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Confirmation Of Chinese IMF Gold Purchasing Intentions?
Many have speculated, but so far there have been no real facts. Until now - Pravda quotes Russia FinMarkets news agency, which has said that Chinese officials have confirmed an interest in purchasing the 191 tons of IMF gold currently on the block. The IMF, which will likely see a significant funding need shortly as it commences to bail out PIIGS by peripheral PIIGS, is likely running out of time with gold sale posturing and will need to find a purchaser who can take the entire amount asap. Even as the agency has already started to expand its domestic funding capacity via bank lines, the total amount could easily be greater than capital that the IMF has access to which could force the IMF's hand to transact swiftly. And China fits just the profile for a distressed buyer of such a sizable amount. Should the Finmarkets information be credible, look for the price of gold to spike following confirmation of Chinese purchasing interests.
From Pravda:
China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.
The IMF announced an intention to sell 403.3 tons of
gold in accordance with the adequate decision made by the board of
directors of the fund in September of 2009. India, Mauritius and Sri
Lanka purchased about 212 tons of the amount at the end of 2009. India
purchased most – 200 tons.
China’s interest in international trade is connected
with the development of the nation’s economy, as well as with the
growing consumer demand in the country.
“Chinese officials have confirmed previous
announcements from IMF experts and said that the purchasing of 191 tons
of gold would not exert negative influence on the world market. China
is interested in the development of the domestic consumer market,” the
agency reports.
Keep in mind that the 191 tons would generate about $7 billion in cash for the IMF. According to the World Gold Council, at December 31, 2009 the IMF was in possession of just over 3,000 tons of gold. We expect that as the European dominos accelerate their reintroduction with gravity, much more of this stash will end up having to be sold, as globalized union after union slowly disappears before fully blow sovereign defaults commence in earnest.
h/t Steven
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I think China has a clue,,
http://english.pravda.ru/business/finance/25-02-2010/112369-china_gold-0
Imagine my (complete lack of) surprise that I couldn't find a link to this article over at Kitco. I guess Nadler's too busy looking for gold-bashing tripe like this:
http://www.cnbc.com/id/35560782
I rarely call anyone out but Kitco doesn't even try to be even handed any longer. Even that isn't normally enough to push me over the edge. But when someone or some entity blatantlyignores information and resorts to name calling and ridicule to "debunk" a view or idea rather than engage in rational discussion, there's a bigger agenda being pushed. And Kitcofits this bill and looks to be fronting for another "interested" party.
No one doubts that Jim Sinclair (and any other pro Gold site) is biased. Jim has said precisely this for years and years. But Kitco tries to promote their views as reasonable and fair when clearly they aren't. I have no problem dealing with the wolves. But not when they're dressed in sheep's clothing.
Nadler is a total snake oil salesman. Amazing that Kitco keeps him around.
IMHO, the fact that "Kitco" keeps him around indicates that the agenda isn't just Nadler's.
Umm......doesn't Kitco have a lot of unallocated gold accounts? Wonder what would happen if they had a rush of customers trying to get "their" physical......I wonder if Nadler just works for them or also is a partner or has some other stake in the company
whats amazing ,, he and the owners are part of the deal,
they sell gold ,, backed by no gold ,, thats why the cost of their sham is lower thawn the real thing.
he talked them into making a killing .. with cash flow.. like a bank 20 to 1,, so the cash is loose .. they think nobody will waNT ALL THE GOLD ,,
I quit going to Kitco.com over a year ago.
Obvious what they are up to and I WILL NOT support it.
Nadler is a moron....and I will not waste my time reading
the "gold to xxxx dollars" and other trashy articles either
I am long physical PM's though
so where do you purchase your gold then?
run on dowm to coin shop take delivery
apmex.com
very fast shipments
CNI prices are much better than Apmex....
I buy from 3 coinshops as well.
Best dealer are by far is www.Tulving.com for over 20/au and 500/ag. Less than that, try Gainesville Coin. CNI was ok, Apmex is better imho yet the two i mentioned are better still.
Nadler is a lier.
