IMF Selling One Eighth Of Its Gold Reserves, Will "Safeguard Against Disruption Of The Gold Market"
In what can only be called a rather surprising development, the IMF has disclosed it is selling 403 metric tons of gold, or about one eighth of its total gold holdings. The reason: to continue providing lending to the poorest countries. Just so readers visualize who these "poorest countries" are, and who this current manipulation in the gold market will presumably benefit, here is a map of the IMF's most recent activities:
“I am delighted that the Executive Board has given its overwhelming backing to a strictly limited sale of Fund gold to put the financing of the IMF on a sound long-term footing, and enable us to step up much-needed concessional lending to the poorest countries,” Managing Director Mr. Dominique Strauss-Kahn stated. “These sales will be conducted in a responsible and transparent manner that avoids disruption of the gold market. Most importantly, the sales are strictly limited to 403.3 metric tons, which is one-eighth of the Fund’s total holdings, so the IMF will continue to hold a relatively large amount of its assets in gold.”
The new income model is designed to provide the Fund with more diverse income sources that are better aligned with the variety of functions performed by the Fund, with a central component being the funding of an endowment with the profits from these limited gold sales. Resources linked to the gold sales will also be used indirectly to increase the Fund’s capacity to provide concessional loans to low-income countries (see Press Release No. 09/268).
The gold sales could be conducted on-market in a phased manner over time, following the approach adopted successfully by the central banks participating in the Central Bank Gold Agreement. Participants in the recently renewed agreement announced ceilings on sales of 400 tons annually, and 2,000 tons in total during the five years starting on 27 September 2009, and noted that the Fund’s sales can be accommodated under these ceilings. Hence, on-market gold sales by the Fund will not add to the announced volume of official sales.
As one of the elements of transparency, the Fund will inform markets before any on-market sales commence. In addition, the Fund will report regularly to the public on the progress with the gold sales.
Conclusion: even more forced capital reallocation disguised as a "transparency" boosting initiative. Next up: rioting in Goldbugland.
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on Fri, 09/18/2009 - 16:38
#73902
Uh, everybody out of the POOL !
on Fri, 09/18/2009 - 17:25
#73966
this is just a further attempt to devaue the dollar and reverse the credit contraction. IMF sells, China buys with USD, another few hundred billion to go fractional with. Easy money.
on Fri, 09/18/2009 - 19:18
#74081
Guess the IMF (United States) is taking China's threat to default on those derivitives seriously. China trying to unload those USD's while they still have some value. Here goes $13b of them in one swell foop!
on Fri, 09/18/2009 - 19:42
#74098
This gold isn't even going to hit the market.
China, Russia, and maybe a few other creditor nations are going to buy it up in one fell swoop. The general market will never even see this gold.
on Sat, 09/19/2009 - 05:03
#74304
Bear in mind the IMF, like nearly everyone else in the world, 'keeps' their gold in NY.
I'd still be surprised if most of it:-
A: - truly changes ownership
B: - moves
C: - actually has 79 protons, even taken as a loose average
This announcement has been made repeatedly over the last few years. In fact I've never seen any organisation get so much mileage out of one announcement over such an extended timespan, ever. I hope they make the most of it.
on Sat, 09/19/2009 - 10:39
#74375
Good points... however...
Hasn't there been a move towards repatriation of the gold held at the Fed in the last couple of years though?
on Sat, 09/19/2009 - 09:04
#74352
Is that a prayer?
on Fri, 09/18/2009 - 19:58
#74107
Congress has to approve the sale. This happens every year (IMF threatens to sell gold.) Think about this: If it were true, why announce it to the world?
on Fri, 09/18/2009 - 20:05
#74116
you beat me to it....
i would be surprised if the imf could even find
1/8 of its so-called reserves....
this is more of the same crap from the same crap-heads
who are looking to disrupt the gold market...
and a sign of continued desperation....
this is like alf landon announcing another
presidential run...
on Sat, 09/19/2009 - 11:49
#74380
My hunch is that this deal WILL go down this time. China wants gold and wants to pay for it with American paper. Buying it from IMF saves the WEST from the embarrassment of actually having to trade gold (which will likely be going up in value) for its own paper (which will not).
If I am not mistaken, and I usually am, I believe Congress will put their stamp on it, and may have already.
on Sat, 09/19/2009 - 13:59
#74419
"and may have already."
A very good bet IMO also.
on Fri, 09/18/2009 - 20:18
#74129
Mayhem, I saw you recommended www.apmex.com on a post a week or so ago, so I checked them out. The prices were excellent, but my experience was not. I bought twenty more 1 ounce American Eagles "random years. What I received was: seventeen 2003 brilliant uncirculated eagles, one 1997 severely dented eagle (despite the coin being 22k!), one 2007 severely dented eagle, and a 2000 eagle with a small rim ding. I'm working to get them exchanged at their cost, but feel they deliberately tried to pass off some damaged junk since all the random years besides the 2003's were damaged. Do you have a back up source you'd like to recommend?
on Fri, 09/18/2009 - 20:30
#74141
I buy gold and silver directly from a coin dealer whose been in business for 35 years. I give him cash, he hands me brand new 2008 and 2009 coins. Don't trust anyone until it's physically placed in your hand.
on Sat, 09/19/2009 - 05:36
#74311
Correct.
on Sat, 09/19/2009 - 07:11
#74333
What about sales tax? When you buy locally aren't you subject to state sales tax (around $40-$75 per ounce) depending on the state.
I know that some of the Internet sites take a fee per ounce but do not charge taxes. If shipping is free or close to free, then it could be worth buying online vs buying locally and paying state and local sales taxes if they apply. This of course assumes it is a reputable online dealer.
I have used bulliondirect.com and have been very satisfied.
on Sat, 09/19/2009 - 08:05
#74340
Sales tax... what sales tax when you buy from a coin dealer? I've been buying from my local guy for a couple of years now, build a relationship and I only pay a small $35 premium (even when online was $60+, its in cash and he gives me a hand written receipt, your responsible for tracking your purchase price and sale price then "pay" tax on the difference, no sales tax involved b/c its an investment.
on Sat, 09/19/2009 - 08:48
#74349
Speaking from past experience in buying gold in NYC, there's no sales tax if the purchase is over $1000. Haven't dont this in a while, since I've begun using www.tulving.com
on Sat, 09/19/2009 - 16:46
#74477
Correct, any purchase $1,000 or larger is considered "investment" and is not taxable. Any purchase under $1,000 is taxable. I'm not sure if this is a State or Federal thing, but in either case it's fucking dumb.
That being said, my local dealer doesn't charge me any tax, whatever the total. This is the advantage of getting to know a good, reputable, local dealer.
I am Chumbawamba.
on Tue, 09/22/2009 - 05:54
#76172
Got it, and, yes it's fucking idiotic. With the prices at these levels $1000 is nothing.
I have a good, reputable dealer I can use and now that I know the rules I will buy from him.
