Libyan Gold Reserves Valued at $6.5bn IMF Data Estimates

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 29, 2011 -- According to the International Monetary Fund (IMF), Libya’s gold reserves are significant, ranking in the Global Top 30 -worth more than $6.5 Billion US Dollars.

These gold reserves which are thought to be kept within Libyan territory could be used to finance Colonel Moammar Gadhafi’s government at a time through a comprehensive period of hard-hitting economic sanctions and asset seizures by the international community.

Investors, generally buy gold for its status as the “universal currency.” It maintains its intrinsic value through political-social issues, wars, and natural disasters.

History has shown that gold plays an important role in warfare. The Holy Roman Empire’s military and soldiers have been compensated with precious metals like gold, silver, and bronze.

According to Douglas McCrae, precious metals analyst and trading adviser at Southampton Investment Services Inc. in Birmingham UK, "Gaddafi probably has been expecting this period -another round of sanctions far more serious than 15 years ago. I think it's going to be challenging for his regime to convert those gold extensively because the world markets are not going to engage them at all. They have to consider negotiations with another friendly nation and have that gold delivered physically out of Libya."

“If you look back, gold is the ultimate form of exchange in crisis. Nazi Germany was able to fund some of its stock purchases during the war, Great Britain with the cash-and-carry in the first years of the war with the USA,” says Darren Horne, senior trading adviser at Southampton Investment Services Inc.

The attachment for gold could well reflect a craving to have an asset that can be kept locally, away from foreign rivals. And it is more usable than financial assets, stocks, bonds or stakes in firms in the countries that impose economic restrictions and sanctions.

Darren Horne     Douglas McCrae     gold     imf     Libya     Moammar Gadhafi     Southampton Investment