Business

A seven-year standoff over Venezuelan gold nears its end

Published

56 minutes ago

20 September 2026

A seven-year standoff over Venezuelan gold nears its end

Gold is the asset people buy when they have stopped believing in promises. Then most of them hand it to a bank in another country for safekeeping, which is itself a promise.

That arrangement is older than most of the world’s central banks. The Bank of England has provided gold custody services to developing nations for decades, according to Reuters, and it usually works for the simple reason that nobody involved has any incentive to argue about it.

Custody is boring. It stays boring right up until two governments claim the same account.

Then the metal in the vault ceases to be a reserve asset and becomes a legal exhibit. It does not move, and it does not get sold.

It sits in a basement in London, earning nothing and settling nothing, while lawyers on two continents argue over whose signature counts on the paperwork.

That is exactly what happened to 31 metric tons of Venezuelan bullion, and after seven years, the standoff is nearing an end.

Venezuela’s government and its opposition are near an agreement to move the central bank’s gold, worth about $4 billion, from the Bank of England to the Federal Reserve Bank of New York, the Financial Times reported on Friday, Sept. 18.

Reuters said it could not immediately verify the report, which cited four people familiar with the discussions.

Venezuela and its opposition near a deal to shift 31 tons of central bank gold out of London.shomos uddin / Getty Images

Why the Bank of England stopped moving Venezuela’s gold

The freeze started with a shipment request. Venezuela asked for part of its bullion back in 2018, and the Bank of England has withheld the roughly 31 metric tons it holds ever since, citing its non-recognition of the legitimacy of then-President Nicolas Maduro’s government, according to Reuters.

More Gold & Silver:

Britain recognized opposition leader Juan Guaido in February 2019. Two rival boards of Venezuela’s central bank then spent years sending the Bank of England conflicting instructions about the same bars.

The fight reached Britain’s highest court in December 2021. British courts were bound to accept that the government does not recognize Maduro as president “for any purpose,” the Supreme Court said in a press release, according to Al Jazeera.

That ruling handed the gold to nobody. It pushed the remaining questions back down to the Commercial Court, and the bars stayed put.

What the proposed gold transfer would actually change

The deal now on the table does not set the gold free. It changes the metal’s address and its job.

Under the terms being discussed, the interim government of Delcy Rodriguez would gain legal control of the holdings but would not be able to sell them immediately, according to Reuters. The reserves could instead be pledged as collateral for government borrowing, including money for reconstruction after June’s twin earthquakes.

The Bank of England is not moving anything on the strength of a newspaper report. It “is not in a position to act until there is a further order from the UK Court on who has legal authority over the account,” the bank said in response to a Reuters query.

The British Foreign Office kept its distance, too. The government is “not a party in the legal case to determine who should have control of Venezuelan gold,” a spokesperson said, according to Reuters.

Washington’s appetite for Venezuelan metal is not hypothetical. “We are getting a lot from Venezuela. We are getting gold,” Treasury Secretary Scott Bessent said in July, as TheStreet reported.

HOW THE STANDOFF GOT HERE

2018: The Bank of England begins withholding 31 metric tons after Venezuela asks for its bullion back, according to Reuters.
December 2021: Britain’s Supreme Court rules that UK courts must accept the government’s non-recognition of Maduro, according to Al Jazeera.
January 2026: Maduro is captured in a U.S. raid, as TheStreet reported at the time.
Sept. 18, 2026: The Financial Times reports the two sides are close to a transfer deal, according to Reuters.

What 31 tons of gold is worth to a broken economy

I ran the math myself rather than trust the round number. Thirty-one metric tons comes to roughly 996,700 troy ounces, and at Sept. 18’s spot price near $4,385 an ounce, that is about $4.37 billion, according to Trading Economics.

Spread across Venezuela’s population, the hoard amounts to something like $140 per person. Measured against an economy the International Monetary Fund (IMF) sizes at roughly $111 billion this year, it is close to four percent of national output, sitting in a foreign basement.