Thanks for the great info.
on Fri, 09/18/2009 - 20:36
#74146
APMEX is great. I've ordered from them at least ten times, totaling over ten thousand dollars, and I have never had a single item arrive anything other than perfectly. Though, I always buy "new" quality items and not the random collections of old stuff - sounds like you should do the same if you don't want the random old stuff.
on Sat, 09/19/2009 - 12:09
#74390
The old stuff- numismatic gold- has appreciated much faster than bullion so far.
on Fri, 09/18/2009 - 20:37
#74147
try Tulving.com - no frills service and fully vetted - transacted in both silver and gold with them.
on Fri, 09/18/2009 - 21:05
#74164
tulving.com
Call them and you'll deal with Hannes Sr directly. Buy and sell prices posted daily on the website.
Or if you are in NYC go see David at Manfra, Tordella, and Brooks (MTB Coin) directly across the street nad downstairs from GS at 85 Broad.
I've done a lot of business with both and no problems.
on Sat, 09/19/2009 - 17:27
#74503
Ha, how ironic. I'll bet they're doing a brisk business these days amongst the bankers.
I am Chumbawamba.
on Fri, 09/18/2009 - 21:13
#74170
I have used Gainesville coins as well as APMEX. Had good experiences with both.
on Sat, 09/19/2009 - 21:18
#74633
Agreed, I've bought from both and had good experiences. I've also good experiences with Franklin Sanders' The Moneychanger.
on Sat, 09/19/2009 - 02:05
#74281
Only good experiences with Apmex here. Bought gold/silver coins, and silver/palladium bullion. I've heard mostly good stuff about Monex, but they have higher minimum purchases and prices last I checked.
on Sat, 09/19/2009 - 12:54
#74406
I recommend APMEX for buying online, they're the best IMO.
They usually are very good about refunding or replacing damaged mechandise.
Sucks you had a bad experience, but I'd stick with them for ordering online.
Best prices and delivery compared to anyone else.
on Fri, 09/18/2009 - 21:19
#74176
Just in time for the quad witch op ex. Game players all.
Not one could nurture a seed, nail one board to another, pull ore from the earth.
Dark men who thrive only in works of darkness. Pull what they pull in a crowded barroom and only the undertaker would be their friend.
They have ample rope. But are rapidly coming to its end.
on Fri, 09/18/2009 - 22:11
#74206
very old news; the imf made this "threat" months ago. and that's all this is - a threat to back down gold a bit. china will gobble it up when/if it's released.
on Fri, 09/18/2009 - 23:39
#74236
Sell on the News? Even if it's IMF lying news?
on Sat, 09/19/2009 - 00:48
#74260
This is not news.
on Sat, 09/19/2009 - 11:53
#74383
Let's say it is news.
Sell on the news applies to bullish news. You don't sell on any news.
This would be BEARISH news. I think you would buy on bearish news.
But then this isn't really news.
on Sat, 09/19/2009 - 07:08
#74331
See my post #73951 below. Congressional approval was obtained in June.
on Fri, 09/18/2009 - 19:35
#74094
This IMF sale is extremely well known and reported. The price of the sale has been baked into the cake for months. Plus, they are also going to sell the gold under the Washington Agreement, thus it isn't going to increase the amount of official gold selling at all.
on Sat, 09/19/2009 - 14:44
#74429
Here's a page from the IMF site that explains their BS in their BS terms.
http://www.imf.org/external/np/exr/facts/gold.htm
on Fri, 09/18/2009 - 16:40
#73904
If it's transparent, then maybe we'll get to see who the buyers are.
Announcing on a Friday seems to recognize that this move will impact market perception. They must think the peeps will need the entire weekend to let the medications take effect before Monday.
on Fri, 09/18/2009 - 16:41
#73906
GOLD WILL HOLD ITS VALUE IT'S ONLY 13 MILLION OUNCES THERE'S NOTHING THAT HOLDS ITS VALUE LIKE GOLD IN INFLATION OR DEFLATION OR 13 MILLION OUNCE SURPLUS LALALALALA I CAN'T HEAR YOU
on Fri, 09/18/2009 - 17:52
#73999
Are you high? Thirteen million ounces is, obviously, about $13 billion—probably closer to $12 or even $11 billion by the end of the sale. No matter how orderly the sale, gold prices will take a huge hit....
....and I'm guessing that that is exactly the point: The IMF (in conjunction with the Fed/Treasury?) probably would like to see an orderly devaluation of the dollar. Selling a big chunk of gold—and making a fuss about it—would be the ideal way to go about it: Sell gold big, watch gold prices fall hard while simultaneously killing the dollar. When gold finally rebounds to realistic levels ($2,000 an ounce? $2500?), everyone will be used to the demi-dollar.
on Fri, 09/18/2009 - 18:47
#74058
I have no doubt China will be more than happy to buy 13 million ounces at the current (cheap) price.
I smell more desperation in the air. Everytime gold looks to explode out pops the IMF with another threat to sell.
on Fri, 09/18/2009 - 20:38
#74149
Agreed. I think the IMF game has limited effectiveness anymore. Even if the price falls just on the threat. China will buy everything in sight at depressed prices and the price will pop. If they actually sell, which they won't, China will buy all of it and the price will explode.
on Fri, 09/18/2009 - 22:09
#74204
Anything to dump all the dollars they are forced to hold against their true will.
Only better would be to denominate debt in dollars. And then buy gold.
Trade of the century. Maybe the next biggest bubble.
on Sat, 09/19/2009 - 00:37
#74256
<blockquote>I smell more desperation in the air. Everytime gold looks to explode out pops the IMF with another threat to sell. </blockquote>
You are right on the money!
I wonder what else the IMF is selling? Office furniture? Signs of fear are everywhere. Look and listen to CNBC.
There is no sign of greater desperation than the current Fed- supported stock rally; we couldn't stand a real market, could we? It might go down ... and not ever go up, again!
http://economic-undertow.blogspot.com/2009/09/s-1500.html
on Sat, 09/19/2009 - 12:18
#74394
What else are they selling? FEAR. Fear is the only power TPTB really have. There is nothing to be afraid of- even the worst case scenarios.
on Fri, 09/18/2009 - 18:02
#74013
You are absolutely right, it will hold its "value". But not its "price".
on Fri, 09/18/2009 - 18:57
#74069
Yeah- they will distort the price for awhile, but eventually it will catch up to its value...
on Fri, 09/18/2009 - 20:07
#74118
i am glad you agree....
problem is is that imf will not sell any gold...
this was a press release for fools...
on Sat, 09/19/2009 - 00:53
#74263
Most of the time when they make these announcements, they don't sell anything and this could be the same thing once again although I think if their intention was to hammer the price of gold, they would have made the announcement during the week while gold was trading to get an immediate reaction in the price. The Friday, post market close, announcement leads me to believe that they didn't want this one to get too much attention because it is not a head fake. You can read the link I posted below for an alternative explanation involving China.
on Fri, 09/18/2009 - 16:51
#73912
actually its 11 666 666,7 ounces troy.
auf wiedersehen
swizz bank krew
on Fri, 09/18/2009 - 17:20
#73959
Love that swiss chick in the hologram movie on the train windows at the Zurich airport.
