US Amid Financial Fears

Amid growing apprehensions about the stability of the US financial system and international trust eroding over recent events, several nations have initiated the process of withdrawing their gold reserves stored within US borders. The exodus signals a broader sentiment of distrust in the US as a safe

www.linkedin.com

 

[Jenn]

But if they have gold in the US can't Burford Capital block to seize it? I'd think the USA would be the last place Argentina wants to move it's gold.

https://www.reuters.com/business/argentina-seeks-block-asset-seizure-help-satisfy-161-billion-judgment-2024-01-08/

 

[IrishLad]

Yep. I read the news earlier today. They will probably move it to London which they have done before under Macri.

Caputo confirms Argentina shipped gold abroad

Argentina's Economy Minister Luis Toto Caputo confirmed rumors from opposition lawmakers and union leaders indicating that the Central Bank (BCRA) was transferring gold from the country's coffers to foreign destinations. He explained that the move sought to generate a return on an otherwise...

en.mercopress.com

I'm not sure that the UK or Switzerland would cooperate in a seizure of Argentine properties or gold. There does seem to be some desperation which might be why even with intervention, the blue dollar rate still hasn't moved too much.

 

[Larry]

But if they have gold in the US can't Burford Capital block to seize it? I'd think the USA would be the last place Argentina wants to move it's gold.

https://www.reuters.com/business/argentina-seeks-block-asset-seizure-help-satisfy-161-billion-judgment-2024-01-08/

This is bad news. Argentina's gold is best in it's own vaults. UK has been known to seize gold. Look at Venezuela.

https://www.reuters.com/markets/commodities/venezuela-loses-uk-appeal-long-running-gold-reserves-battle-2023-06-30/

 

[Betsy Ross]

I wouldn't look at this as a positive no matter how much they want to spin this as positive. Especially if it took a request by Unions to get it announced. I don't know enough about if this gold can be seized by these vulture funds but Argentina probably needs to be careful with that with the courts.

 

[Vero]

Could this be a precursor for Argentina trying to sell their gold reserve?

 

[Finance Prof]

Argentina has to be careful as it's lost cases in Europe as well. The London Court of Appeals has also ruled that Argentina must pay 1.3 Billion Euros.

GDP coupon case: Argentina loses US$1.5 bn appeal in London - Buenos Aires Herald

The case will be closed unless Argentina secures permission to appeal to the Supreme Court

buenosairesherald.com

Some lawyers are saying that plaintiffs in these other cases can't legally seize the gold outside of Argentina because the lawsuits are against the Republic of Argentina but the Central Bank of Argentina owns the gold.

I'm not sure I would be willing to bet that the gold can't be seized. Hedge funds so far have been successful. They most likely will file requests for the gold. It would be a disaster if Argentina moved the gold outside of Argentina and then it ended up getting seized for these judgements it owes.

 

[Blockchain]

Argentina has to be careful as it's lost cases in Europe as well. The London Court of Appeals has also ruled that Argentina must pay 1.3 Billion Euros.

GDP coupon case: Argentina loses US$1.5 bn appeal in London - Buenos Aires Herald

The case will be closed unless Argentina secures permission to appeal to the Supreme Court

buenosairesherald.com

Some lawyers are saying that plaintiffs in these other cases can't legally seize the gold outside of Argentina because the lawsuits are against the Republic of Argentina but the Central Bank of Argentina owns the gold.

I'm not sure I would be willing to bet that the gold can't be seized. Hedge funds so far have been successful. They most likely will file requests for the gold. It would be a disaster if Argentina moved the gold outside of Argentina and then it ended up getting seized for these judgements it owes.

Yikes! I read that case where Argentina got an old yacht seized a few years ago. I'm not sure of the distinction of Argentina vs. Central Bank. It all seems to Argentina to me. That would be quite a blunder if Argentina's gold gets seized. I'd think they would want to keep all this gold inside of Argentina.

It it got seized, won't Caputo and Milei look like idiots?

 

[MikeYoung]

I wouldn't look at this as a positive no matter how much they want to spin this as positive. Especially if it took a request by Unions to get it announced. I don't know enough about if this gold can be seized by these vulture funds but Argentina probably needs to be careful with that with the courts.

It sounds like you are correct to worry about the gold getting seized. This is a good article that talks about it. I wonder why the government is not more transparent about this? Seems like they have to respond within 30 days.

The mystery of Argentina’s gold: Milei admits that it was transferred abroad, without specifying the quantities or destination

While the government acknowledges that gold reserves have been sent outside the country, there’s no official information available regarding the purpose of the operation. The gold is now exposed to the risk of being seized, due to long-standing claims against Argentina made by foreign creditors

english.elpais.com

 

[Vince]

It sounds like you are correct to worry about the gold getting seized. This is a good article that talks about it. I wonder why the government is not more transparent about this? Seems like they have to respond within 30 days.

The mystery of Argentina’s gold: Milei admits that it was transferred abroad, without specifying the quantities or destination

While the government acknowledges that gold reserves have been sent outside the country, there’s no official information available regarding the purpose of the operation. The gold is now exposed to the risk of being seized, due to long-standing claims against Argentina made by foreign creditors

english.elpais.com

I saw that article too. I don't think the risk/reward is worth it. Caputo's explanation doesn't make sense about earning interest income. It sounds like Argentina is planning something else with this that they don't want to disclose. If this gold ends up getting seized to pay Buford, they are going to look like idiots and Caputo will probably have to resign.

 

[Finance Prof]

I saw that article too. I don't think the risk/reward is worth it. Caputo's explanation doesn't make sense about earning interest income. It sounds like Argentina is planning something else with this that they don't want to disclose. If this gold ends up getting seized to pay Buford, they are going to look like idiots and Caputo will probably have to resign.

Argentina probably can't be transparent about where it is exactly. All of the people that are owed funds can tie up this in courts. It will be interesting where the Gold is and ultimately what happens to it.

 

[Betsy Ross]

Argentina probably can't be transparent about where it is exactly. All of the people that are owed funds can tie up this in courts. It will be interesting where the Gold is and ultimately what happens to it.

Regardless of what they lined it, there will be arguments from the Left that talk about lack of transparency. I just hope this does now blow up in their face. No room for mistakes of this magnitude right now.

 

[fetch rover]

Regardless of what they lined it, there will be arguments from the Left that talk about lack of transparency. I just hope this does now blow up in their face. No room for mistakes of this magnitude right now.

Caputo is a smart businessman. My husband worked with Mr. Caputo while we lived in Buenos Aires. I am sure that risk/reward were thought of ahead of time.

 

[RN in BA]

Caputo is a smart businessman. My husband worked with Mr. Caputo while we lived in Buenos Aires. I am sure that risk/reward were thought of ahead of time.

Regardless of how intelligent he might be, I'm sure the company that won the $16 billion dollar lawsuit is following along very closely!

 

[Wally]

I love how all the members are ahead of the curve in news. Seems like everyone has the same fear about gold getting seized.

Argentina’s Milei moves sovereign gold abroad, raising concerns about seizure – El Pais

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

kitco.com

 

[Avocado]

Bye bye Argentina gold bars.

https://twitter.com/x/status/1825522422981750833

 

[Cellular Shill]

Another article about the moving of the Gold.

Central Bank of Argentina confirms overseas gold transfer, possibly as collateral for loans

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

www.kitco.com