That is real money in a country where consumer prices are projected to climb 387.4% in 2026, according to the IMF.

Here is the part that stopped me during my analysis of the case record. The same bars were valued at about $1.95 billion when the dispute reached the UK Supreme Court, according to a judgment summary published by the European Association of Private International Law.

Spot gold then ran up 64% in 2025 alone, its best year since 1979, Reuters reported. Getting locked out of the vault during the strongest gold market in four decades was, in pure dollar terms, the most profitable thing that could have happened to Venezuela’s balance sheet. The lawyers did what no reserve manager would have had the nerve to do, which was nothing.

What the London standoff teaches gold investors

Gold’s whole pitch is that it does not depend on anyone else’s solvency. Seven years in a London basement exposed the fine print, because custody still depends on somebody’s politics.

Most American investors will never be caught in a recognition dispute. They do, however, own gold the way Caracas owned it, as a claim on metal sitting with a custodian bank, which is how physically backed funds such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are built.

That structure is sound. It is also a decision I would rather see investors make deliberately than inherit by accident.

For the gold market itself, the read is narrow. Roughly 31 tons is a rounding error against annual global demand, and the proposed deal blocks a quick sale, so this is not the setup for a supply squeeze.

The borrowing is the part worth watching. Gold that becomes collateral eventually becomes a payment stream for somebody, and the lenders circling Venezuela’s reconstruction will want terms they can enforce. A vault in New York is far easier to lend against than a vault in litigation, which is the entire reason the address matters.

Seven years of arguing produced a pile of metal worth more than twice what everyone was fighting over. The next seven will decide who gets paid out of it.

This story was originally published by TheStreet on Sep 20, 2026, where it first appeared in the Markets section. Add TheStreet as a Preferred Source by clicking here.

Business

Invesco Charter Fund Q2 2026 Commentary

Published

1 minute ago

20 September 2026

NewsAdmin

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Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Invesco does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax professional for information concerning their individual situation. The opinions expressed are those of the authors, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE All data provided by Invesco unless otherwise noted. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products and collective trust funds. Invesco Advisers, Inc. and other affiliated investment advisers mentioned provide investment advisory services and do not sell securities. Invesco Unit Investment Trusts are distributed by the sponsor, Invesco Capital Markets, Inc., and broker-dealers including Invesco Distributors, Inc. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Each entity is an indirect, wholly owned subsidiary of Invesco Ltd. ©2015 Invesco Ltd. All rights reserved.

Business

Canada’s Carney calls for stronger ties with France in face of new global threats

Published

8 minutes ago

20 September 2026

NewsAdmin

Canada’s Carney calls for stronger ties with France in face of new global threats

Business

Nokia: Back To The Buy Zone (Rating Upgrade)

Published

15 minutes ago

20 September 2026

NewsAdmin

I’m a Portfolio manager (flexible equity funds and private clients), fundamental equity research, macro and geopolitical strategy.Over 10 years across global markets, managing multi-asset strategies and equity portfolios at a European asset manager.I combine top-down macro, bottom-up stock selection and real-time positioning (Bloomberg, models, data).I focus on earnings, tech disruption, policy shifts and capital flows — to identify mispriced opportunities before the market.On Seeking Alpha I share high-conviction ideas, contrarian views and deep breakdowns of both growth and value names.For more insights: follow me on X @AgarCapital

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPX, NDX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Business

QXO Trades Below Book Value, And The Rate Hike May Work In Its Favor

Published

1 hour ago

20 September 2026

NewsAdmin

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QXO Trades Below Book Value, And The Rate Hike May Work In Its Favor

Business

Wall Street Brunch: U.S.-China Summit In Spotlight (NYSEARCA:SPY)

Published

1 hour ago

20 September 2026

NewsAdmin

Commodities: Oil Market In Wait-And-See Mode Ahead Of Trump-Xi Meeting

National flags of China and the United States waving in the wind on a clear day — Getty Images

Download this episode on Apple Podcasts/Spotify or listen below:

Trump and Xi meet with trade, tariffs and AI on deck. (0:13) Trump pitches an AI Force while Google reveals Gemini breach. (1:07) Costco earnings put valuation in focus. (2:03)

The following is an abridged transcript:

This week, President Donald Trump will host Chinese President Xi Jinping at the White House, with trade, tariffs, Taiwan and AI expected to feature prominently in the talks.