First you hear cowbells and then you see swiss boobies hoisting hot chocolate. What a welcome. You swiss guys are cool! Thanks
on Fri, 09/18/2009 - 21:25
#74178
Not so cool... for the amount it costed to set up that ridiculous "welcome" they should have showed at least a nip.
on Fri, 09/18/2009 - 16:53
#73914
don't think i'm all that upset, and i'm hardcore. looking at how far out on the edge JPM is with its gold short....i'm looking at this .....and realizing we have their backs to the wall.......
and when they sell this, what do they do next to save the COMEX?
on Fri, 09/18/2009 - 20:10
#74119
even if the imf were to do this and even if it
caused a depression in gold prices, it would
be an excellent buying opportunity....
however with some portion of 1.3 billion chinese
now in the gold maret i think that 403.3 tons
could be quickly absorbed....
however, none of this will happen....the imf
trots out this donkey dung all the time....
on Fri, 09/18/2009 - 16:54
#73917
Actually they're selling calls on GLD.
on Fri, 09/18/2009 - 17:16
#73956
Is that just a random comment or are you certain that they are actually selling calls on the GLD?
on Fri, 09/18/2009 - 16:56
#73919
Smart. Buy Low; Sell High
on Fri, 09/18/2009 - 18:27
#74044
I think they are going to make a killing on this trade.
on Fri, 09/18/2009 - 18:51
#74063
If you mean the IMF, I agree with you.
on Fri, 09/18/2009 - 16:57
#73921
will China offer to buy some portion of that ?
on Fri, 09/18/2009 - 17:22
#73963
If China sez they are buying...THEY ARE SELLING !
on Fri, 09/18/2009 - 22:04
#74203
Like copper, iron ore, commodities, Austrialian mines?
on Fri, 09/18/2009 - 22:58
#74224
Go to the back of the class, dork.
on Sat, 09/19/2009 - 11:27
#74379
You don't make pipes and wiring out of gold. Anyway China doesn't buy at the top, they buy when things are cheap like when they were buying massive amounts of oil and copper AFTER the prices crashed a year and more ago.
As for Anonymous gutless wonders ...
on Fri, 09/18/2009 - 16:58
#73922
There back is against the wall....sell to continue loans to 3rd world countries my ass! IMF...obviously just another branch of the US....period.
on Fri, 09/18/2009 - 16:59
#73923
I am glad they are working to keep a lid on things as far as the gold price is concerned. Gotta keep those demanding physical gold at bay.
I know if the gold price was to be let loose, it would really affect my daily life. Everything I use would be affected and increase in cost,,,,just like oil and food prices. Why doesn't the FED intervene at the pumps and at Safeway keeping prices in check? That would help me more.
Hmmmmmm, maybe they are not in it for me.
I must admit I am impressed with their ability to keep a lid on prices, especially with the way the USD has been pounded. I expected more of a bounce in gold than I have seen.
Will the lack of physical gold backing 100 times the paper ever matter?
on Fri, 09/18/2009 - 20:13
#74121
you betray an astounding ignorance of gold and
money...
on Fri, 09/18/2009 - 17:00
#73925
It reminds me of dear old Gordon Brown announcing Britain is going to sell of its Gold reserves, Gold Price Tanked!
Now that was a pay day!!!!!!!
on Fri, 09/18/2009 - 17:00
#73926
China will buy the entire 400 tons without batting an eyelash. After all, 400 tons or 13 million ounces is only $13 Billion at $1000 per ounce.
Personally, I believe this Gold sale was negoiated with China in exchange for China purchasing some more greenbacks to keep the Ponzi scheme going a while longer.
on Fri, 09/18/2009 - 20:52
#74157
Most definitely!!!!!!!!!!!! (except more Treasury's instead of "greenbacks")
on Fri, 09/18/2009 - 21:53
#74192
That's got to be it--
on Fri, 09/18/2009 - 21:56
#74196
That makes a lot more sense than the IMF story.
on Fri, 09/18/2009 - 17:00
#73928
~YAWN~
How many times are they going to sell that 400 tonnes? OMFG. They've been chatting this up (when necessary) since at least January 2007.
http://www.abcmoney.co.uk/news/31200715460.htm
on Fri, 09/18/2009 - 17:03
#73936
Well they have doubled there money, IF they can get $1K an ounce. So well done IMF!
on Fri, 09/18/2009 - 17:25
#73957
Next up: rioting in Goldbugland.
This is ho-humsville in goldbug land. Bring it! Anyone connected with the PM markets knows about this, and has known about it for years, and is tired of hearing about it every time gold prices make fiat look bad. It will never "hit" the market, some smart central bank will buy it (China!), and is a paltry 12,800,000 ounces, not even enough to cover shorts on COMEX.
http://goldnews.bullionvault.com/got_gold_090820093
As of Tuesday, September 1, with gold then at $955.90, the three US banks with reportable futures positions held a total of 509 contracts long gold and a total of 75,550 contracts short gold for a total net short position of 75,041 Comex Gold Futures 100-ounce contracts...As shown below in the Gold Commitment of Traders (COT) section, all commercial traders as a group (all 48 of them) reported a net short position of 216,708 contracts the same day.
Gosh, that's a net short position of 21,670,000 ounces. They're pissing on a forest fire. Next question: Does the IMF have any silver, because I hear that's in short supply, too.
on Fri, 09/18/2009 - 19:07
#74073
Jesus man! Are these guys idiots? Everytime Gold prices rise they come up with the same bullshit nonsense - "IMF is going to sell Gold". They have talked about it this year - for what - the 10th time now? - AND IT IS THE SAME GODDAMN SALE!!! C'mon, just sell it already and be done with it. Could they be saying this any louder - "This is it. We are done. We don't have any more bullets left in our Gold price suppression scheme."? Whoever is falling for it again does not deserve to be in the Gold market, IMHO. Just use it as another opportunity to buy some more at firesale prices, IMO.
on Fri, 09/18/2009 - 20:19
#74131
you forget that there is a sucker born every minute
so for those suckers born since 2007 they
needed to rehash the stupid lie...
these turds couldn't find 403.3 tons to save
their butts....if they ever had any gold it
has long gone up in smoke...
this is one time where watching american idol
would be a far better use of time..
on Fri, 09/18/2009 - 20:15
#74124
and your documentation for that statement is?
on Fri, 09/18/2009 - 20:57
#74160
Well done IMF? Double the units of currency at half the purchasing power looks like break even to me.
on Fri, 09/18/2009 - 17:06
#73945
Right on, SWR. Google IMF 400 gold tons and you'll get at least three hits this year--all the while gold continues rising. Stupid bankers...
on Fri, 09/18/2009 - 17:00
#73929
You know...with the way the market is going today (with fundamentals out the window and economic fundamental no longer relevant)....fuck it this additional supply is just verification that Gold is going to sky rocket regardless of the additional supply!
on Fri, 09/18/2009 - 17:01
#73930
double post
on Fri, 09/18/2009 - 17:02
#73931
shouldn't they wait till after the second QE announcement ? Or do they need to pound the price down before hand so it doesn't drown JPM?
on Fri, 09/18/2009 - 17:02
#73932
This is pretty significant and marks the beginning of the end for the IMF.
