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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

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


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


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

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


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


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
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Wed, 02/17/2010 - 18:47 | 234684 Hephasteus
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+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


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.

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