Yeah, I used to post in the Kitco message forum. The mods will ban you if you start calling out people, so I got bored and left.
Yes, only CNBC is biased journalism.
Not goldto6000.blogspot.com or goldtothemoon.blogspot.com like the other people here cite.
LOL
Troll, you said yesterday that no one would buy the IMF gold. Care to revisit your premise?
While I didn't say that yesterday, I DID say that.
And still, nobody has bought it. All you have is a rumor from some third world news agency.
What makes me a troll, because I disagree with you? Nice.
It's like here I am, telling the truth, and you're the little kids going "LALALALA I can't hear you" *plugs ears*
another concise intellectual response.......from the poster mostly likely to point out someone's lack thereof......
If China was to switch this portion of its assets out of dollars to gold, would that be a significant action?
Careful taking shots at the Wanker!
He and I disagree on gold, but he does put in his $0.02 of rational thought.
- "rational thought" - Bwuaaahahahahahahaahaha....
...good one D !!
How does anyone know they haven't already done that, and this is just a dog&pony show?
Someone should ask Ben Bernanke why he thinks the Chinese are buying all this gold and whether he thinks it's wise or not to be doing that.
Especially vis-a-vis Chinese interest in buying additional dollar instruments. Actions vs. Words.
Except that they've already bought more dollar instruments, and the "fact" that they want this gold is just a rumor.
If the IMF was sure that gold was going to double, as you people believe... couldn't they just borrow against the gold for the money that they need, and sell the gold in a year when it's at 2000, or even 6000 to pay back the loan, with a handsome profit?
Maybe the IMF knows that this is the best price that they're going to get for gold. They better ditch that hot potato while they can.
Good point. But it does beg the question of why the Chinese would buy if they thought the price was going to be cheaper.
No it is not a good point, it's an asinine point. Think about it. Lemme ask you this? Do you really believe the tripe that the IMF is selling so they can get some fiatscos to help underdeveloped nations? If that was the case - looking at you idiot Bates - why would they make a big announcement that would ostensibly get them LESS cash (see Brown's Bottom). The stupiidity is astounding, but not surprising.
What makes you think they DID NOT get it cheaper?.
I can see China getting the same deal as RBI........negotiating, they are very good at.
Its got nothing do with money they need to raise. They could raise money in a myriad of ways. Each announcement coincides with gold starting a break to the upside. But I'm sure a multitude of these correlations are just a coincidence.
"Senator, I would expect a lack of sophistication from these unfortunate people, having not been refined by a Harvard education. They display a childish fascination for shiny metal, such as the barbaric relic known as 'gold'. However, you can't print gold. You can't wipe your ass with it. You can't make paper airplanes with it. What purpose does it serve?"
The IMF has access to money printed out of thin air.
Why would they need to sell gold?
Exactly.
More telling... if gold was truly going up like some here believe...
Couldn't they just borrow against their gold reserves, and then sell the reserves to pay off the loan after "gold to 2000, or 6000", or whatever the new prediction is here.
They don't need to sell gold, but they're getting out while the getting's good. They know that if they wait, they'll be selling it for 10-12% less.
sure, the IMF could do your little scenario...but that would imply that the IMF has no bias in this game.
That they don't care if gold rises and, if they thought gold was going to rise, they'd position themselves to profit from it.
Who is more naive here? The over-exuberant gold bugs, who still represent but a small fraction of western investors...
or you? another somehow cocky gold bear who's making a valiant effort at being the contrarian, but the problem is you're way too early.
hate to tell ya, but being a contrarian on zero hedge pretty much means you're mainstream. as popular as you think this site is, it's not that popular, let alone is the content here really understood.
Boomers are still on their hands and they will have their say in the end.
they will panic. they will send gold to the moon.
as of yet, they only panicked out of stocks and into munis, cash, and treasuries...they haven't panicked into gold.
place your bets.
Everybody wants to make money, friend. If the IMF thought gold was going to increase, they'd hang on to it until it increased. Or, they'd borrow against it and sell it when it increased if they needed the money now.
When people needed money in the housing crisis, they didn't sell the house at a 40% profit and spend the 40% because they needed money. They BORROWED against the house, because they figured the house would go up even more. They held on to the asset that they thought would appreciate.