on Fri, 09/18/2009 - 17:02
#73933
What China wants, China gets. They must have threatened to request delivery at the COMEX. Everyday they deplete their USD holdings even more and free themselves from the shckles of the USD. What will happen when they are free of the US shackles? Will gold finally explode at that point?
on Fri, 09/18/2009 - 17:02
#73934
They are trying to control inflation indicators politically. Buy on the dip
on Fri, 09/18/2009 - 18:32
#74049
That was what I was thinking, buy on the dip if it shows up.
on Fri, 09/18/2009 - 17:03
#73935
the banks trying to cap the price are getting scared that they are about to be run over. check it out here.
http://futures.tradingcharts.com/cotchar...
on Fri, 09/18/2009 - 17:03
#73937
Let me think here: The boyz are short gold and silver, long the dollar and even China would like the dollar to go up so that they can buy even more gold and silver at a higher exchange rate and lower price ... so who do we need to call on a Friday evening how about a hand from the IMF
on Fri, 09/18/2009 - 17:03
#73938
Is this actual sales of PHYSICAL gold or are they leasing it? Sorry you have to ed-u-ma-cate the NOOB...
on Fri, 09/18/2009 - 19:47
#74102
Actual sale of gold, not a lease.
on Fri, 09/18/2009 - 17:04
#73941
ABX hedges. Who's your daddy?
http://www.zerohedge.com/article/barrick-gold-conundrum
on Fri, 09/18/2009 - 17:05
#73942
you might as well sell something at an inflated price to people who believe gold will be used as a medium of exchange in the next few years. lmao. this news might provide the reverse effect of the "china is buying gold" spector that aided in the latest frenzy.
silver, in all its infinite parabolic glory, might shed 20% in a week if gold falls only 3-5%
on Fri, 09/18/2009 - 21:37
#74183
Who cares?! Who's selling? My local coin dealers haven't had silver in any quantity all year.
on Fri, 09/18/2009 - 21:58
#74198
Must herd the cattle away from an instrument beyond our control, into an instrument backed by flimsy promises which we can destroy at a snap of our fingers. We have backed every moving piece in this swiss watch of an economy with US dollars, double backed some via AIG, given foreign entities gobs of cash-ola, but still we must make some believe that there is inherent value in our pretty stamps. Bah gumwrappers have more inherent value. Tiffany boxes, gorgeous lingerie, record albums are all the same. Meaningless without real content.
The US banker mafia and their US dollar are bereft. Bereft of value, meaning, integrity, ethics. It is a bearer bond for unalloyed, open corruption and cronyism.
Yes, please may I have some more poisonous value destruction fiat currency?
on Sat, 09/19/2009 - 17:45
#74518
First, bravo.
Second, with the exception of gorgeous lingerie, I submit that the other items take on a meaning of their own without content.
This useless message brought to you by I am Chumbawamba.
on Fri, 09/18/2009 - 22:26
#74212
Well your wife would prefer it as medium of exchange since I'm pretty sure you're having her sucking dick for beer money. BJ=$2.50 from john_connor's wife.
on Sat, 09/19/2009 - 08:14
#74343
go phuck yourself you lewd bastard. all i am saying is that gold/silver could pull back a bit before it heads to infinity/oz in like 10 years. Let me ask you something, if gold was ready to shoot to $5000 USD/oz. RIGHT NOW, do you think YOU would be allowed to own it? I phucking doubt it. And if a collapse of all fiat currencies really happens, do you think you will be allowed to offer someone gold for anything without getting your head blown off?
BTW, I have enough physical PM's in my possession to serve as a hedge in case of complete dollar debasement or collapse of the monetary system, and I dont need some dickweed gold bug to lecture me about fiat dollars backed by garbage. I mean, no shit.
on Sat, 09/19/2009 - 17:48
#74521
First, bravo.
Second, what's this, "do you think YOU would be allowed to own it?" bullcrap?
No one, but I mean NO ONE, gives me permission to own anything, mother fucker. If I want it and I can pay for it, I'm buying it. Fuck this "permission" shit.
I am Chumbawamba.
on Sat, 09/19/2009 - 18:32
#74552
Really what I meant is that if common, non Goldmanites, have physical gold that is worth $5000 USD per ounce, then a loaf of bread, not to overuse the analogy, would be $500 per loaf, or some ridiculous nominal value in fiat currency. In other words, gold's relative value will be only be great if you are a chosen one. If everyone has it, then the powers that be would never let it rise to a lofty value relative to the precious fiat currency that can be counterfieted to a point where you pay interest to those same masters. I wish I could wake up one day and have my gold be worth $5000-10,000 per ounce while the relative price of things stayed the same. Of course, if hyper inflation really sets in, people will kill for gold if it is used as a medium of exchange. Frankly, in that situation, I would skip to the point and accumulate food and energy by force rather than chase down gold.
on Fri, 09/18/2009 - 17:06
#73944
I think China soveriegn fund has the money to call out a gold manipulation bet. I think they are getting tired of playing by Wall Streets rules.
on Fri, 09/18/2009 - 17:38
#73982
Why would they chase the market up when they can run stops on the widows and orphans and buy everything at a lower price. When they are ready they will push the price up but mullets do not get a free ride.
on Fri, 09/18/2009 - 17:08
#73947
I think they need US Congress approval before they sell even one ounce. That should be interesting...
on Fri, 09/18/2009 - 17:10
#73951
Oops. Congressional approval passed in June. Must have been fishing...
IMF Board Approves Sale of 403.3 Metric Tons of Gold (Update1)
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By Sandrine Rastello
Sept. 18 (Bloomberg) -- The International Monetary Fund’s executive board approved gold sales of 403.3 metric tons valued at about $13 billion and pledged to avoid disrupting the market with the transactions.
The IMF said it would “stand ready to sell gold directly to central banks.” The sales could also be conducted in the open market in a “phased manner” over time, the Washington- based lender said in an e-mailed statement today.
“These sales will be conducted in a responsible and transparent manner that avoids disruption of the gold market,” IMF Managing Director Dominique Strauss-Kahn said in the statement.
The IMF board last year endorsed the quantity to be sold, which accounts for one-eighth of the IMF’s total gold stockpile, as part of a plan to shore up its finances. The sale will also increase the agency’s ability to lend at reduced rates to low- income countries. The IMF is the world’s third-largest holder of gold reserves.
Gold futures for December delivery fell $3.20, or 0.3 percent, to $1,010.30 an ounce today on the New York Mercantile Exchange’s Comex division.
The U.S. Congress in June approved legislation that permits the American representatives at the IMF to agree to the sale.
To contact the reporter on this story: Sandrine Rastello in Washington at srastello@bloomberg.net
Last Updated: September 18, 2009 17:29 EDT
on Fri, 09/18/2009 - 18:28
#74045
And my Congressthing didn't even tell me! Well, early October is supposed to be a good "seasonal" time to buy gold anyway. Maybe this October will be even better.
on Fri, 09/18/2009 - 17:10
#73950
He who has the gold makes the rules. Which way is the pendulum swinging?
