IMF Is Now Rejecting Prospective Buyers For Its Gold Stash

Tyler Durden's picture

In an exclusive report, Kitco has just released yet another stunner in the world of precious metals. It turns out that Eric Sprott has attempted to purchase gold from the IMF, according to information provided to Kitco by Frank Holmes, CEO of US Global Investors. "I just spoke with Eric Sprott, who bid to buy [the IMF's remaining gold on the block] and they refuse to sell it." As Kitco points out, "the IMF might be holding out for a bigger buyer or a central bank or for higher prices. But Holmes argues the IMF's rejection of Sprott's bid means markets are being manipulated." Back to Holmes: "I think there is a lot of manipulation done by governments around the world in the currency markets which affect the bond markets so to me it's just normal course."  Holmes concludes "with an election year there may be a gold rally that could be two standard deviations, or $300 dollars, to the upside. So you could see gold run to $1300 to $1500 quite easily." This all is occurring as ever more pundits finally realize that as fiats are discredited across the world, the only safe, non-dilutable resource is gold.

Link to Kitco clip (select clip titled IMF Reject Buyers):

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Jesse's picture


The gold is slated to cover the central banks who leased out their gold and are now shitting their pants because they cannot buy it back in bulk without driving up the price and unsettling the ponzi shorts on Wall Street.  The physical market is tight.

If this is not the case, why won't they take bids for it from 'outsiders?'

This gold sale and the Bank of England gold sale were in relief of the bullion banks and their government bureaucrats who get caught short.  That is why they abhor the idea of audits as well.  They do not have what they say they have.  They lent it out, and it was sold.

Bam_Man's picture


Some day in the not-too-distant future, oil-producing states will stop accepting the paper promises of bankrupt economies/states as payment for their precious and finite resource. They will demand settlement in Gold.

Until that day, the games and fraud will continue unabated at the CRIMEX.

When that day comes and JPM and the other bullion banks are forced to cover their mammoth naked short positions, we will see what happens when a "beachball held underwater" is finally released.

taraxias's picture

Unfortunately, as long as our military is parked in their backyard, that day will never come.

faustian bargain's picture

I long do you think we're gonna be able to fund the military? Maybe a long time, but not forever.

knukles's picture

That our military might will be preeminent will likely be a relatively short time frame, shorter than consensus expectations by a very long shot.  Policies afoot will force a watershed choice between socialism/populism and military dominance.  The former will prevail resulting in a hollowed out, name only image of days past power projection akin to the UK in the post war period.


Consideration #2.  If you were Sprott, India, China, et al, wouldn't you be in favor of assaying of every single last bar of which you'd expect to accept delivery?  
Of course.
Just wild speculation, but where are those 440 Tungsten billets hiding?  Nice sleight of hand if it was the IMF's.  Who better to play beggar thy neighbor.  Just think...if they're the ones stuffed with the salted ingots, having taken delivery under LBMA delivery standards. 

What recourse?  What remorse!  Shakespeareian.  A continued boost to the supremacy of the almighty dollar.  Cheers! 

trav7777's picture

Well, it's about as long as needed to depose the leadership.

They don't care about the country, only themselves.  If we engaged in Romanesque wars of conquest, we could fund on what we looted.

Hell, there was a significant petrodollar component to the removal of Hussein.  Everyone there knows that.

dark pools of soros's picture

yeah we stopped his oil for euro trading.. and all his currency reserves of Euros....   a few months after the war we changed all that back and then we saw Bush declare victory..  since that WAS the goal

Pedro's picture

As long as we have the privelage of owning the world's reserve currency, we will continue to do what we want.  I am very pro military and believe in a strong defense, but, some of these other expenditures?  Hmmm.

faustian bargain's picture

I believe in a strong defense, but I don't believe in occupying the world, carrying on two+ extraneous war campaigns, and generally overextending. It's fiscally irresponsible, has little to do with national defense, and historically has never worked.

