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Gold Tumbles As IMF Reaffirms Plan To Sell 191.3 Metric Tons Of Gold Over Time in Phased "On-Market" Gold Sales

Tyler Durden's picture




 

The IMF just announced it would resume selling the balance of its preapproved for sale gold, of which 191.3 tons remains. The sales would be in a phased manner over time to avoid disrupting the gold markets. This is not major news as this is inline with the IMF's September 2009 announcement to sell 403.3 metric tons of gold. As is well known the IMF has already sold 212 metric tons. Nonetheless, gold is selling off after hours. As gold was bought via dollar shorts, the current unwind is sending the dollar proportionately higher.

 

From Dow Jones:

WASHINGTON (Dow Jones)--The International Monetary Fund said Wednesday it will soon begin selling to the market the remaining 191.3 metric tons of gold  it has slated for release, though the sales will be conducted in phases to avoid disrupting markets.

The sale of gold, currently worth nearly $6.9 billion, will begin "shortly," the fund said in a brief statement.

"In accordance with the priority of avoiding disruption of the gold market, the on-market sales will be conducted in a phased manner over time," the IMF said.

The IMF noted that central banks in Europe have said they can accommodate the fund's gold as part of their scheduled sales in the Central Bank Gold Agreement.

The IMF board approved sales of 403.3 metric tons of gold in September to create a more stable income model and boost support for low-income countries.  About 212 metric tons have already been sold off-market to central banks of India, Mauritius and Sri Lanka.

The IMF didn't rule out further off-market sales, which would reduce the amount sold to the market.

Full press release text:

IMF to Begin On-Market Sales of Gold

Press Release No. 10/44
February 17, 2010

The International Monetary Fund (IMF) today announced that it will
shortly initiate the on-market phase of its gold sales program. This is
the second phase of the total sale of 403.3 metric tons approved by the
Executive Board in September 2009 (see Press Release No. 09/310).
The first phase was set aside exclusively for off-market sales to
official holders. A total of 212 metric tons was sold during this
phase, comprising sales to the Reserve Bank of India see Press Release No. 09/381), the Bank of Mauritius (see Press Release No. 09/413), and the Central Bank of Sri Lanka (see Press Release No. 09/431).

The total amount remaining to be sold is 191.3 metric tons. In
accordance with the priority of avoiding disruption of the gold market,
the on-market sales will be conducted in a phased manner over time.
This follows the approach adopted successfully by the central banks
participating in the Central Bank Gold Agreement. Participants in the
agreement have noted that the Fund’s sales can be accommodated under
the agreed ceilings of 400 tons annually and 2,000 tons in total during
the five years starting on September 27, 2009. The initiation of
on-market sales does not preclude further off-market gold sales
directly to interested central banks or other official holders. Such
sales would reduce the amount of gold to be sold on the market.

The IMF will continue to provide regular updates on progress with the gold sales through its normal reporting channels.

Useful links:

Factsheet: Gold in the IMF:
http://www.imf.org/external/np/exr/facts/gold.htm

IMF Survey: Board Backs Plan to Adopt New Income Model for IMF:
http://www.imf.org/external/pubs/ft/survey/so/2008/NEW040708A.htm

Factsheet: IMF Support for Low Income Countries:
http://www.imf.org/external/np/exr/facts/poor.htm

Central Bank Gold Agreement–Joint Statement on Gold:
http://www.ecb.int/press/pr/date/2009/html/pr090807.en.html

 

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Wed, 02/17/2010 - 17:47 | 234591 Mongo
Mongo's picture

Buy on the dips!

Wed, 02/17/2010 - 17:55 | 234607 Anonymous
Anonymous's picture

No, dips on the buy.

Wed, 02/17/2010 - 18:08 | 234636 Anonymous
Anonymous's picture

W..NBC. no, W-NBC!... no, W-N-B-C!!!

Wed, 02/17/2010 - 17:49 | 234594 Hephasteus
Hephasteus's picture

This should mop up some euros.

Wed, 02/17/2010 - 22:02 | 234950 Anonymous
Wed, 02/17/2010 - 22:26 | 234975 Harbourcity
Harbourcity's picture

Preach on brother!  Last one in is the looooooser.

 

Wed, 02/17/2010 - 17:51 | 234598 Anonymous
Anonymous's picture

The Chinese are idiots !

Waiting so long in the stupid hope they get their piece for a cheaper price. Now its going to be distributed between the wolfs elsewhere.

All because, India made them loose face when frontrunning and hitting it on 1040.

Chinese are like dance bears, its so easy to make them go where you want.

Just "Face", no brains.

Wed, 02/17/2010 - 18:21 | 234657 Anonymous
Anonymous's picture

It's not like there's enough gold to cover their 2T reserve anyway. It took only 7Bs for India to buy the last 200 tons.

Thu, 02/18/2010 - 02:35 | 235167 Anonymous
Anonymous's picture

Have you ever considered that the Chinese are now a major producer of gold and don't need to buy on the open market.

Wed, 02/17/2010 - 17:56 | 234599 Charles Mackay
Charles Mackay's picture

Certainly China and maybe a few other countries would like to gobble up the whole position the IMF has to offer at once, but generally, China doesn't want to chase the market higher.

However if the Chinese truly intended to upvalue their currency, and use accumulated dollars to buy the gold, then it would make sense to bid for the gold as soon as possible.

It would be easy to imagine that a Chinese revaluation would effect gold more than just the implied devaluation given to the dollar.