Maybe its not China like we all think though. MAybe its going to JPM, to bail them out, ala the Bundesbank bailing out Deutsche Bank several months back. Likely the former though.
on Fri, 09/18/2009 - 17:14
#73955
Is it irony, or coincidence, that the amount is almost exactly the same as Barrick's hedge book?
on Fri, 09/18/2009 - 17:27
#73968
LOL You mean isn't it strange that it's the exact same amount that was settled up 2 years ago by Barrick's hedge book.
http://www.321gold.com/editorials/willie/willie091809.html
Me thinks barrick has the same gold hedged at oh maybe multiple price points.
on Fri, 09/18/2009 - 18:00
#74008
"The next big question is where will Barrick purchase the gold to fulfill the contracts and retire them with metal delivery. It looks like the open market. Maybe the source will be IMF gold bullion."
on Fri, 09/18/2009 - 20:29
#74140
barrick has been trying to clear its faux
hedges for several years...just like the imf
threatening to sell gold barrick threatens
to clear its hedges as it reduces shareholder
value to oblvivion....
barrick is a dead duck....takeover vultures
will swirl overhead in the coming months...
on Fri, 09/18/2009 - 17:31
#73972
ECB may have bailed out DB in a smiliar manner earlier this year.
http://forums.opendemocracy.net/node/48774
on Fri, 09/18/2009 - 18:49
#74061
So that means nearly half the gold mining industry and Pass the Deutshe on the left hand side bank is infested with circa 1650 20 receipts for every ounce of gold scams.
on Fri, 09/18/2009 - 23:25
#74228
take delivery = short squeeze; we'll know they've defaulted when they change the delivery rules.
on Sat, 09/19/2009 - 07:52
#74337
Good point monmick. When ABX eliminated part of its hedge, it cashed out rather than deliver metal. If whoever was on the other side of that trade on-sold and their counterparty wouldn't take cash then they'd be on the hook for physical delivery. Not coming from ABX, someone had to step in for the save.
So not out of the realms of possibility that this is a stick-save for Barrick's counterparty (probably JPM).
on Fri, 09/18/2009 - 17:27
#73967
TD, with great respect,it was no surprise to me. If you go back to I believe Mar,TG did say that the IMF can sell their gold if they need money for the developing countries help. Hence I didn't buy gold at $850. And furthermore, I was afraid that he might even convince the the congress to sell the (Fortknox)reserve. In fact,it is quite possible that some of it has been sold to finance the latest market hype. The motto is simple,everything and every revenue for Wall St.
on Sat, 09/19/2009 - 06:41
#74324
It was "no surprise" to you, yet you passed on gold at the $850 price point? I wish I would have been sentient at that price. One of us is going to be wrong.
on Sat, 09/19/2009 - 08:04
#74339
A lot of people believe that there is no gold in Fort Knox and I tend to suspect that they are correct. Foreign interests (particularly France) most likely cleaned it out as the gold standard broke.
No audit has ever been conducted and all attempts to conduct an audit have been blocked.
on Fri, 09/18/2009 - 17:38
#73981
OT, but there's the following from Bloomberg:
"Sept. 18 (Bloomberg) -- The U.S. Secret Service is examining more than $100 billion of U.S. government bonds confiscated in northern Italy in August, just two months after $134 billion of allegedly fake securities were seized in a nearby town."
Yes, that is a SECOND batch of $100 billion "fake" bonds heading into Switzerland. The story goes onto say that the first two "japanese men" from June have disappeared.
on Fri, 09/18/2009 - 18:55
#74065
They disappeared. With PDF's of thier passports running around the web. Really? Known bond forgers can just disappear?
on Fri, 09/18/2009 - 20:19
#74132
Umh, no. They are authenticating them for a Swiss bank
on Fri, 09/18/2009 - 20:25
#74135
actually this is not off topic - it is more
newsfaking from the cia controlled press....
this is part of the madoff cia operation...
and bond forgers have "disappeared"? you mean
as in "and it's gone." - southpark c. 2009
bwaaahhahahahhahhahahahahhhahahahaha!!!
who is so fucking stupid to believe this crap?
i know, the same idiots who believed the
warren commission report....
on Sat, 09/19/2009 - 01:58
#74277
If the FED handed me a $10,000 bearer bond. I'd wipe my ass with it and stick it to their forhead with a 8inch randal fighting knife. That's how legitimate this whole economic system is. Bonds and treasuries are only promises and the only promises the FED has kept historically are it's promises to lie forever and ever or as long as it works.
on Sat, 09/19/2009 - 17:56
#74529
Really? I'd cash it and buy gold and silver with it. Fuck.
I am Chumbawamba.
on Fri, 09/18/2009 - 17:40
#73984
It's only roughly 12% of one year's production and clearly designed to build up their new SDR reserves. I can see why they are doing this; they need the cash to bail out and set up an austerity program for one of the IMF's member nations:
The U.S.A.
on Fri, 09/18/2009 - 17:45
#73991
gold will open down $40 on Mon.
on Fri, 09/18/2009 - 18:56
#74068
If the dollar raises a couple basis points. LOL
on Sat, 09/19/2009 - 18:04
#74538
I wish.
I am Chumbawamba.
on Fri, 09/18/2009 - 17:48
#73995
Gold bugs gone wild!
Did you really buy the "1300" an ounce hesis?
on Fri, 09/18/2009 - 22:44
#74222
Yes, because a trillion, to put it into perspective is approx. 32,240 YEARS worth of SECONDS. Fiat currency creation has gone crazy. In addition, when you consider how the smoke and mirror government statistics obscure exactly how much of this funny money is being created and who exactly it's going to, a country, company, etc. doesn't really know how big a slice of the "pie" they really own. The simplicity of gold is making more and more and more sense to more investors as the alternatives unravel in their complexity.
on Fri, 09/18/2009 - 18:00
#74005
Interesting that JPM and GS have layerd on record shorts in gold/silver. Inside info.?
on Fri, 09/18/2009 - 18:40
#74053
Is it "insider information" if you know what you yourself are about to do?
I'll guess this is prepping for when they help facilitate the strong-dollar-hammering of the indices and commodities in the next few months to keep the audit bogeymen at bay, and to help justify more gubment cheese for the banksters.
on Fri, 09/18/2009 - 19:35
#74095
Why would anyone bet aganst GS and JPM? What is your edge?
on Sat, 09/19/2009 - 05:27
#74310
Generally, no. Those guys have always won in the short term, and this data provides the cues:
http://www.cftc.gov/dea/bank/deasep09f.htm
...however, the extremity, singularitly and gradient of their position indicates they are attepting a King Canute maneuver. Which is why the gold price is now $1000, instead of $250, where they would prefer it to be.
on Sat, 09/19/2009 - 06:52
#74327
"King Canute" - good stuff, a Williesque analogy.
on Sat, 09/19/2009 - 09:31
#74353
It's a simple carry-trade. Bullion banks lease gold from central banks at a low interest rate and enter a short position by either leasing forward or on-selling (paper) and supposedly cover their liability / risk by buying long dated futures at a profitable strike. It must be attractive to add to that short position when the money is so easy to make, but pushed too far it can end very badly should a downstream player stand for physical delivery.