I have little confidence that we will retain the world's reserve currency status for very long.

whacked's picture

beyond me why you spend all the money on the military and imposing your capitalistic US values on the world .. when  one speaks of freedom, do you have it? the sabre rattling by Paulson and others was permitted - threatened national guard? obviously short memories!


capitalism in the US means corruption and greed, no more evidenced that the TBTF bailout ,,, what happened to main street? shall we look at cheney? what about gore? just a bunch of opportunistic hypocrites ..


your politicians do not give a crap about anything other than their own political position and you bleat about military strength .. get real and fix up your internal problems first before dictating to a world as to what is right and what is wrong ...

Gold...Bitches's picture

beyond me why you spend all the money on the military and imposing your capitalistic US values on the world ..

Its that old classic that never goes out of style called 'Empire"

Bam_Man's picture

I disagree.

I believe that oil producers will soon decide that accepting Bernanke bucks (or other forms of fiat toilet paper) as payment is too steep a price to pay for "protection" by the US military.

And furthermore, it remains to be seen how credible US military "protection" will be in the face of rapidly deteriorating government finances.

trav7777's picture

It's protection FROM the US military.

That's how a protection racket works.  They have no other real enemies.  Iran is not going to be invading KSA irrespective of their national rivalry.

In fact, nobody is.  We deposed the only dictator in the region that had any kind of significant armor capacity.  The other major nations already host our bases or are under massive sanctions.

Dicite justitiam's picture

They have no other real enemies.  Iran is not going to be invading KSA irrespective of their national rivalry.

My gut is that the Palestine issue could be the thing that blows up in the face of the US.  KSA is captive, and Sunni and Shia are in a race with each other to be the most fundamental of believers, and the oil exporters want stability of production, but beyond all of these barriers to a souring of relations with the US is that every Muslim can rally behind the Palestinians.

The problem is that the US and Israel may be in a lonely position among world powers against such an alliance.  This set of circumstances would put tremendous pressure on the dollar.  The energy required for the war machine is mammoth.  I don't know that Europe and Asia would side with the US if they invaded SA.  I feel like I'm outlining WW3.

It's a stretch for KSA to turn, but the vector of current events is in that direction.  Thoughts?

Gold...Bitches's picture

That's how a protection racket works. 

"You got a nice little country here.  Be a shame if anything bad were to happen..."

GBruenetti's picture

The moment the Saudi Family breaks bonds with the U.S. government, they will be murdered by their own citizens. So the U.S. and the Saudis really need each other.

Of course this only holds true as long as they have some believable spare capacity and that is vanishing rapidly. They *have* proven in the past that they can produce more than they do now, but that was all heavy sour instead of light sweet.

When the rapidly rising water level finally kills Ghawar, thats when the real trouble starts.

Until then the world economy will carry on through sheer momentum, people doing their daily work even in worsening conditions, because they have no other choice. And politicians, central bankers and all others who benefit from that momentum will do whatever it takes to keep it alive as long as they can.

Sabremesh's picture

If an oil producing state demanded gold, then the gold price suppressors might be tempted into reversing their manipulation tactics and driving the price of the yellow metal up so that an ounce of gold was worth 100 barrels of oil.

bullwinkle's picture

Mmmmmm.....donut.  Yes me like my Kinross holdings

Mercury's picture

Some day in the not-too-distant future, oil-producing states will stop accepting the paper promises of bankrupt economies/states as payment for their precious and finite resource.

Yeah and some day they might actually figure out how to refine their own oil without outsourcing it to western companies and tehnology.

IBelieveInMagic's picture

Holmes concludes "with an election year there may be a gold rally that could be two standard deviations...

What is the effect of election year on gold prices?

dark pools of soros's picture

unless Ron Paul wins.. probably nothing

monmick's picture

When the IMF sells gold, it simply amounts to making small accounting entries in the books of member states. Sprott, as far as I know, is not a member of the IMF. Arranging a physical delivery to Sprott would have been problematic for the IMF, to say the least...

asteroids's picture

What if the IMF really doesn't have the gold it claims that it does?


Crime of the Century's picture

Why do you think they are interested in helping Greece? They are nothing but a crew that moves in and busts the joint out. Ever watch The Sopranos?

TheGoodDoctor's picture

Maybe Sprott is calling their bluff? Maybe that is the point? Got gold IMF? Nope.

