• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Meet The Latest Converted Gold Bug: The IMF

Tyler Durden's picture




 

When wonkish blogs suggest gold ownership as a hedge for the political idiocy of the world, it is mockingly shrugged off. When the BRICs add gold, it is eschewed in a 'well, its diversification' argument. But when the bankers' bankers' bank - The IMF - starts adding Gold to its reserves to cover higher expected credit risk losses (read major devaluations of fiat currency exposure), perhaps - just perhaps - the 'rationality put' we noted earlier is becoming a little more expensive in the minds of Lagarde and her colleagues. As Bloomberg News reports, “The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis,” the IMF staff wrote in a report released today, adding "there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks,” and as CommodityOnline added: "The International Monetary Fund (IMF) is planning to purchase more than $2 billion worth of gold on account of rising global risks. The IMF currently holds around 2800 tonnes of gold at various depositories".

The IMF announced in February 2010 that phased sales of gold on the market would be initiated shortly (after proposing the initial 403.3 ton sale in September 2009. At that time, a total of 191.3 tons of gold remained to be sold, following the sale of a total of 212 tons to three central banks during October and November 2009.

 

Chart: Bloomberg

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Mon, 05/14/2012 - 11:55 | 2423910 xela2200
xela2200's picture

JPM is also dumping their silver shorts. This summer is going to be a hot one.

Mon, 05/14/2012 - 11:54 | 2423937 dereksatkinson
dereksatkinson's picture

And you know this how?

Mon, 05/14/2012 - 12:05 | 2423981 MillionDollarBonus_
MillionDollarBonus_'s picture

OMG! The ten year yield just hit 1.78%! Meanwhile, gold is getting hammered.  I’ve said it before, and I’ll say it again: US Treasuries are the ONLY true safe-haven asset. Don't doomer goldbugs ever get tired of being wrong?

Mon, 05/14/2012 - 12:06 | 2423995 xela2200
xela2200's picture

lol

We have been wrong for 10 years now. I guess we never learn.

Mon, 05/14/2012 - 12:38 | 2424103 Harlequin001
Harlequin001's picture

I guess that's why gold and silver are going down then, because the IMF wants it cheap.

and a lot cheaper than it will be very shortly...

Mon, 05/14/2012 - 12:48 | 2424137 Hugh_Jorgan
Hugh_Jorgan's picture

BINGO!! Give that man a cupie doll.

Mon, 05/14/2012 - 12:50 | 2424146 Harlequin001
Harlequin001's picture

I don't play with dolls, thanks. Have you got any coconuts?

Mon, 05/14/2012 - 12:55 | 2424177 akak
akak's picture

If it is retarded algebraic coconuts that you desire, our dear dishwashing friend AnAnonymous can supply you with all you need.

Mon, 05/14/2012 - 12:59 | 2424187 Harlequin001
Harlequin001's picture

AnAnonymous - He's not your best pal is he?

Mon, 05/14/2012 - 13:11 | 2424213 akak
akak's picture

On the contrary --- I simply treasure his presence here on ZeroHedge!

Where would I get my daily laughs ("Make me laugh!") otherwise, if not for his constant nonsensical and hypocritical gibberings about "US Citizenism"?

Mon, 05/14/2012 - 13:13 | 2424233 skepticCarl
skepticCarl's picture

And many of get our laughs at posters who get spun up by personalities, rather than content.

Mon, 05/14/2012 - 13:21 | 2424251 akak
akak's picture

If you are implying that I am one such, then you clearly have not been paying attention --- it is precisely his bigoted and collectivist, one-size-fits-all condemnations of EVERY American for the actions and crimes of our power elite that "spin me up", not his personality (which is robotic and quasi-autistic in any case).

Mon, 05/14/2012 - 14:01 | 2424358 Paul Atreides
Paul Atreides's picture

"They are trying to sell this idea that gold goes down on the ‘risk off’ trades that we are experiencing now. And that the ‘risk off’ buyers all go running into the US dollar and the US bond market. I think those are two of the riskiest things on the planet. But somehow they are still getting this ‘Pavlovian response’ that when things are bad out there, you should sell your gold and buy US bonds. It’s ridiculous." - John Embry May 14th Kingworldnews

Mon, 05/14/2012 - 14:22 | 2424394 Xkwisetly Paneful
Xkwisetly Paneful's picture

Yet another neon flashing sign to be ignored.

Really can't think the IMF is anything other than squarer than the day is long when it comes to timing investments?

JFC did you even look at the chart? They were net sellers from what $800-$1200?