If they thought housing was going to go down (as one of my friends did) they would have cashed out and sat on the money instead of taking out HELOCs.
So if the baby boomers didn't send the price of gold skyrocketing, who did? Who was it that drove it up 500%.
You're talking like it hasn't already happened.
I'm proud to be a contrarian at Zerohedge. While the posts have merit sometimes, the predictions have been wrong more often than not.
we just have different definitions of skyrocketing.
for one, it hasn't risen 500%, it has climbed trough to peak about 400%...using $250 to $1220...so barely 400% at that.
a trough, mind you, that represented a 20 year or so low, adjusted for inflation well you're going back even more.
400% that has happened pretty steadily over the course of a decade, with quite a bit of backing and filling along the way.
so yes, that's already happened.
big deal. we're not even close to bubble territory.
i don't want to argue, as this has all been hashed out before, but the way i look at is this...gold is in a similar spot to the NASDAQ circa 1997 to early 1998...bears are getting vocal...and a bit ornery...but most haven't been crushed yet.
i think most will before the bull is over.
Its all about supressing the gold price. If they thought gold was going to tank they'd be selling more. Of course none of these geniuses are great market timers like the British Treasury and the Canadian Mint.
+1000
Bates, what's your take on this hoss? Anybody left holding the bag?
http://www.youtube.com/watch?v=MAyjNgcZgBY
Printing SDRs is IMO the end game.
Because it's PUBLIC gold. It's the only way to get it inot private hands......THEIR hands.
Open auction...need shills to make them pay up. Blankfein, that's you.
with all that cash sitting there, do you think for one minute that the chicoms are going to allow the indians go
get their hands on those wonderful gold plated tungsten bars? nope, ain't going to happen.
china has a clue
and the other shoe
We (USA) should just buy the gold. Just issue some 30 yr paper and get more gold.
Mmm, mmm, mmm!
The most significant aspect of this announcement is that it is the first time, at least that I'm aware of, that China has publicly revealed its appetite for large "chunks" of gold. If you really analyze the message here, it's China's signal to the whole world that if someone has large quantity of gold to sell, they are the buyer.
www.truthingold.blogspot.com
No it isn't - they dramatically revised their "official" holdings last year. It seems they have been accumulating most of the mine output in country. They didn't say anything until suddenly they had a significant revision to report. Very bullish, it was.
Pravda???
Although I do not doubt China's willingness to buy gold from the IMF, I will wait until I read it from a relaible news source.
Seriously, referencing Pravda for financial news? That's almost like asking the SEC to price a CDS on AIG.
I will wait until I read it from a relaible news source.
How ironic,,, reliable
SHOCKED I SAY, SHOCKED!
If the Chinese were buying, why didn't they buy some IMF gold when the sale was first announced in Sept 2009????
Why would they buy now, 5 months after the IMF inititally announced they would sell 400moz?
India did not waste a lot of time before making their deal at around $1050/oz.
I think Russia is just messing with the market a bit.
I had read on numerous reports, one I believe was at seekingalpha, that they tried but were deliberately turned away, seriously pissing them off. It wasn't detailed why other than conjecture that political hands were at work.
Possible. China sure dumped a lot of Treasuries lately ($40B), so they must be buying something with their FRN$. It seems logical that they would buy gold, since they have legalized gold & silver sales to the general public, and even the state-run media encourages citizens to buy gold/silver. Buying IMF gold would also be a great way for China to give the finger to the USGovt, who has sold arms to Taiwan and invited the Dalai Lama to the White House--that really pissed the Chinese off.
----I was going to ask, would they for sure pay with FRNs? Does IMF only accept FRNs for gold sales?
China did not really dump the Treasuries, they went to Shanghai.
Odd, but...that was reported.
China, "Sell us gold!" IMF, "We will." "When?" "When, the price right."
;)
But India wasn't buying gold in USD.
