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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.

Wed, 05/16/2012 - 01:48 | 2430482 MeelionDollerBogus
MeelionDollerBogus's picture

Then go load up on Treasuries, especially 10-year notes, and I'll go load up on 1 oz gold bars and we can both laugh at each other.

Won't that be funny?

Mon, 05/14/2012 - 12:14 | 2424015 Chief KnocAHoma
Chief KnocAHoma's picture

Sold silver at 32... looking for good re-entry point... I'm thinking 27.80.

Mon, 05/14/2012 - 14:05 | 2424384 Strider52
Strider52's picture

I just called the bottom in silver and backed up the truck. Did you guys know that trucks don't float very well? The pier gave way under the load, and, well, you know...

Mon, 05/14/2012 - 18:20 | 2425119 BigDuke6
BigDuke6's picture

when you are 'all-in' or reached the point you are comfortable with its interesting to stand back and watch now.

The gold price, how come it didn't keep rising last year when the world's central banks kept printing? On August 23 last year the price hit $US1917 , and finished that day at $US1861.30. A month later it was $US1681 and by New Year's Eve it was $US1540, despite the European Central Bank's massive liquidity operations to prop up Europe's banks and sovereign debtors.

Since late February the gold price has fallen 7 per cent.
Its manipulation sure but also
India and China account for 41 per cent of global gold demand between them. So the gold price should be more closely correlated to what happens in those two countries than with what the Fed or any other central bank does.

The whole of Europe together buys only a quarter of what India does; US demand is roughly a third of China's.

There are three major events which may help explain why gold prices have stalled in spite of Europe's LTRO, the Bank of Japan's dovish stance, Bernanke still holding on to the possibility of QE3.. blah blah.

India's has growth and credit slowing, the rupee under pressure, interest rates rising and political uncertainty. As a result, gold demand fell 3 per cent in the second half of 2011.
China's corruption crackdown. A lot of the brown envelopes full of cash had been finding their way into gold bars, French bordeaux, Macau casinos and Hong Kong apartments. So a massive crackdown from the authorities, which appears to be working.
China's loosening of capital controls. Part of the reason India and China make up more than 40 per cent of global gold demand is that investors in those countries have little in the way of diversification tools available to them. Basically local investors can buy local real estate, local equities or gold. They started allowing Chinese investors to foreign real estate and equities - bad for the gold price.

So the true beleivers will be tested.   I'm ready.

Mon, 05/14/2012 - 12:04 | 2423983 Quintus
Quintus's picture

He is using his tinfoil hat to channel the thoughts of JPM's trading team.

Either that or he is using publicly available COT information published by the CME.  

Duh.

Mon, 05/14/2012 - 11:57 | 2423946 AldousHuxley
AldousHuxley's picture

jpm dumping themselves

 

 

Mon, 05/14/2012 - 12:00 | 2423970 xela2200
xela2200's picture

I absolutely hate what I am about to say. If the price shoots up, they WILL be in for the ride and make a killing.

Mon, 05/14/2012 - 12:07 | 2423993 Quintus
Quintus's picture

Indeed.  Hard to get caught on the wrong side of a market you control.

Even for the accident-prone JPM prop traders.

Mon, 05/14/2012 - 12:16 | 2424029 xela2200
xela2200's picture

Well, it is about preserving what we have, not some sense of justice. If they are indeed getting ready to come for the ride, the moves in silver will be violent on the way up as they have done in the way down. Of course, this is going to mean that all sh*t is breaking loose which I don't look forward to.

Mon, 05/14/2012 - 12:39 | 2424100 CH1
CH1's picture

Of course, this is going to mean that all sh*t is breaking loose which I don't look forward to.

Yeah, I understand, but better sooner than later. Let the crash be fast and very hard... and may it sweep the status quo away.

Then, we have some kind of chance to rebuild by ourselves, not at the command of the usual bosses.

Mon, 05/14/2012 - 13:15 | 2424234 xela2200
xela2200's picture

I can tell that you haven't lived in a country that implodes. The effects become generational. It is not like a flush and then everything goes back to normal. Talk to anybody that went through the depression of the 30's and ask them how that changed their lives. Now, imagine the same thing WITHOUT the boom that came after WW2. The youth of this country are going to be forced to grow up in a hurry. Violence, scarcity, black markets, Police states, mistrust, you name it. Look at Detroit for a taste. I came to this country to escape all of that, but now there is nowhere else to run.

