You're now on the archive server. Commenting has been disabled.
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.
»
- 14836 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- A Very Different Take On The "Iran Barters Gold For Food" Story
- Morning Gold Fix: July 19, 2010
- Strauss-Kahn Does Not Have Diplomatic Immunity
- IMF Announces Receipt Of Bail Out Request From Portugal: "First We Take Your Money Gringos..."
- IMF Seeking Boost In Lending Cap By $250 Billion To $1 Trillion
Uh, everybody out of the POOL !
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.
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!
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.
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.
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?
Is that a prayer?
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?
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...
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.
"and may have already."
A very good bet IMO also.
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?
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.
Correct.
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.
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.
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
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.
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.
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.
The old stuff- numismatic gold- has appreciated much faster than bullion so far.
try Tulving.com - no frills service and fully vetted - transacted in both silver and gold with them.
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.
Ha, how ironic. I'll bet they're doing a brisk business these days amongst the bankers.
I am Chumbawamba.
I have used Gainesville coins as well as APMEX. Had good experiences with both.
Agreed, I've bought from both and had good experiences. I've also good experiences with Franklin Sanders' The Moneychanger.
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.
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.
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.
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.
Sell on the News? Even if it's IMF lying news?
This is not news.
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.
See my post #73951 below. Congressional approval was obtained in June.
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.
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
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.
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
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.
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.
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.
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.
<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
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.
You are absolutely right, it will hold its "value". But not its "price".
Yeah- they will distort the price for awhile, but eventually it will catch up to its value...
i am glad you agree....
problem is is that imf will not sell any gold...
this was a press release for fools...
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.
actually its 11 666 666,7 ounces troy.
auf wiedersehen
swizz bank krew
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
Not so cool... for the amount it costed to set up that ridiculous "welcome" they should have showed at least a nip.
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?
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....
Actually they're selling calls on GLD.
Is that just a random comment or are you certain that they are actually selling calls on the GLD?
Smart. Buy Low; Sell High
I think they are going to make a killing on this trade.
If you mean the IMF, I agree with you.
will China offer to buy some portion of that ?
If China sez they are buying...THEY ARE SELLING !
Like copper, iron ore, commodities, Austrialian mines?
Go to the back of the class, dork.
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 ...
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.
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?
you betray an astounding ignorance of gold and
money...
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!!!!!!!
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.
Most definitely!!!!!!!!!!!! (except more Treasury's instead of "greenbacks")
That's got to be it--
That makes a lot more sense than the IMF story.
~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
Well they have doubled there money, IF they can get $1K an ounce. So well done IMF!
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.
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.
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..
and your documentation for that statement is?
Well done IMF? Double the units of currency at half the purchasing power looks like break even to me.
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...
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!
double post
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?
This is pretty significant and marks the beginning of the end for the IMF.
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?
They are trying to control inflation indicators politically. Buy on the dip
That was what I was thinking, buy on the dip if it shows up.
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...
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
Is this actual sales of PHYSICAL gold or are they leasing it? Sorry you have to ed-u-ma-cate the NOOB...
Actual sale of gold, not a lease.
ABX hedges. Who's your daddy?
http://www.zerohedge.com/article/barrick-gold-conundrum
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%
Who cares?! Who's selling? My local coin dealers haven't had silver in any quantity all year.
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?
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.
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.
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.
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.
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.
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.
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.
I think they need US Congress approval before they sell even one ounce. That should be interesting...
Oops. Congressional approval passed in June. Must have been fishing...
IMF Board Approves Sale of 403.3 Metric Tons of Gold (Update1)
Share | Email | Print | A A A
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
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.
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.
Is it irony, or coincidence, that the amount is almost exactly the same as Barrick's hedge book?
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.
"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."
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...
ECB may have bailed out DB in a smiliar manner earlier this year.
http://forums.opendemocracy.net/node/48774
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.
take delivery = short squeeze; we'll know they've defaulted when they change the delivery rules.
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).
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.
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.
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.
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.
They disappeared. With PDF's of thier passports running around the web. Really? Known bond forgers can just disappear?
Umh, no. They are authenticating them for a Swiss bank
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....
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.
Really? I'd cash it and buy gold and silver with it. Fuck.
I am Chumbawamba.
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.
gold will open down $40 on Mon.
If the dollar raises a couple basis points. LOL
I wish.
I am Chumbawamba.
Gold bugs gone wild!
Did you really buy the "1300" an ounce hesis?
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.
Interesting that JPM and GS have layerd on record shorts in gold/silver. Inside info.?
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.
Why would anyone bet aganst GS and JPM? What is your edge?
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.
"King Canute" - good stuff, a Williesque analogy.
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).
Hey guys, were the reserve debt to become mmmm not reserve anymore, what would the only ticket to see such a show look like?
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?
> Kind of like the ultimate hedge, really?
Oh yes - thats sweet.
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.
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
It will have no effect. It The sake is oversubscribed 10-fold.
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
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
The universe definately has a sense of humor. It feels to me like these bonds are not fakes.
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
Interesting news.....
Wow, and I shorted silver today merely because of the technicals.
For once, the TPTB are trading with me. I feel dirty.
http://market-ticker.org/archives/1448-OUTRAGE-TYING-IT-ALL-TOGETHER.html
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.
I watched that too. I thought he was going to rupture his spleen venting so hard.
I like KD, I call him Mr. Hypertension.