Hear Hear
Now the silver and gold bugs have got the regulator’s ear. The Commodity Futures Trading Commission this week announced it would host a public meeting in late March to discuss speculation limits in US metal futures.
http://www.ft.com/cms/s/0/a8fed910-2171-11df-830e-00144feab49a.html?ncli...
You think the CFTC would allow just a few firms to corner the entire long position of any market in the same manner a few firms have cornered almost the entire short position in the silver market. I'm thinking no. The ref is bought.
I'd agree, Russian news agencies ain't reliable nor professional at least most of them....
BUT THE USA NEWS AGENCYS ARE LOL
I beg to differ. Fox News is fair and balanced. They told me so...
I beg to disagree. Interfax.ru is both reliable and professional.
China may well buy the remaining IMF gold, but it seems unlikely that Pravda would be the first (and only) source for this news. I am not counting FinMarkets because I've never heard of them, and they don't appear to have a website.
I suspect someone at Pravda just wanted to initiate a short term speculative surge in the gold price, and we are helping him by giving the story some extra publicity.
How Long is a Chinese?
....last name...
He runs my dry cleaners..How Long's Inc. On short Hills Ave
HIOW LONG IS a china man
Since this is from China, they are probably planning on doing the opposite. but who knows for sure...
http://www.chinadaily.com.cn/bizchina/2010-02/24/content_9495476.htm
China unlikely to buy gold from IMF
Before this sale occurs, it would be really smart for all the western governments to revalue their currencies so that their currency debts equal their gold reserves. Then China can buy the IMF gold at $25,000/oz or whatever it would work out to.
This is a short audio clip but is the best rationale I've heard for the Chinese inclusion of gold as a monetary reserve as well as official encouragement of the public sector to accumulate as well. Recommended listening.
http://www.brasschecktv.com/page/800.html
bidding war! india wants it too...
http://www.business24-7.ae/Articles/2010/2/Pages/24022010/02252010_af484...
http://economictimes.indiatimes.com/Markets/Bullion/India-seen-as-potent...
If IK remember correctly, at one time India's reserves where at 20%.
They went WAY lower, and no one loves Gold more than Indians.
I can see them snagging it easily......seriously, if they gave $1045.00oz on the first batch, they could have dumped it two weeks later and made $800B.
I'm thinking the fed knows it can crush the gold market any time it wants, and will, when the time is right but for now it continues fiddling with the treasury actions and manipulating low rates. At some point perhaps if they see gold and oil get away from them they will let rates rise and stamp the pm market out and everything else for that matter as rates of return begin to offer safety and a decent savings rate. I liken the gold bugs as a group of blind men feeling around for nickles in front of a steam roller.
I'm thinking the fed knows that gold is oversubscribed for delivery by a factor in excess of 80:1 and if it ever got into a pissing fight with CBs on the accumulation trend, the COMEX (aka CRIMEX) could get crushed (not to mention London) as well as every bullion bank that is short. Let it go there and try to tank the gold market I say. Pleeeeeaaaaaaaaaasse!
could be, just another reason for them to let go of the long end for a spell.. let rates find themselves and in the mean time smash the metals, stocks for that matter too.
+1000
Anon reacha round and pull your head out of your a$#
LOL...
Heard that SAME analogy in 2003. Have done quite well since then, picking up nickles and dimes, while keeping a close eye on sleeping fat man driving slow steam roller.
your as blind as a one eyed blind man
Yeah, but the the land of the blind, the one-eyed man IS KING"...:)
can the fed stamp out the making of bread? all PM holders could care less.
Having it is the answer.
"everything else for that matter as rates of return begin to offer safety and a decent savings rate"
Yah - can't wait to see what that does to debt service. Good times! Moron.
india wants it too...
http://www.business24-7.ae/Articles/2010/2/Pages/24022010/02252010_af484...
http://economictimes.indiatimes.com/Markets/Bullion/India-seen-as-potent...
I say let them buy all the gold....then announce we are now backing our currency with Silver.
I say let them buy all the gold....then announce we are now backing our currency with Silver.
I say let them buy all the gold....then announce we are now backing our currency with Silver.
I say let them buy all the gold....then announce we are now backing our currency with Silver.
