Venezuela's government and opposition are near an agreement to move 31 metric tons of central bank gold, worth about $4 billion, from the Bank of England to the Federal Reserve Bank of New York. The transfer would end a standoff that began in 2018, giving the interim government legal control of the bullion without an immediate right to sell it.
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.
Why the Bank of England froze the bars
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 then-President Nicolas Maduro's government, according to Reuters. Britain recognized opposition leader Juan Guaido in February 2019, and two rival boards of Venezuela's central bank then spent years sending the bank conflicting instructions about the same bars.
The fight reached Britain's Supreme Court in December 2021, which ruled that UK courts were bound to accept the government's non-recognition of Maduro "for any purpose," according to Al Jazeera. That ruling handed the gold to nobody and pushed the remaining questions back to the Commercial Court.
What the proposed transfer would change
Under the deal now 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 funds for reconstruction after June's twin earthquakes.
However, the Bank of England said 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. Washington's interest in the metal is not new: Treasury Secretary Scott Bessent said in July, according to TheStreet: "We are getting a lot from Venezuela. We are getting gold."
The bars are worth more than double their 2021 value
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.
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. 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.
Gold pledged as collateral becomes a payment stream for someone, and a vault in New York is easier to lend against than one still tied up in litigation.
Source: TheStreet
Trading involves risk.
Risk Disclaimer