Squint a little-it is flashing neon-fade this.

Mon, 05/14/2012 - 14:29 | 2424458 akak
akak's picture

Really, you are hilarious in your mindlessly contrarian comments here. You sound no different than all those blinkered and/or dishonest fools who kept predicting the "imminent" and long-term collapse of the price of gold at $500 ... and at $600 .... and at $800 ... and at $1000 .... and at $1200 .... and so on and so forth.

The price of gold, and of silver, and of EVERY other tangible, physical asset will only continue to rise as long as world governments continue sinking ever deeper into debt, and as long as world central banks continue monetizing that debt under whatever flimsy and laughably transparent excuse they can.

Seriously, are you Jon Nadler himself?

Mon, 05/14/2012 - 14:32 | 2424477 Best Satan in Town
Best Satan in Town's picture

You're such an obvious shill.

Mon, 05/14/2012 - 14:43 | 2424513 Xkwisetly Paneful
Xkwisetly Paneful's picture

What's the use in being a contrarian?

Stimulus sent just about all asset classes to eye popping levels.  Gold, silver not special unless we do the usual and temporarily suspend disbelief.

No use in being a contrarian, a total waste of time.

Future demand and it's orgins have zippo, nada to do with future prices.

The retail trader cashing out of the equity markets month after month after month at record pace isn't future demand.

The retail trader being nose deep in silver and gold has nothing to do with anything.

Gold and silver being the first to be liquidated should shit hit fan again to meet margin,

doesn't really insure failure here it only makes it significantly more likely than not.

Oh inflation's coming, sure it is, it always is coming and for some strange odd reason although it is always coming gold and silver have perpetually underperformed since the creation of the central bank system, so fucking weird.

GAMBFA nit imbecile.

 

 

 

Mon, 05/14/2012 - 15:13 | 2424548 akak
akak's picture

 

Oh inflation's coming, sure it is, it always is coming and for some strange odd reason although it is always coming gold and silver have perpetually underperformed since the creation of the central bank system, so fucking weird.

Yes, you're right: inflation IS here, just as it has ALWAYS been here since the creation of the criminal and parasitic world central banking system.  Thank you for stating the obvious.

As for gold and silver "underperforming", I first must ask you, shill, "underperforming" compared to what?  Compared to the ever-depreciating fiat currencies issued by your beloved criminal central banks, they are manifestly ahead of the game, having risen more than fiat currencies have fallen over the past 10, 40, or 80 years.  Compared to stocks and bonds over the past ten or twelve years, they have VASTLY outperformed such paper assets.  But "performance" is not really the point for holding the precious metals, preserving one's wealth being the goal, a role which the precious metals have NEVER failed to perform in hundreds of currency debasements and collapses throughout monetary history.

You are really quite an imbecile, aren't you?  In fact, so imbecilic is your every post that I am beginning to suspect that you are just another debate-baiting sockpuppet of Tyler, masquerading as a clueless poster here on ZH just to generate controversy and therefore discussion in these threads.

Mon, 05/14/2012 - 17:26 | 2424932 fuu
fuu's picture

He won't answer you, his work was done after hitting "Save".

Mon, 05/14/2012 - 17:30 | 2425019 Xkwisetly Paneful
Xkwisetly Paneful's picture

Generate discussion? What? WHo wants discussion here? Not you and certainly not the rest of the insecure largely self loathing crowd who comes here for reaffirmation and cyber blowjobs multi times a day.

 

Because the only assets on earth are gold and silver or paper money.

Hard to be so incredibly dull.

Yea won't answer,  ignored 3/4's of the post to regurgitate the same old, same old.

Meanwhile gold and silver have dramatically underperformed just about every asset class on earth since the creation of the central bank.

Nit imbecile, if I wanted to mirror you, I would just point out how ludicrous your post was about all tangible asset prices increasing all the while US homes are tangible assets that are obviously not increasing in price.

But I am not a nit imbecile such as yourself.

 

 

Mon, 05/14/2012 - 17:51 | 2425079 Xkwisetly Paneful
Xkwisetly Paneful's picture

it outperformed putting money under a mattress?

Hysterical.

 

 

Mon, 05/14/2012 - 18:44 | 2425154 akak
akak's picture

 

 

Your trite, specious, irrelevant and repetitious bullshit is unworthy of further response.

Wed, 05/16/2012 - 02:10 | 2430519 MeelionDollerBogus
MeelionDollerBogus's picture

HEY

You forgot to tell him to get off the porch because he's too fucking blond.

