Posted on 11/17/2009 1:19:51 AM PST by dollarbull
The International Monetary Fund announced today the sale of 2 metric tons of gold to the Bank of Mauritius, the nation’s central bank. The sale was conducted on the basis of market prices prevailing on November 11, 2009 with proceeds equivalent to US$71.7 million (SDR 44.7 million). This transaction is part of the total sales of 403.3 metric tons approved by the Executive Board in September 2009 (see Press Release No. 09/310), and it adds to the 200 metric tons already sold to the Reserve Bank of India (see Press Release No. 09/381).
The right way of seeing this is that the IMF is dumping gold. Welcome to the bubble.
In any transaction there are a buyer and seller thus making a market but why would you assume the IMF is making good moves?
Why are you claiming there is a bubble?
The fact that the IMF is selling gold, in my opinion, in no way signifies that they are “dumping” it as they see it’s a bubble and wish to get out at the top.
The IMF has been selling quantities of gold in a yearly policy that is announced far in advance of when the sales occur. The 400 tons sold by the IMF in this year’s sale was announced at least 6 months ago. Further, I’m pretty sure that the IMF has stated that this year’s allotment to sell will be the last large sale in a policy of selling that has been going on for a good many years.
The IMF has also issued a bulletin, a press release if you will, in which they flatly state that central banks of countries around the world need to shed their US Dollar holdings and do so in a fairly brisk pace. Their explanation being that far too many countries hold far too many US Dollars in their reserves. They say that, as we all should know, that the policies in place by the US Government of insane borrowing and spending are unsustainable and that the dollar will have a currency crisis because of these policies. They wish for as many countries as possible to diversify out of the Dollar, so that when it finally collapses, it does not drag down the entire world economy with it.
Now, I started looking for the backup press releases, etc. for what I’m saying here, before I started typing this, but I’m running out of time this morning as I’ve got a busy day.
I’ll be more than happy to find these supporting releases later in the day if any have interest, just drop a reply to this post and I’ll do so when I return later.
The paper house of cards is on fire what do you expect them to do? BUY dollars?
there is a bubble, but it aint in gold
Isn’t it true that when all those U.S. dollars come flooding back, it creates hyperinflation here?
Very well put waffehouse. The dollar bubble will pop and that is why I advise moving your dollars into assets with real value.
he/she trolls the gold threads claiming gold is in a bubble.
Yea.
I don’t mind discussing specifics but just to claim that there is a gold bubble with no backup or reason is unjustified.
At least make it interesting with a reasoned argument.
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