Say, hypothetically, that a BB leases 400 tonnes of gold from a CB and enter into a long dated futures contract with a reliable gold miner. The BB then enters into a short position by selling paper written on that gold, secure in the knowledge that the position is covered by the miner's promise to extract metal in the future. Easy money!
Now suppose that somebody downstream demands allocation / physical delivery, triggering an allocation cascade through the paper trail. The BB is then on the hook to deliver physical metal and must stand for delivery against the miner. Now suppose the miner sees this coming in advance, knows it hasn't mined enough to make delivery good, panics, and cashes out of its positions. This nets the BB a healthy paper profit, but still leaves the BB on the hook for physical delivery. If it runs to the market to find real metal, the gold price will rise to the point where the BBs paper profit can't cover the delivery demand, resulting in a net loss.
Even worse, if risk models did not factor in a large delivery request and there is an excess of paper in the market, then there isn't enough physical metal in existence on the open market, resulting in a potentially infinite short-squeeze that ends only with the BB defaulting. A soaring gold price is bad news indeed for those who benefit from our faith in fiat currencies.
Now suppose that the affected counterparty is a very large trader across many sectors and threatens default counterstrikes should delivery not be made. To prevent a nuclear chain reaction, a CB must come to the rescue and deliver physical metal from its stash to pacify the counterparty. The BB is now on the hook to make physical delivery to the CB to plug the hole, but with a much longer time frame to do it, relieving pressure on the gold market.
Once things have calmed down and the price declines, the BB can acquire physical gold over time to make good the CB (aiming to do so at a profit), then the whole scheme can start over (assuming the downstream player eventually eases up).
on Fri, 09/18/2009 - 18:08
#74020
Hey guys, were the reserve debt to become mmmm not reserve anymore, what would the only ticket to see such a show look like?
on Fri, 09/18/2009 - 18:09
#74022
OK, so JPM and GS are short gold and silver.
But what about the employees? What about the CEOs and the stockholders? Why do I think the elite who own these 'banks' (more like a front for a criminal syndicate, really) are long gold and silver, while their economic entity is short?
Kind of like the ultimate hedge, really?
on Sat, 09/19/2009 - 17:45
#74517
> Kind of like the ultimate hedge, really?
Oh yes - thats sweet.
on Fri, 09/18/2009 - 18:31
#74046
How can the statement “pledged to ensure against “disruptions” in the gold market” ever be believed. With Comex gold contracts due this coming week, and the big shorts with their backs to the wall……the timing of this announcement is blatant “disruption” of the gold market. Gold down $10 in an instant.
on Fri, 09/18/2009 - 18:32
#74048
Gold standard
Gold standard
Gold standard
Wooh, I'm better now.
Gold may be available at a lower price in the future, but does this mean it should be sold right now? Of course NOT!
Worse case scenario, I will have some nice jewellery made in a few years! BLING BLING SON
on Fri, 09/18/2009 - 18:41
#74054
It will have no effect. It The sake is oversubscribed 10-fold.
on Fri, 09/18/2009 - 18:48
#74059
this credit crises seams to be morfing into a curcency crisis!
and we know the greenback has no back, but what's worst, is china will not "de-peg" from our dollar!
thus: "it's all bu''s'it!
evil ray
on Fri, 09/18/2009 - 19:15
#74080
Going back to the new set of fake bearers bonds in lombardy or the piedmont... Did you catch the name of the town?? Busto Asizio (busted and seized!) or something like that. Herb Caen is cackling in his grave! What a name. My in-laws are actually from somewhere near there... Very sleepy. I think this is just the weirdest story. No one wants to own it. WTF? Is this a huge dollar dump? I just don't understand.
Elsie
on Sat, 09/19/2009 - 12:47
#74405
The universe definately has a sense of humor. It feels to me like these bonds are not fakes.
on Fri, 09/18/2009 - 19:21
#74083
It has been estimated that, worldwide, the total amount of gold ever
mined is 152,000 metric tons, only enough to fill 60 tractor trailers.
In comparison, each year 907 million metric tons of iron are produced
worldwide. This is equivalent to 6,000 times the total gold produced
throughout history.
Source: http://www.amnh.org/exhibitions/gold/eureka/funfacts.php
This sale of 403/152000 metric tons = .26% of the world's gold
(yes, I know allot of this gold is "gone/consumed" with industrial and
jewelry production)
So, .26% of the world's gold will be sold... and that will crash the price how?
I guess selling it will make it disappear forever???
Or... this "new" amount of gold will "dilute" the value of the rest of this precious metal on the market?
Not in my opinion.
Interesting side note:
US Treasury-Owned Gold - What Would It Buy?
By Bill Zielinski on May 26th, 2009
Some Thoughts On The Value Of US Owned Gold
The United States Treasury Department recently issued a report on the total
amount of US Treasury-Owned Gold. As of April 30, 2009 the US Treasury
held a total of 261.5 million fine troy ounces of gold. The Treasury report
uses a book value of $42.22 per troy ounce to calculate the total value of
gold held at approximately $11 billion. Based on the current market
price, total gold holdings of the US Treasury amount to approximately
$238.5 billion.
Source:
http://mortgagedfuture.com/us-treasury-owned-gold-what-would-it-buy/
Amount of $US
There is about $829 billion dollars of U.S. currency in circulation;
the majority is held outside the United States.
http://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html
Since Aug 1971 (when Nixon took us off the gold standard), it appears as though
$590.5 Billion in paper notes have been printed, or ~$15.5 $US Billion per year.
No wonder we are so rich!! We make $15 billion per year! ;P
on Fri, 09/18/2009 - 19:32
#74091
Interesting news.....
on Fri, 09/18/2009 - 19:36
#74097
Wow, and I shorted silver today merely because of the technicals.
For once, the TPTB are trading with me. I feel dirty.
on Fri, 09/18/2009 - 19:59
#74108
http://market-ticker.org/archives/1448-OUTRAGE-TYING-IT-ALL-TOGETHER.html
on Fri, 09/18/2009 - 20:17
#74127
karl dude!
when's the last time you got of the house?
you need to get out in the sun more buddy.
your skin's looking a little too pasty.
get outside and take a walk thru sunny Niceville.
maybe that blood pressure will start to come down a bit.
on Fri, 09/18/2009 - 21:29
#74179
I watched that too. I thought he was going to rupture his spleen venting so hard.
on Sat, 09/19/2009 - 14:24
#74424
I like KD, I call him Mr. Hypertension.
on Sat, 09/19/2009 - 05:38
#74312
FWIW: ACORN helped me w/ my taxes. they were nice. I'm an actual poor person.
on Fri, 09/18/2009 - 19:59
#74109
Two buyers:
China (in exchange for some US Treasuries)
American Barrick - looking to buy out of 9 million ounces in hedges.
on Fri, 09/18/2009 - 20:17
#74125
I have some bearer bonds I bought in Chiasso from Japan's minister of finance. If I go to the IMF, can I buy all the gold that they have?
on Sat, 09/19/2009 - 14:25
#74425
Is this a trick question?
on Fri, 09/18/2009 - 20:16
#74126
Holy crap. Karl is more pissed than usual.
And right .... as usual.
