By Tyler Durdin
The latest news from the ABC.net.au should come as no surprise to those who know all too well that one can’t eat gold: “Gaddafi own private plane is loaded with gold bullion and lots of hard currency, mainly dollars, and is preparing to flee to Zimbabwe to stay there with his friend Robert Mugabe.”
Yet there is speculation that instead of pulling a Ben Ali, Gaddafi may pull a Hitler: “Earlier, one of Mr Gaddafi’s former ministers predicted the Libyan leader will follow in Adolf Hitler’s footsteps and commit suicide rather than give up power. Mustapha Abdeljalil, justice minister until he quit over the bloody crackdown on protesters, says he expects Mr Gaddafi to make good on his pledge to die on Libyan soil rather than slink into exile. “Gaddafi’s time is up. He is going to go like Hitler. He is going to commit suicide,” Mr Abdeljalil told Swedish media.”
In either case, we are skeptical that much of Libya’s oil infrastructure will survive the binary outcome. As a reminder, Libya had 143.8 tonnes of gold (or Tungsten as the case may be) as of December 31, per the WGC.
In another article posted at Zero Hedge:
While the US navy is seriously starting to amass in the Persian Gulf region, it has left the Mediterranean and more importantly, the Libyan coastline unguarded. With concerns that Gaddafi will follow through with what we speculated on Monday was a Saddam-like “after me the flood” act and burn his oil facilities, this may not be the most prudent thing. Luckily, here comes Germany. According to Spiegel, Germany has sent three warships to Libya which may possibly get involved in a “military engagement.”