MarketTruth's picture

You are ASSUMING the IMF has ACTUAL physical gold bars for sale of the correct weights and purity. You see, the IMF appears to only want to keep the gold hidden via central bank sales. If someone independent wanted gold, no matter how deep their pockets, then this gold would be 'public' and open to being fully scrutinized via weight, measurement and for gold content.

Am now 100% convinced the IMF HAS NO ACTUAL GOLD BARS, because central banks just use ledger notation and never get audited. The IMF relies on partners to hide the crime.

DISCLAIMER: Am good friends with someone very close to Eric Sprott.


svendthrift's picture

Jesse will you open up commenting on your site please? Camon.

Quintus's picture

But, but they told us there were no buyers for this gold and they'd have to dump it on the open market...or put it on ebay or something to get rid of it and end its cluttering up of their offices.  They can't have lied to keep this trivial amount of gold (in the big scheme of things) with it's completely outsized psychological impact hanging over the market could they?  Who would do such a thing?

glenlloyd's picture

That's what they said, but I always considered it to be just jawboning to bring the market down. I was a bit shocked that they actually parted with what they did, but clearly there would have been repercussions had they withheld sales after they made (yet another) announcement.

truont's picture

You know why the IMF won't sell to Sprott?

The IMF knows Sprott will demand delivery to a non-London location.

Quintus's picture

Amen brother.

"What do you mean you want the gold shipped to you Mr Sprott?  Look at this - there's the entry in the ledger saying it's yours now.  That's good enough for everyone else!"

carbonmutant's picture

Does bring a smile to my face...

Pladizow's picture

Yep, Sprott is in Canada and guess who is on their board - Dr. Marc Faber.

hedgeless_horseman's picture

There is something about your post Pladizow that I find interesting....can't figure it out...what is it....Faber?  No.  Hmmmmmm.   A ha!  I got it!    It's the pussie in you Avatar!

MsCreant's picture

I just don't see a cat in that. Nope. No felines.

Hulk's picture

Yes, I think you should post more often Pladizow, ah, just because......

just keep it short

MsCreant's picture

DANM STRAIGHT!!! You nailed that to a cross.

MsCreant's picture

Of course theory two, or subtheory to this one, is their gold does not exist, or it is fake.

Cognitive Dissonance's picture

Say it ain't so MsCreant, say it ain't so. Because if that's true, then there must be a conspiracy somewhere of people and/or entities attempting to suppress the price of Gold and other PM's and possibly even steal my nations Gold, Silver and other precious metal wealth.

That just can't be so. The newspapers and TV tell me there are no conspiracies like this, that anyone who proposes something along these lines is just a tin foil hat wearing conspiracy theorist. The only possible conspiracies that can exist are of those nasty Taliban conspiring with in some cave by the dim glow of a laptop computer hooked up to Verizon Wireless Internet in Afghanistan or Pakistan.

MsCreant's picture

Sprott and IMF are just making this stuff up so we will go out and buy gold in order to drive the price up so IMF can sell it at a higher price. Ditto all those emails we learned about yesterday regarding silver!!! All made up to sell silver.

Yeah, really, that's the ticket [edges carefully towards the door of the coin shop]. Don't let them trick you into buying the crap.

Double down's picture

Agreed.  However, Sprott does not need to take physical delivery, he only needs to call their bluff.  His physical holdings just went up in that most precious of all non dollar denominated commodities:


Demand for his physical gold trust most likely went up.  Physical possession is slowly draining the gold market of bullion.  The superiority of fiat currencies can only be evidenced if they can be used to buy their competitor.  One cannot manipulate a market that does not exist because one cannot manipulate what has become priceless.  The unit of measure of credibility is not $ but ounces.



dark pools of soros's picture

when everyone stops trusting each other at the poker game... the cards are discarded and the guns start firing...

Segestan's picture

Nadler will try and discredit Sprott as fast as he can.

Quintus's picture

If Nadler told me Osama Bin Laden was not a nice person I wouldn't believe him.  When you have zero credibility yourself, it's not really open to you to discredit anybody.

goldfreak's picture

Q, you're really pissed at NAdler today huh? He's a discredited shill for the cartel, he's been bashing gold for years saying gold would not go over 1100, that 1000 would be a double top etc, etc, etc.

You can catch him in Marketwatch under the scree names Americanpatriot, Newbegold, Kodiak kid