Do you think the IMF would sell me 10 troy OZs at spot with no premium?
on Fri, 09/18/2009 - 22:03
#74201
haha I thought Karl's head might explode.......those red spots next to his nose got a lot redder........
on Fri, 09/18/2009 - 23:22
#74232
well, maybe it wasn't quite 330 years ago...
on Fri, 09/18/2009 - 23:55
#74242
Heard that too!
on Fri, 09/18/2009 - 20:37
#74148
well, how a coin looks sometimes is not so important as how much it weighs. it is one thing to be a coin collector and another to be a bullion buyer. just a thought....
trust me, in the days and years to come, you would be able to sell them all and nobody will give a hoot about dings, and imperfections etc.
now some coin sellers will try and tell you different, but it won't matter. for bullion, it is all about weight, not how a coin looks. people who run around talking about coin collecting with bullion coins etc, are just people trying to rip you off and wanting to make you pay more per oz than you should.
for example, they have a thing called 90 percent silver coins and all that means is pre 1965 silver coins. people call them junk silver. but when it comes time to sell, people will line up to buy it.
two good dealers to deal with are :
bullion direct out of austin, texas, and you can only deal with them on line and you can't talk to them or pick up your product. you just have to trust them to deliver and they do deliver albeit, sometimes their email responses are somewhat slow. if you want a live voice on the other end of the line, you can't beat franklin sanders, the moneychanger of tennessee.
on Fri, 09/18/2009 - 20:42
#74152
This is old news, at least 18 months old. Congress approved this earlier this year. It should have been factored in the market.
on Fri, 09/18/2009 - 21:36
#74181
Only television commercials now are for debt relief and gold jewelry buys.
Suddenly every country is denominating bonds in dollars and IMF is announcing (again) sales of gold reserves.
Those that state the currency risk is hedged (Why not denominate in any currency or home currency then?). The dollar is about to get bitch-smacked and every holder made to kneel.
Central banks fear the lemmings fleeing to a unit of scarcity beyond their control, so they use psych-op tactics and threats of sale of a mere $13 billion. What's that (GS bonuses for last month, 2% of TARP?). Bernanke's hot printing press must make the whole population dollar hostages for effect. Ruination must be equally borne.
Antiquity is littered with the corpses of clever but broke bankers. Gold was the bridgegap to the next viable economic island.
You don't backstop $23 trillion, buy your own debt, manipulate every conceivable market, lie repeatedly for effect, and then go on your merry growth way! BTW, you could buy every wage earner in the USA a new $200K home and BMW with that.
GOLD, GOLD, GOLD, forever. They are about to pull the trap door.
on Fri, 09/18/2009 - 21:49
#74190
With the dollar circling the proverbial toilet bowl, I'd sleep much better if the U.S. Treasury issued a few more bonds and bought the IMF gold for the US. The echos in the underground vaults at Fort Knox are really creepy.
on Fri, 09/18/2009 - 21:50
#74191
SIMPLE really---- JPM, BARRICKS, BARCLAYS, GS are all in the red on their gold short positions, with momentum gaining and the Chinse buying Gold would breakout...its either the IMF sell them the gold or the USA bailing them out a second time and a subsequent global financial crash.
on Fri, 09/18/2009 - 21:53
#74193
They are selling the gold so Barrick can buy it to cover their hedges for gold. This was too easy....
on Fri, 09/18/2009 - 22:34
#74217
$12 billion is chump change to the Chinese. They will buy this gold, like you buy a latte at Starbucks.
As for Karl, I was reminded of the movie "Scanners". As Beck would say, "blood shooting out of his eyes".
on Sat, 09/19/2009 - 00:13
#74249
So right you are. From Jim Willie CB:
"The IMF gold transfers are clear redemption of gold for USTBonds!!! The Chinese indeed have a bid under the gold price. They have decided to push the gold price over 1000. Perhaps they thought the time was right, after their orders to Obama not to reappointment Bernanke as USFed Chairman were ignored. Bernanke is banned from setting foot on Chinese soil. Obama takes orders from Goldman Sachs, not Beijing."
http://www.321gold.com/editorials/willie/willie091809.html
on Fri, 09/18/2009 - 23:51
#74241
We are in deflation. Gold price is coming down.
on Sat, 09/19/2009 - 00:53
#74264
Ok Prechter... All that wave counting has your head screwed on the wrong way ;)
on Sat, 09/19/2009 - 00:14
#74250
A shocking development, a bolt out of the blue sky.
April 7, 2008:
Strauss-Kahn applauds the idea of selling 403.3 metric tons.
http://www.imf.org/external/np/sec/pr/2008/pr0874.htm
May 6, 2008:
IMF says it will sell 403.3 metric tons of the Fund's gold holdings as part of its new income model.
http://www.imf.org/external/np/sec/pr/2008/pr08101.htm
July 6, 2009:
IMF says it's probably going ahead with the sale.
http://www.imf.org/external/pubs/ft/survey/so/2009/NEW070609A.htm
This gold will not hit the market. It first must be offered "directly to central banks or other official sector holders if there were to be interest from such holders." Any bets that the whole amount will not be subscribed to by central banks? Didn't China just build a vault in Hong Kong?
Anything not first sold to central banks will be sold "on-market in a phased manner over time." It won't be dumped on the market. Also, the amount being sold is not in addition to the maximum amount set by the central banks in their 5 year agreement (400 tons per year). It falls under that umbrella.
on Sat, 09/19/2009 - 01:43
#74272
They will fight to keep the price of gold down at all costs. If the gold price were to surge and become headline news, then the reality of central banks' debauchery of their currencies would become plain for all to see, and any further QE would become impossible.
The Chinese will continue to unwind their dollar positons as quietly and as quickly as they can without triggering panic, why wouldn't they? Part of the unwinding will consist of increasing their gold reserves, and to those who argue that gold has little intrinsic value, it sure has more intrinsic value than paper dollars. Further, if you hope one day to replace the dollar with the Yuan as the world's reserve currency, it does not hurt to hold very substantial gold reserves to give it credibility.
on Sat, 09/19/2009 - 02:26
#74288
Great article, greater comments. Actually I hope gold craters real bad, so I can add to my holdings. They can pull out all the tricks in the book and I couldn't care less. Physical gold, not some bs electronic position, is what I want, and I am only price sensitive with regard to big downwards movements, actual price-points are for goldtraders. Some others have mentioned it too, I think this is a (temporary) bailout by stealth for the USD. If USD goes higher there's a lot of worldwide unwinding to do, which is fine with me too. So the IMF announcement is excellent news.
on Sat, 09/19/2009 - 02:33
#74290
Most of the central bank "sales" are really just a recognition that "leased" gold can never be redelivered by the bullion banks. Central bank leases emptied out the gold vaults a long time ago, and the "sales" just orchestrate the orderly unwind of the bullion bank shorts.
China demanding physical delivery is like a huge margin call on gold against the bullion banks. The IMF is bailing them out by providing more physical gold for delivery to China, but that only works once.
on Sat, 09/19/2009 - 07:58
#74332
I strongly suspect that, were CBs not to intervene, that an orderly unwind of short gold (and especially silver) is not possible and what we could be looking at here is a VW style short-squeeze should China pull a Porsche and stand for delivery. Anyone have recent and credible numbers to support / refute this? (Need physical bullion status of the bullion banks).