Mon, 05/14/2012 - 12:06 | 2423997 JLee2027
JLee2027's picture

If you think JPM will ever be long Gold/Silver you are nuts.

 

They go down with the ship. Hell they are the ship.

Mon, 05/14/2012 - 12:12 | 2424009 Quinvarius
Quinvarius's picture

They will be the ones who push gold up the last 90% of the move.

Mon, 05/14/2012 - 14:06 | 2424378 JLee2027
JLee2027's picture

Where in the paper market? That is the fallacy. I'm talking physical. The paper market will implode. Who is going to trust it?  Let JP run the paper price up, it's a bear trap.

Mon, 05/14/2012 - 12:16 | 2424032 xela2200
xela2200's picture

They will make money up or down. They have been doing exactly just that for the last 100 years or so.

Mon, 05/14/2012 - 12:41 | 2424110 CH1
CH1's picture

The last hundred years have run on an unsustainable, irreversible fiat money machine. That machine is reaching its end.

Things do NOT stay the same forever. Where is the eternal empire of Rome?

Mon, 05/14/2012 - 12:57 | 2424183 NotApplicable
NotApplicable's picture

Washed up on the Potomac.

Mon, 05/14/2012 - 12:33 | 2424091 DosZap
DosZap's picture

If the price shoots up, they WILL be in for the ride and make a killing.

 

For what, FIAT?............they can get all that they want.

They are making a HUGE statement w/out saying one word.

Mon, 05/14/2012 - 12:56 | 2424180 Alea Iactaest
Alea Iactaest's picture

Not that they will tell you or me ahead of time, but if I was JPM i'd go long on some OTM calls and stand for delivery... especially after I sold a bunch of puts.

 

Who wants to lay odds for SI/JPM cross by 12/31/2012?

Mon, 05/14/2012 - 13:02 | 2424195 NotApplicable
NotApplicable's picture

They're likely the only one with any deliverables left (which, of course, is just more paper).

Mon, 05/14/2012 - 12:02 | 2423974 DosZap
DosZap's picture

Gosh, why not 2 Billion in FIAT?..................the REAL money?.

Hypocritical Bstds.

Mon, 05/14/2012 - 11:51 | 2423912 Mongo
Mongo's picture

it should read "allegedly holds around 2800 tonnes..."

Mon, 05/14/2012 - 12:09 | 2424004 JLee2027
JLee2027's picture

Exactly. How did they acquire this Gold? Via the US Taxpayer? So we own it.

Mon, 05/14/2012 - 12:31 | 2424084 Quintus
Quintus's picture

They don't own any of it.  It has been pledged to them by the various IMF member states as their membership stake, but it still resides in the various national treasuries, where it is again counted as part of the national reserves.  Including the bit that has been leased out to the Wall St banks.  Which also include the same gold as part of their balance sheet.  Including the bit that they have leased out to other counterparties who, predictably, include it as part of their balance sheet too.  Etc. etc.

The word 'Rehypothecation' could have been invented for the gold market.

Mon, 05/14/2012 - 13:55 | 2424337 wisefool
wisefool's picture

+1. This was telegraphed months ago when Geithner said he has "100% confidence in loans to the IMF because they are backed by gold." I dont favor gold, but I am glad it can be used as a competing currency for those that are interested using it that way. The goldbugs should not be so absolute in their advocacy for it. See also Spainish flooding the gold market 17-18th centuries.

Mon, 05/14/2012 - 11:54 | 2423921 PaperBear
PaperBear's picture

If everyone is now buying which dumb idiot is doing the selling ?

Mon, 05/14/2012 - 12:02 | 2423936 xela2200
xela2200's picture

Everyone shorting it right now.

The large specs who seem to move on command to where they want them.

Mon, 05/14/2012 - 11:54 | 2423939 francis_sawyer
francis_sawyer's picture

Munger

Mon, 05/14/2012 - 12:10 | 2424008 Bay of Pigs
Bay of Pigs's picture

And Gates and Buffet

Mon, 05/14/2012 - 11:55 | 2423942 Canadian Dirtlump
Canadian Dirtlump's picture

Probably some mongoloid fund manager who got margin called after rehypothecating his gay lover's rainy day fund 163 times then going long on jamie dimon's new book "do as I say not as I do you fukking asshole."