 

Wed, 02/17/2010 - 18:41 | 234680 THE DORK OF CORK
THE DORK OF CORK's picture

I have to say that it mystifies me that China is playing with a poker face to save a 100 dollars a ounce when it has such huge paper reserves - this is tiny money  and is not good game strategy 

Ok it could save hundreds of millions but if the gold price spikes it could lose many Billions - it is the mindset of a petty gambler and not a large nation

Wed, 02/17/2010 - 18:50 | 234689 Anonymous
Anonymous's picture

somebody doesn't understand the game being played

Wed, 02/17/2010 - 19:25 | 234746 Charles Mackay
Charles Mackay's picture

Yes, it doesn't make much sense as strategy - especially since others managing China's reserves are saying they want to move out of higher risk US debt.

Wed, 02/17/2010 - 19:37 | 234763 Lou629
Lou629's picture

"it is the mindset of a petty gambler and not a large nation"

+1

Our asian friends are well known for their enthusiastic (if not addicted) gambling, so it wouldn't shock me to learn that the ptb over there evidently share this enthusiasm.

Wed, 02/17/2010 - 17:53 | 234600 SDRII
SDRII's picture

feint

Wed, 02/17/2010 - 17:53 | 234603 Anonymous
Anonymous's picture

Ya, and it's the only thing in this world not being manipulated or speculated on, huh bitches?

It's headed down, my friends.

Wed, 02/17/2010 - 17:54 | 234604 Jean Valjean
Jean Valjean's picture

We tend to think countries might be interested in this.  I'd love to see an individual step up.  Bill?  Warren?  Come on, it's only 7 billion.

Wed, 02/17/2010 - 17:54 | 234605 assumptionblindness
assumptionblindness's picture

I wonder what would happen if the United States were to buy the remaining 191.3 tons.  Just wondering....

Wed, 02/17/2010 - 17:59 | 234614 merehuman
merehuman's picture

with borrowed money?

Wed, 02/17/2010 - 18:15 | 234626 THE DORK OF CORK
THE DORK OF CORK's picture

With the worlds reserve currency . It would be in the US long term interest to start buying with printed money as now that they are unwilling to kill the banks they might as well destroy their debt in a spectacular fashion.

It would be interesting to watch. - but the IMF gold is under US control so they should not stop there but start buying in the open market.

Although that would be a act of war against the rest of the countries of the Planet the above scenario assumes that the US would be acting in its national interest and evidence of that has been missing for at least 20 years.

Wed, 02/17/2010 - 19:45 | 234780 VegasBD
VegasBD's picture

We have total (veto) control of the IMF, no reason to.

Wed, 02/17/2010 - 21:02 | 234877 THE DORK OF CORK
THE DORK OF CORK's picture

Yes but it could be the starter signal to drive the price higher and begin to wipe out the accumulated debt - I am not saying it will happen but if the global dynamics change some more then the rules of the game could change

It is the nuclear option of course.

Thu, 02/18/2010 - 02:35 | 235166 DoChenRollingBearing
DoChenRollingBearing's picture

To my amateur's eyes, yeah, the US Treasury could borrow a bit and buy a BIG chunk of gold with low cost and low peril.  Front run China!!!  LOL!!!  I think it would be a good move to show the world that we are a serious (?) country.

Disclosure, I bought yesterday a nice chunk of Au Eagles, a Pt Eagle and a roll of Ag 1 tozs.

Oh, do I feel better now!  But, as Master B. keeps saying, well maybe I will go to my bank REAL SOON and tell them I want a big stack of $100 Benjamins to cover other bases.  Be interesting to see how our FRNs evolve over the next couple of years.

My advice: Buy gold as your finances and Au price permit.  To my favorite extra-paranoid friends, look at platinum (hard to find) or buy silver.  Looks like the .gov will not seize platinum or silver.

 

 

Thu, 02/18/2010 - 07:50 | 235258 THE DORK OF CORK
THE DORK OF CORK's picture

I was hoping to pick up some platinum maple leafs but I was also expecting the price to crash to close to 1000 but now I am not so sure - also as a euro buyer my chances could be slipping from my grasp  -  ah well you win some  and you lose some

Wed, 02/17/2010 - 20:59 | 234871 knukles
knukles's picture

With an openly professed policy of reinflation, direct purchases by the US with newly printed fiat money would be the hoot of all hoots.  A repudiation of the epitome of sound central bank policy as established by Volcker with the Saturday Night Massacre. 

Wed, 02/17/2010 - 18:23 | 234661 Anonymous
Anonymous's picture

yup, from Chinese...

Wed, 02/17/2010 - 19:55 | 234797 CB
CB's picture

u know they won't

Wed, 02/17/2010 - 23:11 | 235022 Anonymous
Anonymous's picture

If that would happen, the US$ would drop like a rock.

Wed, 02/17/2010 - 18:00 | 234616 Anonymous
Anonymous's picture

speculation was that china hasn't bought this gold because the gold isn't real. the countries that bought this gold were custodian's already for the imf gold and had that exact number in reserves.

Wed, 02/17/2010 - 18:04 | 234618 Stuart
Stuart's picture

somewhere out east someone is smiling and thinking "you dumb round eye".   Like socks through a washing machine until they're no longer able to be worn, that 400 tonne IMF sale has been announced and re-announced and re-announced in whole or in part from the first time it hit the press.  Ya, ya, ya, we get it... ok...  IMF, you want the price down....  You make Gordon Brown proud you do. 