Calm as Hindu cows

Wed, 05/16/2012 - 02:05 | 2430509 MeelionDollerBogus
MeelionDollerBogus's picture

If you were a legit contrarian instead of MDB-clone-of-a-clone, you'd argue how gold-leasing multiple times per-bar will end or argue how energy prices will go down for miners instead of up. Until then you're pissing in the wind.

Wed, 05/16/2012 - 02:03 | 2430504 MeelionDollerBogus
MeelionDollerBogus's picture

Idiot. The IMF doesn't time markets, it MOVES Them.

It doesn't INVEST In shit, it STEALS.

Mon, 05/14/2012 - 12:09 | 2424001 Lost Wages
Lost Wages's picture

TIPS bitchez.

Mon, 05/14/2012 - 12:16 | 2424025 ATM
ATM's picture

TIPS - worst piece of shit, deceptive scam ever invented.

Mon, 05/14/2012 - 14:19 | 2424436 Temporalist
Temporalist's picture

Here's two tips: buy gold and silver.

Mon, 05/14/2012 - 12:19 | 2424039 xela2200
xela2200's picture

Any Investment that pays based on some government statistic is absolute crap.

Mon, 05/14/2012 - 14:15 | 2424410 margaris
margaris's picture

TIPS another trap to keep people away from gold.

 

TIPS backwards = SPIT.... enough said.

Wed, 05/16/2012 - 02:00 | 2430500 MeelionDollerBogus
MeelionDollerBogus's picture

Bitchez, bitchez. You can get an easy 10% skim gettin them girls to work on time. Secure income-flow through any currency collapse :D

Mon, 05/14/2012 - 12:11 | 2424010 SILVERGEDDON
SILVERGEDDON's picture


I find it interesting that MDB, your initials, stand for Money Diversified Badly. Truly fitting, given your propensity for trolling the evils of metals, and the divine properties of fiat paper. Gold was $28.00 an ounce when I was a kid. Silver was worth whatever it said on the coin it was minted with. There have been several financial melt downs burning the market and paper investment in half or worse during that period of time, taking all paper to hell in nothing flat. Timing the market to cash out into fiat currency that has been reduced to less than two percent of it's buying power over the last fourty years is stressful, and risky. I'll take my chances on the metals, thanks. Now go shove a gas soaked rag up your ass so I can light it on fire, and watch you dissappear into the distance, trying to out run the heat. At least you will be more entertaining that way.

Mon, 05/14/2012 - 12:26 | 2424062 xela2200
xela2200's picture

He likes to be the clown in this forum.

Mon, 05/14/2012 - 17:16 | 2424988 Jack Napier
Jack Napier's picture

There are enough clowns on the payroll. I for one have no respect for anyone who knows what is going on and tries to get a laugh at the expense of people being robbed and dying by the wayside. Fucking clownshoes is right.

Mon, 05/14/2012 - 12:12 | 2424018 ATM
ATM's picture

It's only the initial rush to what is perceived as a liquid safe haven. 

When the dollar (UST) is exposed as just another worthless fiat currency the real rush to a very small gold market will truly begin. Reality hasn't sunk in yet with regards to all fiat currencies.

Money is flowing uphill to the dollar because it's currently the global money but the US will print to oblivion as the europeans will too. Only the US will do it last because every other fiat holder will rush into $ only to be ultimately wiped out by the Bernenk.

You confuse this safe haven move as a sign of strength. It is only a sign of liquidity. eventually all those dollar holder will rush into something else as the dollar collapses via the printing press. You tell me where those dollars will go if not into real things.  

Mon, 05/14/2012 - 12:35 | 2424092 Chump
Chump's picture

Hard to say, really.  What percentage of dollars exist as 1s and 0s?  Those will go "poof" and not rush into anything.  They will simply cease to exist with the same ease as they came into being.  For a very short while, having actual dollars in your hand will be to your advantage, until people realize that potable water and food trump everything.

Commodities during that time period will not be bought with any currency, unless we want to play semantics and define 'blood' as a type of currency.  In that sense, I can certainly foresee bloody hyper-inflation.

Mon, 05/14/2012 - 12:47 | 2424138 Quinvarius
Quinvarius's picture

No.  The digital money won't go "poof".  It will multiply like Tribbles, as it always has.  You cannot have deflation on a debt based fiat currency system.  It causes hyper inflationary collapse because people default on the debt which backs the currency.  That means no demand on the money.  And the money will not hold its value because it has no intrinsic value.  BTW, that is what we are about to experience if The Bernanke can't get his sh!t together and learn the difference between scraps of paper and gold. 

