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IMF Sells 15.1 Metric Tons Of Gold In April, 152.1 Tons For Sale Remaining As Russia Keeps Waving It In
The IMF has announced its gold reserves declined to 2,966.4 in April from 2,981.5 tonnes in March, a 15.1 ton decline. And while the IMF sold well over half a billion worth of gold in April, Russia was once again taking advantage of what some are calling firesale prices, bulking up its gold holdings by 5 tonnes, which increased from 663.7 to 668.7. Russia has now been adding gold every month since February. As has long been known, in 2009 the IMF announced it would sell 403.3 tonnes of gold, of which 212 was purchased in prearranged deals by India, Mauritius and Sri Lanka. This means the IMF, after accounting for all disclosed sales, has 152.1 tonnes of gold left to sell from its original quota. Bloomberg discloses who has been doing the most buying recently: "Central banks and governments added 425.4 tons last year to 30,116.9 tons, the most since 1964 and the first expansion since 1988, data from the World Gold Council show. Official reserves may expand by another 192 to 289 tons this year, according to CPM Group, a research and asset-management company in New York." Keep your eyes on Russia: "Russia’s central bank bought 142.9 tons of gold last year, raising its holdings of the metal by 29%, RIA Novosti reported last month, citing Bank Rossii’s annual report submitted to parliament."
Gold is taking the news in stride.
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bbbbut if gold is a hedge against uncertainty and the economies are improving why would governments and banks be increasing their holdings? Everything isn't ok?
Gold is the opposite of trust. Central banks do not trust each other, much less the make-believe assets on their (and everyone else's) books.
They buy for the same reason that we do; to reach the other side of this thing with something left from which to rebuild.
That's right but....
Not everyone that buys gold is an armageddonist. What about the fact that it is a fundamentally good investment. Period.
You need gold when you fight world wars. No one will take paper. So, they are hedging the uncertainty of war and stockpiling.
It's as if the Russians have already seen things hit the fan before.
Indeed; in recent memory.
They've suffered through some bouts of very high inflation since the collapse of the USSR. See the current post to
http://www.newworldeconomics.com/
for details.
"All is mine", says gold;
"All is mine", says steel.
"I buy all", says gold;
"I take all", says steel.
Alexander Pushkin, Russian poet, in 1826. My translation. I would've pasted in the Russian but it came out garbage. Here's the link: http://www.rvb.ru/pushkin/01text/01versus/0423_36/1826/0431.htm
in russia, gold buys you!
what a country!
Gold, comrades!
Someday, they're going to look back and label Ben Bernanke as the stupidest man on earth circa 2010.
Oh no, he's very aware of what he's doing. Very deliberate. And his friends really appreciate it.
Who is "they"? "History is a set of lies agreed upon”... for you to be right, the good guys have to win, no?
Someday, a few members of the sheeple will look back, after they understand what fiat money and FRB have done to them (stolen the wealth they tried to produce for themselves and their families), and then they will start sharpening up the guillotine blades.
Which makes Time magazine the stupidest magazine on earth ca 2010.
OK, no argument there.
It seems his "Someday" has already arrived. JMHO
or...
someday folks are going to look back at the US populace and label them as the stupidest population on earth circa 21st century... for our allowing the likes of Ben Bernanke to drive us all over the ...
$1289 is on the way
IMF? We're *laughing* at the superior intellect.
It will be taken down 2-3 days before options expiration.
So on the 25th/26th I suggest going short.
The pattern repeats itself every month this year, and if the price rises above the previous high you can be 100% sure that gold will once again drop 3-5% from that new high, just to make options worthless.
Based on Andrew Maguire's letters to the CFTC re: silver manipulation by JPMorgan, I'm inclined to agree with you.