 

 

Wed, 02/17/2010 - 18:17 | 234650 SWRichmond
SWRichmond's picture

I was thinking the same thing: how many times will they announce this sale at some critical or pivotal juncture, over what period of time?  Dozens, no doubt.

Wed, 02/17/2010 - 18:49 | 234686 glenlloyd
glenlloyd's picture

+2,

Nothing but more jawboning about how we're going to sell this gold, over and over and over again. I suspect as others have said, it's being used once again as a price suppression mechanism. At any rate I would still be surprised to see any of their gold holdings get to the market. I suspect that some smart anonymous party will acquire the balance at the last minute.

I may be wrong, but we'll see.

Wed, 02/17/2010 - 18:01 | 234619 10044
10044's picture

"Tumble"??? It's only down 12 bucks wtf? Gave me a heart attack Tyler dude

Wed, 02/17/2010 - 18:23 | 234663 boiow
boiow's picture

me too.

Wed, 02/17/2010 - 18:58 | 234699 DMA Trader
DMA Trader's picture

It should be back to 1120 in a few hours. 

:)

Wed, 02/17/2010 - 20:46 | 234856 aurum
aurum's picture

i will be elated if it tumbles...just another buying op

Wed, 02/17/2010 - 18:02 | 234620 bugs_
bugs_'s picture

Tungsten?

Wed, 02/17/2010 - 18:04 | 234622 Bill DeBurgh
Bill DeBurgh's picture

Wake me when it hits $900. I am backing up the truck at that point.

Wed, 02/17/2010 - 20:28 | 234837 Anonymous
Anonymous's picture

Thats the thing. Nobody will let it get to that price - in physcal. Invetory is drying up.

Thu, 02/18/2010 - 06:36 | 235231 Anonymous
Anonymous's picture

People like you wouldnt wake up after it was hitting 5000 US$.

Keep sleeping sheople.

Wed, 02/17/2010 - 18:05 | 234623 lsbumblebee
lsbumblebee's picture

They remember all too well the last time it "disrupted" the market.

Wed, 02/17/2010 - 18:35 | 234674 MarketTruth
MarketTruth's picture

Yes, last time the IMF sold gold (to India for $1050) the gold prices went UP at a nice clip and has virtually kept that level and never fallen below it.

Thus, consider $1100 the new bottom price for gold.

Wed, 02/17/2010 - 18:36 | 234676 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

+1100

Wed, 02/17/2010 - 18:47 | 234684 Hephasteus
Hephasteus's picture

+1158 It's a brave new month called march.

Wed, 02/17/2010 - 19:18 | 234729 MarketTruth
MarketTruth's picture

PS: Keep in mind my post above is au as priced in USD. If we price au in the Euro, then right now au is at/near the all time high.
(Wish i could post charts/pics).

Wed, 02/17/2010 - 18:05 | 234624 Anonymous
Anonymous's picture

so does this mean they're really going to be buying gold?

Wed, 02/17/2010 - 18:05 | 234625 Mongo
Mongo's picture

Does that gold even exist? Are they keeping it in their own papervaults?

Wed, 02/17/2010 - 18:07 | 234630 knukles
knukles's picture

GLD

Wed, 02/17/2010 - 18:06 | 234628 Anonymous
Anonymous's picture

Am I correct to assume that gold is declining on this news because the gold market had priced in that there would be one or two buyers who would take that gold off of the IMF's hands in one or two big orders. But, the IMF was unable to find such a buyer so now the IMF will be a steady supply on the market for a while.

Wed, 02/17/2010 - 18:21 | 234656 GoodBanker
GoodBanker's picture

That's certainly the intended impression. Fear not, this impending supply dump has been lingering over the market for 9 years now. The media parades the news around for a while, usually during periods of ultra-thin volume so as to elicit the greatest price response possible, after which large buyers swoop in and pick up the crumbs. Rinse and repeat.

Wed, 02/17/2010 - 19:51 | 234794 dumpster
dumpster's picture

bull biskets ,, gold did not fall on this news. the little gold in the imf camp will be jerked off so fast on a sale,, that even soros will not be able to lie twice

Wed, 02/17/2010 - 18:07 | 234629 Anonymous
Anonymous's picture

Is this the same gold they've "promised" to sell for the last couple of years? Sell it... I dare them. Once they sell it... the only thing they'll be holding it jack sh!t. Bring it!!

Wed, 02/17/2010 - 18:21 | 234658 Segestan
Segestan's picture

Exactly...it's just another gig, another ploy or a covert distribution, until they are ready to spring a global currency.

Thu, 02/18/2010 - 02:02 | 235144 faustian bargain
faustian bargain's picture

how would they do that? god, it just irks me that somebody could just 'spring a global currency' out of nowhere. wtf. somebody do something about this IMF monster.

Wed, 02/17/2010 - 18:07 | 234633 buzzsaw99
buzzsaw99's picture

They'd have to dump that much once a week to soak up all the loose clownbucks out there.

Wed, 02/17/2010 - 18:07 | 234634 Oso
Oso's picture

you re never gonna hear the end of this from Mr. Bates, fyi ;)

Wed, 02/17/2010 - 18:13 | 234645 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Everytime they move this much, the top pops a few months later.  get ready for gold $2500 by next October.  Thats all this is.  A little dip now, so what?

Wed, 02/17/2010 - 18:36 | 234637 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

well this should "mop up some euros"...haha.  Good time to sell too.  Now that gold made a bob up as soon as the drama from the EZ had cleared.  Take those solar doelarrs and buy more gold, ppppleaz!