Will know for sure when Dec delivery comes around (possibly Sep). Most likely scenario is that the BRICs don't unleash PM armageddon on the west, but instead play this out over a few years. Still, that provides some long term price support.
We will know the BBs are back in control when ABX re-establishes its hedge at a higher price. CBs have more than enough gold (1 billion ounces) to save BBs that wind up in trouble, question is how willing they will be to save given that the physical gold they lose is not coming back for many many years.
on Sat, 09/19/2009 - 04:42
#74296
This is different from previously announced sales. This time the IMF is actually selling, straight to China no doubt, or to London where the scammers got caught short when China demanded allocation to Hong Kong.
BRICs must have threatened to stand firm for delivery at the end of the month and the BBs think it's not a bluff. Also explains why ABX panicked so badly. There is no other explanation.
If the BRICs stand big then the BBs are fucked, regardless of what the IMF does. Potentially, even if CBs come in for the stick-save, the BRICs still have the capital and the stones to clean them out, leaving a bunch of vaults full of paper IOUs.
Needless to say, the banksters will find a cheap out. One huge advertising campaign for the paper ETFs coming up!
http://www.zerohedge.com/article/guest-post-what-heck-going-china#commen...
http://www.zerohedge.com/article/who-going-buy-gold#comment-61453
http://www.zerohedge.com/article/does-gold-already-price-future-inflatio...
http://www.zerohedge.com/article/barrick-gold-conundrum#comment-68641
on Sat, 09/19/2009 - 04:44
#74300
http://khqqdw.bay.livefilestore.com/y1pEgfvCOroxNFiJlLMuG5P9pCMxgwImKMm5...
Dollar looks like it's going to do a bit of attention whoring to take some focus off of gold.
Bet she puts on her best blonde wig.
http://www.youtube.com/watch?v=kO6qrtSTkew
on Sat, 09/19/2009 - 04:49
#74302
They are in a very, very tight spot eh?
on Sat, 09/19/2009 - 05:02
#74303
As I understand it the IMF announcement was made in March or April already, so this is nothing new, only intended to get things moving. Higher equity in combination with lower USD was and is utterly ridiculous, ponzi to the max, and the Chinese (generic, its everyone, the Ruski's, the Arabs, anyone sick of their USD holdings getting wiped out versus normal currencies) are totally fed up with it. However you dice and slice it there are abnormal quantities of USD shloshing around, so how they are ultimately going to solve that problem is beyond me. If it plays out short term how I think the USD catches a bid, carry will be unwound, equity will drop, gold will drop (enabling shorts te unwind) and treasuries will go up. Not necessarily all together at the same time, dislocation is that great in almost all asset classes that I can not pinpoint exact movements, but broadly that is my scenario over the coming 2-3 weeks.
on Sat, 09/19/2009 - 07:22
#74329
Yes, the IMF have been doing this time and time again. Whenever the price action gets a bit bullish, the IMF threaten sales. Old story.
Difference this time is that they are actually selling.
Up until recently, I agreed completely with your general prognosis, that eventually the Fed would have to rescue the dollar, ease up on QE, trigger an equity collapse and flight to safety in order to gather enough foreign interest in treasuries to lubricate stimulus 2.0
The Fed's reckless disregard for the dollar and BRIC action recently makes me a little less sure. Perhaps we will see aggressive global competitive devaluation afterall, with a PM panic as players seek protection. Still lean towards your scenario, the latter may be a head-fake, but have hedged accordingly.
on Sat, 09/19/2009 - 06:38
#74323
Whew! ....Finally. I am so sick of that story. Jesus, talk about beating a dead horse.
on Sat, 09/19/2009 - 07:58
#74338
I've been buying my Pyrite on eBay for the last 6 months.
--Mrs. Madoff
http://cgi.ebay.com/30-FLAWLESS-PYRITE-SUN-ALL-WITH-AMAZING-LUSTER_W0QQitemZ310168256940QQcategoryZ3226QQcmdZViewItemQQ_trksidZp4340.m263QQ_trkparmsZalgo%3DSIC%26its%3DI%252BC%26itu%3DUCI%252BIA%252BUA%252BFICS%252BUFI%26otn%3D5%26ps%3D63
on Sat, 09/19/2009 - 09:23
#74356
what in numbers are the national debt, interest on the debt, the revenue & expenditure.
on Sat, 09/19/2009 - 09:26
#74361
One of the most disturbing aspects of this "announcement" is that the media is treating it like it's NOT been made at least half a dozen times over the past couple years -- same announcement, same amount !
Media collusion in govt corruption gets more blatant every day........
on Sat, 09/19/2009 - 10:08
#74371
""But so corrupt was every department of the administration, that the country benefited but little by the sums which thus flowed into the treasury. Courtiers, and courtiers' wives and mistresses, came in for the chief share of the spoils. One contractor had been taxed in proportion to his wealth and guilt, at the sum of twelve millions of livres. The Count * * *, a man of some weight in the government, called upon him, and offered to procure a remission of the fine, if he would give him a hundred thousand crowns. "Vous etes trop tard, mon ami," replied the financier; "I have already made a bargain with your wife for fifty thousand.""
Popular Delusions by Charles Mackay
on Sat, 09/19/2009 - 11:23
#74378
Funny thing. The IMF could sell all the gold they have, they could dump all 3200 tons they have on the market all at once,
and it would only make a dent in the price for a short while.
I'm sure they'd like you to think it would have a powerful long term affect, but it won't.
4,864,000,000 ounces of gold in the world.
We each get one. :)
on Sat, 09/19/2009 - 12:22
#74397
The IMF selling gold is like a wrestler selling his muscles.
Banksters. Scum of the earth.
on Sat, 09/19/2009 - 12:36
#74398
I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of the order:
IMF lowers the price of Gold to $250 then, Obama declares it illegal to hold and pays you the going rate. It happened before
on Sat, 09/19/2009 - 13:07
#74409
The age of non-materialism is coming. Your wealth will be measured by your creativity, knowledge, and ability to love. Get ready.
on Sun, 09/20/2009 - 11:56
#74920
eeeek. stop it you're giving me the creeps.
on Sat, 09/19/2009 - 13:57
#74417
One eighth? Holy Cow.
"The reason: to continue providing lending to the poorest countries."
To quote Marla "Here comes an avalanche of Bullsh!t"
on Sat, 09/19/2009 - 14:11
#74421
This was already baked into the cake Friday morning. From Briefing.com:
10:42 ET 10-Yr: -14/32..3.441%%.. USD/JPY: 91.35.. EUR/USD: 1.4705
on Sat, 09/19/2009 - 17:59
#74530
This may be where the dollar and gold couple in terms of price action.
The conventional wisdom is that the buck will recover from here triggering a market collapse, sending gold down with the market.
We may see gold go up with the dollar as there is a flight to quality, and the flight to higher quality may get pushed more.
on Thu, 09/24/2009 - 08:07
#78378
my first post here, i have nothing to add just can't resist testing my account, so i post silly little pic for the goldbugs
http://i34.tinypic.com/2rnkmz5.png