 

 

Mon, 05/14/2012 - 12:07 | 2423992 dereksatkinson
dereksatkinson's picture

"Rydex Precious Metals Fund. Since the late 2010 peak, the fund has dropped by 40% while the assets in the fund have declined by 70%! Interestingly, the assets in the fund declined by 70% in 2008. The difference is the fund’s price declined by 73%. In other words, we are seeing the same amount of outflows as in 2008 yet the market has declined by 40% and not 73%."

 

http://thedailygold.com/major-bottom-in-precious-metals-could-occur-this...

Mon, 05/14/2012 - 12:30 | 2424078 Quinvarius
Quinvarius's picture

As soon as JPM gets all the PM derivatives off its books, the tax payer will be presented with the bill for the raids of the last year.  Mostl likely it will come in the form of $10 a gallon gasoline.  These raids have to be expensive...in real money terms.

Mon, 05/14/2012 - 11:53 | 2423925 Canadian Dirtlump
Canadian Dirtlump's picture

I had planned to activate some silver long johns today to celebrate the fail whale. Sounds like a good plan.

Mon, 05/14/2012 - 11:53 | 2423927 stercorarius
stercorarius's picture

Just bought another gold kangaroo!

Mon, 05/14/2012 - 12:19 | 2424037 ATM
ATM's picture

I just picked up three Krugers and got the wife an 18kt rolex president. We are seeing the mad gyrations of a dying animal in all markets. those left holding real things will win.

Mon, 05/14/2012 - 12:47 | 2424140 XitSam
XitSam's picture

Uncivilized barbarians!

Mon, 05/14/2012 - 14:28 | 2424463 Temporalist
Temporalist's picture

Hah!  You can't eat Rolexes!

Mon, 05/14/2012 - 11:55 | 2423928 francis_sawyer
francis_sawyer's picture

LaGarde is going to need a heftier handbag...

Mon, 05/14/2012 - 14:50 | 2424530 Zero Govt
Zero Govt's picture

knowing that brash frog it won't be in her handbag, she'll be wearing it

Mon, 05/14/2012 - 11:53 | 2423931 SeverinSlade
SeverinSlade's picture

The IMF is getting a bargain with gold <1600.

How funny is that.  The banksters constantly attack PMs in order to suppress prices (and thus, create the illusion that there's low risk in the markets) but at the same time they give themselves the ability to purchase PMs at a huge discount.

Mon, 05/14/2012 - 11:58 | 2423954 fuu
fuu's picture

Almost like there is a plan.

Mon, 05/14/2012 - 12:02 | 2423971 Uber Vandal
Uber Vandal's picture

Indeed.

Too bad they can't monkey hammer this down to $250 per ounce like it was around 12 years ago.

I hope for the holders of this Barbaric Relic that they do not have another 6102 @ the "offishul" book value of $42/oz.

Mon, 05/14/2012 - 12:20 | 2423988 xela2200
xela2200's picture

The BRIC seem to be buying at a discount also. QE in June will be the go flag if it comes. I guess that would depend on whether all the players are in position.

Mon, 05/14/2012 - 12:11 | 2423935 Manthong
Manthong's picture

Barbarians!

..or are they Jewish and this 1939 Vienna?

Mon, 05/14/2012 - 11:56 | 2423940 Lost Wages
Lost Wages's picture

Obviously the price is pushed low so the IMF can get as many ounces as possible.

Mon, 05/14/2012 - 11:56 | 2423941 buzzsaw99
buzzsaw99's picture

Credit risk my ass, currency risk is more like it. Even the IMF doesn't want to hold clownbux.

Mon, 05/14/2012 - 12:21 | 2424051 xela2200
xela2200's picture

SDRs might be in play. It would be interesting if Greece becomes the first country to use it as currency.

Mon, 05/14/2012 - 14:30 | 2424469 Temporalist
Temporalist's picture

Not possible there is no printed currency of it floating around.

Mon, 05/14/2012 - 11:57 | 2423947 junkyardjack
junkyardjack's picture

I wonder how much is gold YTD priced in AAPL stock...

Mon, 05/14/2012 - 12:00 | 2423956 Capitalist
Capitalist's picture

More like 2800 tonnes of rehypothecated gold.

Mon, 05/14/2012 - 11:58 | 2423959 Bam_Man
Bam_Man's picture

A good sign that the co-ordinated global printfest is about to kick into high gear.