I guess soon I will buy some miners.  grrrr!

Wed, 02/17/2010 - 18:09 | 234639 Anonymous
Anonymous's picture

nice timing too, thin market.. why do they even announce that they are selling it ? They like getting a worse deal on it when the bids are pulled ?

Wed, 02/17/2010 - 18:13 | 234644 schatzingrid
schatzingrid's picture

From Wiki :

In 2007 China (with 276 tonnes) overtook South Africa as the world's largest gold producer, the first time since 1905 that South Africa has not been the largest.

Guess what

Thu, 02/18/2010 - 06:39 | 235233 Anonymous
Anonymous's picture

Chinas mining industry is still very inefficient and most of what is going on is the transfer of mining claims in speculative gamble.

The true amount of production is not known and hidden behind comunist propaganda.

Its like every commodities trader would operate. Make the sellers believe you have no need for the goods.

China sucks !

Wed, 02/17/2010 - 18:19 | 234653 Anonymous
Anonymous's picture

gold glut?

Wed, 02/17/2010 - 18:46 | 234655 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"Reaffirms" and this is suppossed to have an affect on the markets?  This is proof that the markets are rigged.  This was not news!  You know I got something else too...who cares anymore?  This is all one big dog and pony show.....you haven't figured it out yet?  FIGURE IT OUT!

Wed, 02/17/2010 - 18:50 | 234690 Traianus Augustus
Traianus Augustus's picture

Selling Gold.  Gotta love it.  Fiats crash and burn on the horizon and the IMF is going to sell their gold.  I say go for it!!!

Wed, 02/17/2010 - 18:53 | 234695 Rainman
Rainman's picture

IMF needs walking around money for the coming disasters of the EuroZone crowd. And since the UST is IMF's biggest benefactor, the download serves Timmy's aim to give pause to the goldbugs and that pesky Soros, who is outsizing his position in paper GLD......now his largest holding.

ALL of the soveriegn debt whores must find buyers for their own paper. No way they want a wildebeest rush to gold......this move is just another croc in the river. The intenational scheme to subsidize massive debt is the name of the game......period.  

Wed, 02/17/2010 - 18:59 | 234702 deadhead
deadhead's picture

yep, well said rain.

hey, in other news in an attempt for NY to catch Cali, the Gov here in NY announced that income tax refunds to New Yorkers might be held up a bit due to the cash crunch.

in the spirit of the olympics, it's nice to see NY make the extra effort to get on the podium behind Cali.

Wed, 02/17/2010 - 19:12 | 234715 Rainman
Rainman's picture

Damn, DH....NY is going for the old Wimpy Hamburger deal. Excellent. No messing around with those paper IOUs......( coming to Cali again very soon ). Of course , I'm furiously trying to get hold of the friggin' 1099s I need to get my taxes done before Arnie shuts down the refund window. He could go with the Wimpy deal any day now too.

Wed, 02/17/2010 - 19:51 | 234793 Anonymous
Anonymous's picture

Get them done soon! I already filed and am expecting a refund by next week. Wasn't going to deal with CA's nonsense. I have .308 ammo to buy!

Wed, 02/17/2010 - 21:49 | 234937 Anonymous
Anonymous's picture

Same hold up of returns here in North Carolina.

Wed, 02/17/2010 - 22:32 | 234981 Miyagi_san
Miyagi_san's picture

Sometimes it takes a bitch slap to remember what you were thinking...thanks

Wed, 02/17/2010 - 18:55 | 234696 MsCreant
MsCreant's picture

I'm pretty moody today.

Gold was drifting up again, something had to be done.

Gold keeps getting knocked down and then drifts up.

Gold is the tell, the antipropoganda. Leave it alone and it will sing the story of collapse and betrayal. They don't want gold to tell its tale, so for now, they do what they can to hold it down. Selling it to India jacked the price up. Ditto the other nations. We've seen it before.

Bring it on with your lying selves and your fucking reports about how to do "surprise devaluations" of the currency. Bring it on. Go ahead and speculate on how to "manage our expectations" for the economy. Sacks of shit care nothing for people. There is no reasoning with them. They must be thrown out or destroyed.

The FED. The IMF. The real bitches. The social contract is broken. This shit is on, it's war.

Gold is the older contract, the default contract, understood across nations and across time. They know this. Greenspan knows this, wrote a paper on it. The Bernanke knows this. Obama, dunno, maybe Volker schooled em.' We wandered away from gold, conned into thinking modernity would make fiat somehow "different" this time around. It's actually worse. Electronics are more fragile than paper.

Paper = tear, decay, and burn.

Electronic data = demagnetization, malfunction, or even E.M.P.

 

Wed, 02/17/2010 - 19:02 | 234705 Anonymous
Anonymous's picture

You're right of course.

Care for a back massage?

-MobBarley

Wed, 02/17/2010 - 19:09 | 234713 RockyRacoon
RockyRacoon's picture

I'm with ya, Missy.  It's war, but at this point they have the bigger guns.  It'll take guerrilla warfare to win this skirmish.

Wed, 02/17/2010 - 19:15 | 234721 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Im moody too. 

Wed, 02/17/2010 - 19:25 | 234744 taraxias
taraxias's picture

+1000

I love it when you are in a bitchy mood.

Wed, 02/17/2010 - 19:42 | 234765 DaveyJones
DaveyJones's picture

when? I like to think of her as Glenda, the good bitch of the east. She's wise and caring and has magical powers. She's only angry at the people who deserve it. She even lives up the phrase "there's no place like home" and pays off her mortgage early.  

