Gadaffi and The Hidden Pot of Gold in Libya

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Speaking through a telephone call to state television, Libyan leader Moammar Gadhafi delivered quite a defiant tirade on Sunday, March 20 vowing a ‘long war to victory’ and pledged retaliation against the international military action descended upon Libya. Many military experts have suggested that the number of troops loyal to Gadhafi could be fewer than 10,000, and argued that Gadhafi will not last long at all

Moreover, US and European governments have imposed sanctions and frozen Libyan assets worth billions of dollars, including the central bank, sovereign wealth fund and state oil company cutting off funding for further support activities….unless Gadhafi has a hidden pot of gold or two somewhere

As it has turned out, the ‘long war’ threat from Gadhafi may not be as emply as some might think. Financial Times on March 21 cited data from the International Monetary Fund (IMF) that the Libya holds 143.8 tonnes of gold (see table), but some say the actual amount could be several tonnes higher.

Instead of vaults in London, York or Switzerland, Libyan bullion is in the country held by its central bank, which is under Gaddafi’s control. However, Financial Times noted some believe that the gold reserves may have been moved from the central bank in the capital, Tripoli, to another location such as the southern city of Sebha, close to the borders with Chad and Niger.

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