Mon, 05/14/2012 - 12:00 | 2423966 Quintus
Quintus's picture

I remember not to long ago that on many occassions the 'IMF may be about to sell some gold' rumour was good for a $20 - $30 instant selloff in gold.  Needless to say, this rumour surfaced with GREAT regularity.  Until their bluff was called and they did actually sell some gold and the Indian CB swallowed most of it whole.

I suspect, however, that an 'IMF buys gold' rumour is good for about $0.00 of a rise in gold.

As we all know, gold negative rumours are only cover stories for raiding that has already been scheduled by your friendly market fail whale.

Mon, 05/14/2012 - 12:02 | 2423972 Cdad
Cdad's picture

eh?

What exactly is the IMF going to use to buy gold?  Is it going to sell its rehypothicated gold to buy gold?  Portuguese bonds?  Is it going to use the proceeds from its recent around the world begging tour to drum up funds for Europe?

 

Mon, 05/14/2012 - 12:02 | 2423984 francis_sawyer
francis_sawyer's picture

the sweat of your brow...

Mon, 05/14/2012 - 12:22 | 2424056 xela2200
xela2200's picture

Partially back the SDR?

Mon, 05/14/2012 - 13:37 | 2424294 Seer
Seer's picture

They'll do what power and wealth always do: buy the future.

Mon, 05/14/2012 - 12:02 | 2423978 Manthong
Manthong's picture

The IMF should be prohibited from holding anything but paper.

Mon, 05/14/2012 - 12:06 | 2423994 slackrabbit
slackrabbit's picture

Correction: The IMF should be prohibited.

Mon, 05/14/2012 - 12:47 | 2424134 Zero Debt
Zero Debt's picture

Alternatively, anything the IMF can do, anyone should be able to do. Bumper sticker draft: Legalize credit creation.

 

Mon, 05/14/2012 - 12:05 | 2423989 Cycle
Cycle's picture

When IMF bureaucrats romp into the market and decide to buy gold, that pretty much assures that a top is in for a while. The same cadre of cretins will likely sell gold at the next low.

Mon, 05/14/2012 - 12:06 | 2423996 fresno dan
fresno dan's picture

Gold is a barbarous relic....BARBAROUS!!!!

Much, much better to believe in government and our illustrious SEC and associated oversight agencies, which did a sterling (but not silver like) job of regulating World Con, Endrun, Madoff, et al.  And we won't get into Fannie, Freddie, Poochie, and who knows who.  And of course, our HONORABLE, HONORABLE, Congress......

Our markets our transparent, with interlap-dogging agencies, like the ones that made sure the money Corrzine oversaw got right back to their rightful heirs expeditiously!  Out TOP MEN at the Fed are TOPS!!!  "Sub-prime is contained" - you can't buy insight like that - it comes from a deap, profound insight that cannot be refuted...

Honestly, trusting an rate, immutable inert substance, instead of our great American Leaders!!!  PShaw...

Mon, 05/14/2012 - 12:07 | 2424002 slackrabbit
slackrabbit's picture

Clearly they see the writing on the wall....

Mon, 05/14/2012 - 12:19 | 2424021 MrPoopypants
MrPoopypants's picture

A gold standard has always been part of the plan.

http://www.cfr.org/business-and-foreign-policy/digital-gold-flawed-globa...

Never forget, gold is just as manipulable as fiat, and just as capable of oppression.  See: William Jennings Bryan.

Gold takes power away from the sovereign state, which is what we want.  But gold takes power away from the sovereign state - which is what they want.

Mon, 05/14/2012 - 12:16 | 2424033 SILVERGEDDON
SILVERGEDDON's picture

AND - that two billion dollars in gold will be loaned to JP Morgan's Jamie Dimon, to take the heat off of the "official" publicly disclosed losses to date in JP Whale land. Re-hypothecate that trade, bitchez ! How convenient.

Mon, 05/14/2012 - 12:18 | 2424034 10044
10044's picture

Well duh!! What do you think the latest smash in price was for? (Answer: so they could buy cheaper)

Mon, 05/14/2012 - 12:19 | 2424038 Silversinner
Silversinner's picture

Think I am going to frontrun the IMF by adding another

ounce to my stack.

Mon, 05/14/2012 - 12:20 | 2424043 The Swedish Chef
The Swedish Chef's picture

And this means what? Another $100 off the spot price?