Thu, 02/18/2010 - 03:06 | 235183 faustian bargain
faustian bargain's picture

Glinda...North

(sorry, my kids just went to see Wicked.)

Wed, 02/17/2010 - 19:35 | 234759 Anonymous
Anonymous's picture

Mmmm... the International Madoff Fund doing its best... honestly, what do we care? Let them bring the price back down to $250 by selling everything they have. That would be like a dream come true to me. You see, they are screwed in the end. And moves like this just get us to that end game a little faster.

Wed, 02/17/2010 - 20:24 | 234829 WaterWings
WaterWings's picture

I hate that everyone beat me to it but I love this post. 

Wed, 02/17/2010 - 21:17 | 234899 Lionhead
Lionhead's picture

Sunspots perhaps? Makes a person cranky they say...

Wed, 02/17/2010 - 21:20 | 234904 SWRichmond
SWRichmond's picture

+yes, yes, yes

Wed, 02/17/2010 - 22:31 | 234980 nuinut
nuinut's picture

+1650

Wed, 02/17/2010 - 18:58 | 234701 Joe Sixpack
Joe Sixpack's picture

Interesting coincidence (?). 191.3 tons (1913).

 

Hmmm......

Wed, 02/17/2010 - 19:05 | 234709 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

always

Wed, 02/17/2010 - 19:19 | 234736 MarketTruth
MarketTruth's picture

They love numerology.

Wed, 02/17/2010 - 20:25 | 234832 WaterWings
WaterWings's picture

Sick, superstitious bastards.

Wed, 02/17/2010 - 19:08 | 234712 Anonymous
Anonymous's picture

+1

That is like the freakin Virgin Mary and Elvis in my ham sandwich! I would have never caught that! You don't think that maybe the Fed will be disbanded on Dec 23, 2013 do you?

Wed, 02/17/2010 - 18:59 | 234703 Anonymous
Anonymous's picture

Um, from my screen - gold didn't really tumble at all? What's all the fuss about? The 200 tons probably already has a line-up of buyers.

Wed, 02/17/2010 - 19:18 | 234730 DMA Trader
DMA Trader's picture

17 Feb 2010 23:02 GMT

 

 

DJ UPDATE:IMF Board Approves Giving Latvia Access To EUR200M Of Loan

Wed, 02/17/2010 - 19:19 | 234735 DMA Trader
DMA Trader's picture

well they are already spending it

Wed, 02/17/2010 - 19:27 | 234749 DMA Trader
DMA Trader's picture

i mean. aa ... investing it. 

Wed, 02/17/2010 - 19:38 | 234768 Shameful
Shameful's picture

Damnit! We need the IMF to stay out of Europe, haven't they don't enough to harm the 3rd world? Do they really need to attack the periphery states of Europe now too?

Wed, 02/17/2010 - 19:45 | 234783 DMA Trader
DMA Trader's picture

They've done a lot of bad stuff in Europe too. Eastern Europe. After communism regime went down. 

They kind of changed their policy in the last 10 years. But still no real historical proof of really helping the country's.

Wed, 02/17/2010 - 20:12 | 234816 Shameful
Shameful's picture

Another reason to hate on the IMF. I'm going to visit there this summer and was hoping the foreigners would keep their hands off so they could default in peace. Like being oppressed for 50+ years by the soviets wasn't enough now the damn IMF thieves have to go in. Thanks for posting, this now I have to read up on.

Thu, 02/18/2010 - 05:52 | 235225 Anonymous
Anonymous's picture

Can't remember which one but in one of John le Carre's novels
he wrote something like "Poor Russia! Wanted to be European for so long but forced to become American."

Wed, 02/17/2010 - 19:19 | 234733 Instant Karma
Instant Karma's picture

Jimmy Rogers would likely say that central banks always get it wrong--like when the Bank of England sold a chunk of its gold at $250 in 1999. Bottom ticked the gold market. The IMF has all of 3000 tonnes, which is a good stash. So they sell some off, raise some cash, and piss it away on failing states. That's not a solution. I'll take the gold.

Wed, 02/17/2010 - 19:25 | 234745 DMA Trader
DMA Trader's picture

My man Jimmy !!

 

Thu, 02/18/2010 - 03:02 | 235181 DoChenRollingBearing
DoChenRollingBearing's picture

Even though out of town, I bought Au, Pt and Ag in my brief visit to Chigago.

My off-the-head calculation is that THESE purchases were the biggest of my life re physical PMs of my life even though I am NOT from eleswhere from the Midwest.

I am back at home now with what apparently appears to be a comfotable holding of gold, etc.  Next up, I will buy firearms that we know how to shoot to keep our home safe.

Wed, 02/17/2010 - 19:23 | 234741 Anonymous
Anonymous's picture

http://www.henrymakow.com/greece_is_ready_to_explode.html

maybe this is for george washington...

Greece is a boiling pot ready to explode. Things are going to turn ugly and soon as society here is fed up with illegal immigration and the deconstruction of our founding values. And I dont mean the "orange" riots of December 2008. I mean real riots... Here is how we got to this crisis:

the greeks are really something. when they get pissed they hit the streets. we should learn something from them.