I say let them buy all the gold....then announce we are now backing our currency with Silver.
What do you say, again? I didn't catch that.
Your knuckles are dragging the keyboard . Curby...
That would be just fine. Considering how much silver wheaton (SLW) I own, it would probably send me to the hospital with a heart attack...and a smile.
I was hoping that would happen to me, only caused by a young lady.
Except we don't have a strategic silver stockpile anymore.
Yeah, NO one does, does that make you think?.
Maybe the focus should be on a different color than Yellow?.
I like your style bro, when you wanna make a point, you know HOW.((;
What was that part in the middle again?
Gee wiz does this mean the Chinese will have less money to spend at the next US Treasury auction?
this is slightly hilarious. notice that western media didn't break this news.
China will buy the gold, but in descending order, the other suitors:
1)Saudi Arabia
2)Brazil
3)Germany
4)Canada
5)Russia- They will not get it, but they do want it!
Russia is one of the biggest diggers of gold and the government/central bank have been buying it from local miners aplenty. I've heard Putin wants 1200 tonnes of Gold reserves in government coffins. I hope we will happily swith to gold standard again ditching Fed ZOG from our shoulders.
the gold basher intoto will have theri head handed to them pronto what a bunch of witless bozoos
defending a fiat system .. and lowering their IQ to idiot level
Some people can only see a couple feet in front of themselves.
Dollar up, gold down ===> Dollar good, gold bad
Those that have the understanding and the foresight know the truth.
Dollar bad, gold good
But which one is the past, and which one is the future? It marvels me how so many here say things like "TA is reading tea leaves." Or "you can't predict the future based on the past."
And then they do the same for gold when they say "gold has been up 500% in ten years! Now it's time for it to go up another 500%"
Gold won't be up 500% because it's been up 500% in the past. It's going up because of what is going on in the world. It's a supply/demand equation. A greater number of fiat dollars chasing a fixed quantity of a commodity.
If the FED were to hike rates and the govt drastically cut spending, I would not project higher gold prices in the future but that's not the case.
Look at gold and silver today..............
They're retesting the 1100 level that you said was such "strong support" a few days ago... before they plunged right through.
http://www.youtube.com/watch?v=e69laCvKxEw
Here's the Russian website referenced. Looks legitimate - I ran it though Google's translator.
http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout...
get ready to eat your hat.. lol
march will be the month,,
jim sinclair 50 years in the business or 29 year old masterbates lol no contest
and no i do not vote for junk your post are stupid .talking . and anal .. no place to mark that
Dumpster, I appreciate your comment. Very funny! LOL
Yeah, it's almost literate this time!
Master Bater, you commented earlier, "Maybe the IMF knows that this is the best price that they're going to get for gold. They better ditch that hot potato while they can"
I guess Gordon Brown used that same logic.
Dick Handy's timing is impeccable.....
If China takes it down it means they view gold at a cycle low otherwise they will just nibble at it as their chartists see it bumping at support.
Is the IMF really willing to sell the gold or are they just trying to spike the price because it's being used a collateral?
Yes and yes - the reason, however is that they have been stuffed with pigmen as well. Doing thy master's bidding.
Well, they sold 200 metric tonnes to RBI, so why would they NOT sell the rest?.
China is not the best buyer, or the first in line............IMHO, or theirs.
If they bought it, I would be surprised.
They have the largest reserves on earth, (Known), and slave labor/cheap wage earners to get it out.
Cost, likely $250.00oz., compared to free mkt @ approx $400.00oz.
Pravda also has a story about aliens landing in Russia
http://english.pravda.ru/news/society/20-01-2010/111738-aliens-0
and a story about Sasquatch
http://english.pravda.ru/science/mysteries/25-02-2010/112381-sasquatch-0
Nadler is a pimp, and don't say this on MarketWatch or they will ban you. Even if you quote him correctly they will ban you
http://www.youtube.com/watch?v=heY15iUzZZs
Yeah, that one was hard to predict. They are FLEEING the USD as fast as they can. Because they know that we will have to devalue at some point. Better to get sweet golden things and oil now then being left with vaults full of paper crappola.
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