 

Fundamentals couldn´t be better but as they don´t count...

Mon, 05/14/2012 - 12:20 | 2424044 Crispy
Crispy's picture

Govt  and agencies of the like coming into physical gold dont exactly make me comfortable with what I have. They tend to have the uncanny ability of picking turning points. 

Mon, 05/14/2012 - 12:21 | 2424046 theTribster
theTribster's picture

Just went long NUGT which has been getting killed lately - easier to crush the miners apparently. May not be at the bottom but I'm prepared to go longer if it continues south. Its amazing situation in the world today, nothing is real, nothing can be believed and everything you ar etold by politicians is an outright lie. This is as bad as it has ever been, certainly in my lifetime (51).

Europe will be doing something soon to calm the markets, LTRO or some other variation? - Europe Bonds? They will do something that will stabilize for the short term and then put their heads back in the sand and hope it works and of course it won't. Southern Europe is fukked, period.

I think the Eurozone acts as a proxy for the NWO, it will be interesting to see if they have the political will to continue to solve problems that they themselves created. This was all planned in my opinion, in order for them to stick to the plan Europe must not fail. The strength of the people will decide obviously, so far they have successfully been ignored - but for how much longer?

I have a lot of friends that use MSM for their input and they have no idea how bad it is in Europe, when I sent them pictures of Spain and what is happening there they were shocked! Is the MSM really that bad, are they refusing to cover the European crises? I'm surprised since it is that which they will use as the scapegoat when our economy finally hits the steel-reinforced wall (at full speed driving a mini-cooper with the roof down and seatbelts off and drunk). Its all Europes fault, their all lazy bums that won't work or pay taxes!

I really don't think they (NWO) want the Euro to disintegrate so expect some major changes in terms of growth vs austerity, timeframes for fiscal compliance extended, more printing, some way to directly fund the sovereigns, bigger gubmint balance sheets, etc. They have to act fast however because Greece is slipping into oblivion tomorrow!!!

I think the Troika will relent on Greece (and Spain, etc), that's the only way to keep it together. If the NWO let's Greece get away others will follow no doubt. I guess we'll see.

Man, I need some more popcorn. 

Mon, 05/14/2012 - 13:09 | 2424222 NotApplicable
NotApplicable's picture

IMO, miners will go the way of the banks, either being hollowed out by the banks directly (Jim Sincliar's discussions about non-recourse loans), or being nationalized directly once it becomes obvious that they cannot be allowed to just dig money out of the ground. Even if they aren't outright seized, they'll still be "royalteed" and otherwise regulated to death.

Mon, 05/14/2012 - 14:05 | 2424385 BidnessMan
BidnessMan's picture

Agree - mining shares are just another form of paper promises that will go poof ....

Mon, 05/14/2012 - 13:52 | 2424328 lakecity55
lakecity55's picture

The US MSM is trying every which way to avoid showing the reality in Europe.

I quit getting my news from them along ago. Their divergence from reality is only getting bigger, and morte people are realizing it.

Mon, 05/14/2012 - 12:26 | 2424068 viator
viator's picture

IMF policy - sell low, buy high

Mon, 05/14/2012 - 13:03 | 2424199 mirac
mirac's picture

Whatever plan they had seems to be backfiring...

Mon, 05/14/2012 - 12:27 | 2424073 walcott
walcott's picture

thats only $16 bilion or so of gold in paper dollars.

do the math. So real value of gold should be 50-80k an ounce at least.

Or just issue a new currency. $1000 = 2 bucks.

 

Mon, 05/14/2012 - 12:38 | 2424097 youngman
youngman's picture

With my little brain....but a very big nose.......I studied this am.....to me it seems the central banks are going to announce 4 trillion this year....that is mucho mucho paper....I do not know who is selling today...I do not think anyone is...but the computers have taken it down....buying treasuries ....right...not me ....

Mon, 05/14/2012 - 12:36 | 2424098 Quinvarius
Quinvarius's picture

German Jews in 1939 bought gold.  In 1945, the German Mark went to zero for the second time in 30 years.

Mon, 05/14/2012 - 13:17 | 2424245 Gideon Gono
Gideon Gono's picture

I appreciate the reference.  The other day I was thinking that it might as well be May 1938 something feels the same.