Wed, 02/17/2010 - 19:25 | 234743 DMA Trader
DMA Trader's picture

News of IMF selling remaining gold on open market surprising to market, indicates IMF has been unable to find willing buyer for remaining gold, says HSBC analyst James Steel; implies that central bank demand for gold is not as robust as market expectations. "The idea that central banks may turn into net buyers of gold this year is an important element in the psychology of the rally," says Steel. Impact of IMF statement may keep pressure on prices for now, but HSBC expects non-official sector to absorb the remaining IMF gold. Fund to start gradual open-market sale of remaining 191.3 tons (out of a total of 403.3 tons) of gold stresses sales would be phased in over a long time to avoid disruptions to the market. IMF's stated preference is to sell gold to other central banks or supranational organizations. Spot gold at $1,105.80/oz, down $10.80 vs NY close

Wed, 02/17/2010 - 19:28 | 234751 Anonymous
Anonymous's picture

I guess that means that QE 2.0 is about to get started, yeah?!

Gold bugs and foreign central banks get an additional chance to offload a few dollars thanks to this brilliant maneuver.

And as a bonus, the IMF can relive its Gordon Brown moment in the sun one more time ;)

Everyone wins...!

Wed, 02/17/2010 - 19:29 | 234754 Anonymous
Anonymous's picture

"The International Monetary Fund said Wednesday it will soon begin selling to the market the remaining 191.3 metric tons of gold it has slated for release"

Cool story, bro.

I think this just another attempt at bazooka theory - just threaten to sell. If they were selling for real, why would they pre-announce? It would make more sense to sell it more slowly without announcing it so they got a higher price.

Wed, 02/17/2010 - 19:30 | 234755 naiverealist
naiverealist's picture

What makes you think that they have not already sold this gold?

 

Since when do you expect these B*tards to keep us up with their activities?

Wed, 02/17/2010 - 19:31 | 234756 RobotTrader
RobotTrader's picture

Nothing wrong, "The Formula" is 100% correct
RobotTrader - Wed, Feb 17, 2010 - 06:26 PM

SPX 1,000 = Gold $1,000

SPX 300 = Gold $300

SPX 1,650 = Gold $1,650

What is so complicated about that?

Now if we could just get the correct "Formula" into the thick
skulls of all the gold pushers who keep cheerleading their own demise
by hoping that the DJIA crashes to the March lows and beyond...

LOL......

Wed, 02/17/2010 - 19:38 | 234767 DMA Trader
DMA Trader's picture

Why is that ?
Historically there was a relation between  gold and spx.
As soon as they cross each other decisions were made.
Now they go together.

But I have no idea why would be so close to each other.

This is a nice expression of how this economy is revive using printing presses.

Anyway what is your insight going forward. ?

Wed, 02/17/2010 - 19:41 | 234773 ozziindaus
ozziindaus's picture

SPX 666 = Gold $910

Wed, 02/17/2010 - 19:35 | 234760 Instant Karma
Instant Karma's picture

Gold is down $15 on 1900 contracts. Average daily volume on the CME is north of 200,000 contracts. So, the jury is out till tomorrow.

Wed, 02/17/2010 - 19:36 | 234761 ozziindaus
ozziindaus's picture

So what's the GDP of the IMF? What in hell do they produce or serve that's of any value or needed by any sovereign country which is allowed to exist by it's own certitude? Sounds like an International Slumlord organization. Thieving bastards acquired their gold without labour or any exchange of equal value. SDR's are the eye of the fiat pyramid whose existence relies solely on confidence. 

Wed, 02/17/2010 - 20:19 | 234822 Rainman
Rainman's picture

IMF = CB to the other CBs with a lttle wee-wee. Only necessary for dealing with the tar babies no country's CB wants to touch for fear it will stick to them.

Wed, 02/17/2010 - 19:41 | 234769 akak
akak's picture

Oh no!  If the IMF FINALLY sells this particular chunk of gold (after years and years of threats to do so), whatever will the laughable bankster shills such as Jon Nadler be able to do to continue badmouthing gold, by not having the perpetually threatened IMF sales to hold over the market's head like a black cloud?  No, this sale is NOT going to happen ---- it removes one more arrow (however flimsy and blunt) from the propaganda quiver of the financial and political establishment.

Wed, 02/17/2010 - 19:39 | 234770 h4rdware
h4rdware's picture

Well, as 'dips' go this is still a shy one, even if it is a tad early to say.

Sitting through (and buying into) March'08 in gold took real balls. Anything less than that and I'm just snoozing. I actually laughed out loud the last 5 times the IMF announced this. I'm laughing extra hard this time round because the number shrank.

IMFsters, chinwaggers, handwavers - bring it on. I defy your nonsense with quantities of protons in little batches of 79.

 

 

Wed, 02/17/2010 - 19:47 | 234781 akak
akak's picture

"IMFsters, chinwaggers, handwavers - bring it on. I defy your nonsense with quantities of protons in little batches of 79."

 

Very nice!

Bundles of 47 protons work well too.  And to protect both of them, balls of 82 protons are most handy.

 

Wed, 02/17/2010 - 20:30 | 234841 Hephasteus
Hephasteus's picture

Or 74 protons. Close enough for global banksters.

Wed, 02/17/2010 - 19:40 | 234771 Instant Karma
Instant Karma's picture

Robo--I'll take the pairs trade: short SPY and long GLD.

Wed, 02/17/2010 - 19:41 | 234774 Anonymous
Anonymous's picture

The interesting thing will be when, in the coming years, the IMF needs to raise funds, what will it sell then. SDR's backed by Euro's ( if they still exist), bernanke dollars, and yen? Who will they sell them to?