In the long run, however, I also believe that the establishment's ability to suppress gold is becoming less effective over time. I forsee a breakout that will cause a lot of pain for the net short bullion banks in spite of their best efforts, prompting a situation similar to when Gordon Brown sold half of Britain's gold reserves to bail out AIG and Rothschild in the 90's. This time around, however, it will probably be the IMF trying to talk the market down. With only 152 tons left in the IMF's arsenal, however, and with other Central Banks becoming net buyers, I think the market will call the manipulators' bluff, and continue to buy.
It's the principle of diminishing returns. Strategies become less effective over time.
Agree. If you look more closely at the market [gold] in those days when gold is in free fall there is a lot of struggle going on to keep it below the strike price. That was the case last month, and I really thought that LBMA will not manage to pull it of and keep it below 1200, but they did.
They will have problems with this scheme and when it blows, it will blow hard. My guess is [since LPMCL doesn't publish any data] they use derivatives and fractional reserve mechanism to short the market. Its hard for me to believe they are shorting it via physical stuff; much easier to do it with instruments [and less costly].
Where did the IMF get all that gold? It wouldn't be from Fort Knox would it?
thought they changed the name to Fed Knox?
Where did the IMF get all that gold? It wouldn't be from Fort Knox would it?
Some of it, yes. The IMF's gold comes from its member nations, of which we are the largest at I believe 17%.
Thanks Packman. Still not sure why they gave the IMF gold instead of USDs? I thought gold wasn't money?
Don't worry it was probably tungsten!
LOL.
Still not sure why they gave the IMF gold instead of USDs? I thought gold wasn't money?
Apparently the IMF are suckers.
In the end it probably depends on who one believes has the real power, and will have it going forward. If it's the US/UK/EU banking conglomerate - then buying gold is probably foolish since the conglomerate is pushing harder and harder away from gold and towards fiat money.
agreed - but then i think of Gandhi vs. the Brits...
the governments can push hard, and even violently, towards fiat rubbish, but it's the compliance of the masses that seems to prevail over time.
if enough of us refuse to engage their scam, the scam will eventually fail.
it's no accident that the US healthcare bill forces everyone to push IRS 1099s around every time we exchange more than fifteen cents... folks are bartering on a grander scale than ever, and the gub'mints all know it... but there's really very little they can do.
we know what happens when the folks don't trust the government... not much.
we're soon going to find out what happens when the government doesn't trust the folks.
"if you're not nervous, you're not paying attention"
So the BRIC economies are buying bricks like crazy, and the rest are selling it.
Hmmm...
These are the same economies we're becoming increasingly reliant on for goods - and to a large extent the purchase of our debt - are they not? As such, seems like these economies are building a bit of a... hedge... against something.
The Euro PPT is doing a bangup job again this morning.
$/Euro has moved 2 handles in last hour!
The peak of central bank dishoarding at Brown's bottom/$250oz proved a good time to buy.
http://www.telegraph.co.uk/topics/christmas/3545223/Caganers-figurines-of-defecating-world-leaders-in-Catalan-nativity-scenes.html?image=3
The disposal of junk bond S&L assets by the Resolution Trust Corp was a distressed securities bottom.
The central bank reserve diversification out of dollars into euros was poorly timed.
The Bush admin topped off the Strategic Petroleum Reserve at $150bbl (the Chinese have managed
their oil reserve purchases considerably better.)
Seems central power asset management signals a better fade than smart money coat-tailing.
"Central banks and governments added 425.4 tons last year to 30,116.9 tons, the most since 1964 and the first expansion since 1988, data from the World Gold Council show."
This does not seem a bullish factor, GLTA.
Everybody wants you.
http://www.youtube.com/watch?v=XhOZL21g2aE
this is all very interesting... but
to the little guy, what's the difference between the IMF/ECB/FED et. al. having large sums of gold, vs the 'local' government (Russia, US, China, etc.)? sure, this may determine who the holder of the next reserve currency is (SDRs not-withstanding), and who has who over the proverbial economic barrel, but there's still a big-ass brute holding the gold and determining its market value...
relative to us sheeple... new boss, old boss, same ol' same ol'
it's whether or not my neighbors have gold and want gold that concerns me.