Bilateral meetings are due ahead of the big meeting Thursday, including Treasury Secretary Scott Bessent meeting with Chinese Vice Premier He Lifeng today in New York.

Investors will also be watching for possible announcements on Chinese purchases of U.S. goods, including Boeing (BA) aircraft, and flows of rare-earth magnets from China.

SA analyst Damir Tokic says the failure to make a deal to extend the rare-earth export ban truce “could trigger a major geopolitical escalation.”

But with oil sales to China and U.S. tech exports also on the table, a deal “would have to settle the war in Russia, the war in Iran, the AI race,” not to mention the original trade war, he said.

AI dominated the news this weekend, with President Donald Trump posting that he intends to create an AI Force with an AI Czar to protect an industry that he says will one day make up 25% of U.S. GDP.

He says the AI Force will “not in any way hinder or stifle” growth and will use the current criminal and civil justice systems to handle any “bad” aspects.

While he stressed again that fears of an AI takeover are a “hoax,” Trump also canvassed for an AI rebrand to Superior, Extreme or Supreme Intelligence.

Meanwhile, Google (GOOG) confirmed that its Gemini model gained unauthorized access to three companies in May during a review of its cybersecurity capabilities, the first known incident of the company’s AI system autonomously engaging in such an act.

Gemini accessed outside systems by guessing login information or using credentials found publicly, assuming the systems were part of the test. But in all three cases, the model stopped short of doing anything further after entry.

On the earnings front the calendar is still very sparse.

Costco’s (COST) report Thursday will likely garner the most attention.

Seeking Alpha Head of Quant Steve Cress says he always leans toward a positive Hold for Costco.

Looking at price-earnings/growth, “even the PEG is freaking expensive. It’s got a D (Quant grade) for PEG, it’s at a 76% premium. So it really is a rich and expensive stock. But, there is a growth element to it,” Cress said on Wall Street Breakfast Friday.

“I’m just not sure the valuation framework is worth it.”

And you can hear more from him every morning around market open with Rena Sherbill on TikTok, X and YouTube @cresstopstocks.

Looking to the rest of the earnings calendar:

AutoZone (AZO) and KB Home (KBH) report Tuesday.

Cracker Barrel (CBRL), General Mills (GIS) and Paychex (PAYX) weigh in on Wednesday.

BlackBerry (BB) joins Costco on Thursday.

Among other corporate happenings this week, investors will be looking for more statements from media companies, especially CNN owner Warner Bros. Discovery (WBD) and MS NOW owner Versant (VSNT), after CNN, MS NOW and Politico journalists were prevented from accessing White House grounds over the weekend amid Trump’s ban of the outlets.

All three outlets, along with others like AP and the New York Times, have decried the action as violating the First Amendment.

SpaceX (SPCX) will make up 2.82% of the Nasdaq 100 (NDX) after rebalancing on Monday, up from its current weighting of roughly 1.28%, according to Bloomberg.

And McDonald’s (MCD) holds an investor day Wednesday.

And for income investors, Broadcom (AVGO) and Meta (META) go ex-dividend on Monday. Broadcom pays out on Sept. 30 and Meta on Sept. 28.

Seagate (STX) goes ex-dividend on Thursday, paying out on Oct. 7.

Medtronic (MDT) goes ex-dividend on Friday with an Oct. 16 payout date.