Thu, 02/18/2010 - 02:19 | 235153 faustian bargain
faustian bargain's picture

i'm guessing they'll just get another infusion of gold from whatever PTB that wants to be the puppet master.

Wed, 02/17/2010 - 19:45 | 234782 Anonymous
Anonymous's picture

You know who else will tumble for yah?

Boy George.

nuck nuck nuck

-MobBarley

Wed, 02/17/2010 - 19:48 | 234789 dumpster
dumpster's picture

dog barked rain fell,,, did the dogs bark cause the rain.. to fall.

 

IMF will sell gold   did this knee jerk action cause gold to fall. no.. it would have fallen today ,, what ever the announcement was to grab on to,, bernike farts gold falls,,   russia tosses a caviour to a wounded duck  gold falls.   

Wed, 02/17/2010 - 19:51 | 234795 Guy Fawkes
Guy Fawkes's picture

If by some chance this gold hits the market it will be by design. The gold manipulators will be watching for information as to how it is gobbled up, by whom, and any other data sets it can devise.

However I would be surprised if it hits the open market.

Wed, 02/17/2010 - 23:02 | 235011 nuinut
nuinut's picture

I believe IMF is actually prohibited from open market sales.

ho-hum

Wed, 02/17/2010 - 20:00 | 234802 Anonymous
Anonymous's picture

By Tumble you mean "Resistance Bitches"

Wed, 02/17/2010 - 20:02 | 234805 10044
10044's picture

do you really think this fcking criminal (Soros) DOUBLES his ETF holding for nothing?? are you kidding me? this mthr fcker RUNS THE IMF:

http://www.marketwatch.com/story/gold-futures-trade-flat-as-us-dollar-ri...

Folks, gold WILL FLY, they've already sold the gold to China, just wait for the news. and yes, 191.3 reminds everybody of 1913, the year Lucipher was manifested on this planet on Jekkyl Island.

Wed, 02/17/2010 - 20:22 | 234826 MarketTruth
MarketTruth's picture

+1

Wed, 02/17/2010 - 20:27 | 234836 WaterWings
WaterWings's picture

+1

Soros...I shiver thinking about what that toad has on his mind.

Wed, 02/17/2010 - 20:06 | 234808 Madcow
Madcow's picture

Without gold, the IMF is a meddlesome lobbyist 

 

Wed, 02/17/2010 - 20:23 | 234828 MarketTruth
MarketTruth's picture

The IMF is the central bankers (US Federal Reserve, etc). Call it SSDN (Same Sh!t Different Name).

Wed, 02/17/2010 - 20:07 | 234810 Anonymous
Anonymous's picture

It's obvious these guys are bluffing. Wall street collapsing was the earth quake. The paper currency collapse is the result of the effects.

Wed, 02/17/2010 - 20:19 | 234821 Anonymous
Anonymous's picture

Dow 10,000
Gold 10,000

Dow 5,000
Gold 5,000

Dow 100,000
Gold 100,000

Dow 2,000
Gold 2,000

Where is the downside for gold?

Wed, 02/17/2010 - 20:30 | 234842 Anonymous
Anonymous's picture

the imf *might* sell gold - no matter how many times it does this hat track of announcing faux sales - because gold is in permanent and severe backwardation....

pay no attention to the paper markets which are rigged beyond calculation....they have fake prices created by market fakers and reported by news fakers....

Wed, 02/17/2010 - 20:33 | 234844 Anonymous
Anonymous's picture

Dow 10,000
Gold 10,000

Dow 5,000
Gold 5,000

Dow 2,000
Gold 2,000

Dow 36,000
Gold 36,00

Where is the downside for gold?

Wed, 02/17/2010 - 20:54 | 234866 sangell
sangell's picture

Coincidence? That the IMF makes this announcement at the same time the Canadian Gold mining stocks are announcing their quarterly earnings.

Wed, 02/17/2010 - 20:55 | 234868 seadragonconquerer
seadragonconquerer's picture

Forget gold. Its just a fetish. Silver has many more industrial uses (esp. batteries, which will be huge once the power grid disappears), more room for upward price movement, shallow mines exhausted, much more aesthetic, and, I need you to buy. Thanks.

Wed, 02/17/2010 - 21:03 | 234881 Anonymous
Anonymous's picture

Yeah, that's right, however I find it a bit difficult carrying around 2000$ in silver inside my pockets, for those occasions I prefer gold...

Thu, 02/18/2010 - 00:25 | 235087 JohnG
JohnG's picture

Except JPM has a foot on silver's throat.

Wed, 02/17/2010 - 21:19 | 234901 Anonymous
Anonymous's picture

Eurozone loans: used for factories and production. USA loans: used for derivatives, mortgages, real estate fraud. Thats a huge difference in bank lending.

Wed, 02/17/2010 - 21:28 | 234914 pooplagrande
pooplagrande's picture

Gold is sketchy. I like the premise...and someone is going to make a lot of money...or lose a lot. Probably too hectic for me, unless it really melts down for some reason.

Wed, 02/17/2010 - 21:41 | 234928 Master Bates
Master Bates's picture

.... or lose a lot.

Except for it's not going to be somebody.  It's going to be a lot of somebodies.  All the retail holders to be exact.

Wed, 02/17/2010 - 22:41 | 234987 Anonymous
Anonymous's picture

Retail holders barely have any significant position in the gold market as it is.

On the otherhand with people having their retirements coming up they will start collecting their pensions which are heavily invested in what? US Trasheries and Agency debt.