Mon, 05/14/2012 - 13:18 | 2424247 Chump
Chump's picture

If people (and corporations, and sovereigns) default on debt, and said debt is the basis for the fiat currency system, then you have succinctly described a deflationary collapse.

And yes, the digital money will go poof.  As in, "look, my BoA online account says I have $850.00 in my account, but when I go to the ATM it tells me to go die in a fire.   Men with guns won't let me through the bank doors."  Poof.

Mon, 05/14/2012 - 13:39 | 2424296 A Nanny Moose
A Nanny Moose's picture

But some nice lady in a PSA told me my money was safe because of the FDIC.

If bank accounts go poof, people go hungry. People go hungry they start playing with pitchforks and torches. I just don't see deflation being allowed to occur.

We've revalued before. We will revalue again. The bond market is subservient to the nice people with all the guns.

Mon, 05/14/2012 - 15:29 | 2424651 ffart
ffart's picture

Debt isn't the basis of a fiat currency system, the collective labor of the issuing nation is. It's literally the government borrowing from your future productivity and lending it to you at interest. Under those conditions, deflation will never be anything more than a theory since geometric decay is guaranteed.

Wed, 05/16/2012 - 01:55 | 2430497 MeelionDollerBogus
MeelionDollerBogus's picture

No, the other guy was right. sorry.

Debt is issued and then citizens are told to pay it. There's no counter-party assurance it will be done. People could work less, leave, hide, pretend to die or go to barter instead of paying taxes until they are shot, rounded up, put in work camps aka for-profit-prison, etc.

That's a lot of overhead losing the gains of the collective labor attempted by force to match the debt.

Without the initial debt (deficit financing & fractional reserve banking) there is no such inducement to try to take collective slave-control. There is no incentive, intent or inducement for the public to voluntarily work to back the debt-currency and it did not exist without debt. You show me which part of the currency exists without debt and I'll show you its fungible with the parts that ARE and that makes them all equal.

Wed, 05/16/2012 - 01:52 | 2430490 MeelionDollerBogus
MeelionDollerBogus's picture

Game of Thrones did it for you:

the "iron price" or the "gold price"

the Iron price being whatever iron you use to harass, hurt & kill whoever has your gold because it's yours once they're out of the picture.

Mon, 05/14/2012 - 12:15 | 2424031 Fred Garvin
Fred Garvin's picture

2 billion dollars worth of gold at $1560 and ounce, that comes out to roughly 40 tons of gold. Doesn't seem like much compared to the amount of bullshit you are selling...just sayin'

Mon, 05/14/2012 - 12:50 | 2424155 Quinvarius
Quinvarius's picture

If they are buying, it is because someone else with clout asked them for delivery.  Whatever they say is horse manure.

Mon, 05/14/2012 - 12:33 | 2424085 lasvegaspersona
lasvegaspersona's picture

yum yum MDB... paper that pays 1.78%. If I had a huge stack of that I'd feel really secure. I'd know that no matter where I went anyone would love to have my pretty paper that had a yield like that!!!

dufus...folks are holding that shite because they do not know what else to do. If interest rates go up...it becomes worthless. If they don't go up it means we are stuck in Bernacke hell which unlike the hell of most religions will not last forever. In the end these treasuries will never yield anything. They are just a very dangerous parking spot for the ignorant. No rational actor would use that vehicle for holding funds and no one EVER would be excited about the yield.

The price of gold of which you speak is not gold's true price (try buying a few hundred tons, betcha have to pay a lot more) it is the paper price, which, for the time is also the price of physical (a sincere thanks to Ben Bernacke for keeping the price low for the time). Soon MDB there will be a divergence. Paper will become worthless and physical will become very hard to get.

Mon, 05/14/2012 - 12:34 | 2424087 narnia
narnia's picture

here's the link to a 5 year chart of the the Greek 10 year bond

http://www.bloomberg.com/quote/GGGB10YR:IND/chart/

Mon, 05/14/2012 - 12:52 | 2424160 Storm Bringer
Storm Bringer's picture

It is the safe haven until the bond hawks come to roost..... they are currently too busy with Europe now, but come to roost they will; and your treasuries will be worthless.  

 

Mon, 05/14/2012 - 14:14 | 2424407 BeetleBailey
BeetleBailey's picture

OMG! Two Fed Note Bum! Save your post. In one years time - re-visit it - when gold is over 3k an ounce, and your shit-treasuries are still in the shitter.

 

Mon, 05/14/2012 - 20:56 | 2425401 Its_the_economy...
Its_the_economy_stupid's picture

until suddenly....they aren't.

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