Wed, 02/17/2010 - 23:36 | 235051 Anonymous
Anonymous's picture

MB, should I sell my gold diapers?

Thu, 02/18/2010 - 00:19 | 235083 Mr. Mandelbrot
Mr. Mandelbrot's picture

Don't worry, MB, you won't be around here for long.  Soon you'll OD on the taste of your own foot and find something else to poke at.  Are you sure you're not my stupid, annoying little sister in disguise?

Wed, 02/17/2010 - 21:39 | 234924 dark pools of soros
dark pools of soros's picture

if China buys all the IMF gold, will they throw in the keys to the world with it and say...'good luck!'

 

 

Wed, 02/17/2010 - 21:42 | 234926 waterdog
waterdog's picture

I think the IMF pulled it's head out of Bernanke's ass for a little fresh air. As it gulp it's first fresh air in 5 weeks, it looked up at the master and asked what now? Bernanke responded with sell some gold and get your head back up my ass.

 

Wed, 02/17/2010 - 22:07 | 234958 Anonymous
Anonymous's picture

Below is the press release issued this evening by the International Monetary Fund announcing that it "shortly" will sell 191 tonnes of gold on general markets, unlike the 212 tonnes it claimed to sell last year directly to India, Sri Lanka, and Mauritius. While the gold price quickly fell $7 or so on the news, there are a few things to remember.

1) The IMF really doesn't have any gold, just a tenuous claim on the national gold reserves of its members. Where the IMF's supposed gold is kept is a state secret. So is the location of the gold the IMF supposedly recently sold to India, Sri Lanka, and Mauritius. So are the gold bar numbers. There is no public evidence that the IMF's gold even exists, no public evidence that last year's supposed IMF gold sales were anything more than bookkeeping entries. Indeed, those sales may have been nothing more than a few press releases. See what is, as far as GATA knows, the only attempt to address these issues journalistically with the IMF:

http://www.gata.org/node/8052

2) In its announcement the IMF says again that its supposed gold sales will fit comfortably within the annual quotas set by the Central Bank Gold Agreement. That's because the signatories to that agreement -- the Western European central banks -- stopped selling gold last year. Since the Western European central banks are not selling, the IMF gold sales are a hint that any gold now being dishoarded is coming straight from U.S. gold reserves. The IMF is headquartered in Washington, the United States has a de-facto veto on its operations, and there can be little doubt anymore that the United States is operating surreptitiously in the gold market, the Federal Reserve having acknowledged last September that it has at least contemplated such intervention in the gold market via gold swap agreements with foreign banks:

http://www.gata.org/node/8192

3) The rationale for the IMF's supposed gold sales -- to raise cash for its operations helping (that is, expropriating) poor countries -- is ridiculous on its face. The IMF is the issuer and custodian of the world's supreme money, Special Drawing Rights (SDRs), and in just one afternoon last year the IMF conjured $250 billion of them into existence:

http://www.imf.org/external/np/sec/pr/2009/pr09264.htm

By comparison, the first 212 tonnes of gold supposedly sold by the IMF last year raised only $7 billion, or less than 3 percent of the money created by mere conjuring:

http://www.bloomberg.com/apps/news?pid=20601087&sid=alOoEXinykfo&pos=5

In such circumstances gold is not sold to "raise money"; it is sold to suppress the price of a currency that competes with fiat currencies and, when traded freely, is a measure of their debasement.

4) That is why, as Jim Sinclair and others have noted many times, official gold sales correspond with rising gold prices, not falling gold prices. Official sales are manifestations of central banking's controlled retreat when money and credit creation have gotten out of hand relative to the gold supply and gold's price is threatening to explode and make a scene very embarrassing to governments and central banks. The last decade has been a time of massive Western central bank gold dishoarding, probably a time of cash settlement of central bank gold leases that could not be settled by recovery of the borrowed metal without exploding the gold price, and during this time gold has risen from $250 to more than $1,000 per ounce:

Thu, 02/18/2010 - 01:34 | 235123 akak
akak's picture

Very cogent and outstanding analysis of the situation!  Bravo!

Wed, 02/17/2010 - 22:13 | 234961 FranSix
FranSix's picture

I seem to remember that Euro zone central banks bailed out the COMEX because of an impending commercial signal failure.  imo, this is very similar.

Thu, 02/18/2010 - 06:43 | 235235 Anonymous
Anonymous's picture

Absolutely correct !

Physical delivery is the theme of the day.

Sheople buy paper gold (ETFs, certificates, etc.....)

Investors buy the physical metal and take delivery.

IMFs sale anounsement now is the bullish war cry !

The game is over.

Go GATA !

Wed, 02/17/2010 - 22:47 | 234990 Trifecta Man
Trifecta Man's picture

Congratulations IMF!  In just a few years, the world will know how utterly stupid you were.

Wed, 02/17/2010 - 23:39 | 235055 Grand Supercycle
Grand Supercycle's picture

 

The impending dollar rally that I warned about from mid 2009 onwards has only just started.

USD Index daily and weekly charts remain bullish.

Vice versa for the EURO and DOW/SP00.

http://www.zerohedge.com/forum/market-outlook-0

Thu, 02/18/2010 - 03:13 | 235187 akak
akak's picture

So the dollar dances a jig on the way to the grave --- big fucking deal!

Stand back and look at the big picture:  the dollar, and every other fiat currency, is doomed.  And good riddance to bad rubbish.

Thu, 02/18/2010 - 06:46 | 235237 perchprism
perchprism's picture

 

Just what the fuck is your problem?

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