Mon, 05/14/2012 - 12:38 | 2424102 Sizzurp
Sizzurp's picture

TPTB smash gold so they can buy it cheaper.  What else is new.  Does anyone really think there is anyway out of this mess that doesn't leave every paper currency in the world destroyed?  If you answer yes, then you are seriously delusional, and if you answer no, then you already know what you should be buying every chance you get.

Mon, 05/14/2012 - 12:45 | 2424124 Joe The Plumber
Joe The Plumber's picture

Germany after weimar still had a paper currency

Argentina and russia still had a paper currency after their crises

Paper currency is kinda like Freddy Krugar

Mon, 05/14/2012 - 12:56 | 2424173 El
El's picture

I'm on the fence about this. Yes, Germany after Wiemar still had a paper currency, and Argentina and Russia still had paper currency...but we have never seen this on a global scale. Considering much of the world is cheerfuly marching ever onward towards a great big cliff, do you really believe we will end up with another (or the same) fiat currency? Paper currency is one thing if if it backed by gold or silver, but quite another if it isn't. Certainly something to ponder. If we don't tie our currency to gold/silver, then we are idiots.

Mon, 05/14/2012 - 13:14 | 2424229 Sizzurp
Sizzurp's picture

yes sure they had paper currencies, but you needed alot more of it to buy anything of value.

Mon, 05/14/2012 - 13:13 | 2424231 NotApplicable
NotApplicable's picture

Ah, c'mon now. We've got it roughly tied to each others' debt levels. What could possibly go wrong?

Mon, 05/14/2012 - 13:35 | 2424287 newworldorder
newworldorder's picture

Not trying to pick an argument here with anyone but you have got to understand that at least 4 generations of Americans as well as Europeans, have been conditioned by the desirability of fiat. Gold/silver are no longer "money" in the eyes of the majority.

They will cling to this belief untill their head goes underwater.

Wed, 05/16/2012 - 02:46 | 2430552 MeelionDollerBogus
MeelionDollerBogus's picture

Not to continue an argument nobody picked ... but my reading of Currency Wars credibly convinced me about a chain-reaction.

In the end a ton of people won't dump dollars until some smaller but significant group does. HOWEVER, that same group may do so with a yet smaller group. If the shock is big enough at first to hit anywhere from say ... 10,000 to 50,000 people and others see them dumping dollars, a few more will tag along. How many more? How many actually makes a difference? Who knows.

NO question someone's gonna be "last in line" but some people will still be early enough to be happy even if the chain reaction does indeed bring a lot of chaos.

Wed, 05/16/2012 - 02:43 | 2430547 MeelionDollerBogus
MeelionDollerBogus's picture

The least-orderly, most chaotic option is to try for a paper-only system of multiple reserve-currencies, that's my reading of the end of Currency Wars. Sorry, spoiler alert.

There's 2 angles into the gold-backed global-currency system of IMF SDR's (partially backed).

The gist is to do with complexity theory & systemic collapse of very large interconnected systems. Without attacking the complexity problem, it will attack us. That's very bad.

Mon, 05/14/2012 - 13:16 | 2424105 Bastiat009
Bastiat009's picture

IMF is buying ... hence the crash.

One day, it will all make sense. I swear.

 

Let's not forget that out of the 600 or so economists working at the IMF, not one saw the crisis coming in 2008.

Mon, 05/14/2012 - 14:17 | 2424420 CitizenPete
CitizenPete's picture

http://www.bloomberg.com/news/2012-05-11/imf-to-add-2-3-billion-net-income-to-reserves-amid-rising-risks.html

 

Still scratching my head on this.  Where does it say that the IMF is buying gold in this bloomberg post? They are increasing RESERVES.  Reserves in IMF speak are SDRs. 

Mon, 05/14/2012 - 12:41 | 2424108 onebir
onebir's picture

To put this in perspective the IMF is planning to increase its holdings by ~1.3*%

*If this calculation is correct (((2e9/1600)/32.15)/1000)/2800 

Mon, 05/14/2012 - 12:42 | 2424113 Joe The Plumber
Joe The Plumber's picture

As the perfect contrarian indicator i dont want to buy gold right now. I think it will go lower.

That means the bottom is in

Mon, 05/14/2012 - 12:46 | 2424135 data_monkey
data_monkey's picture

"I think the reason people hold gold is as protection against what we call tail risks, really, really bad outcomes. And to the extent that the last few years have made people worried about the potential of a major crisis they have gold as protections." - The Bernanke

 

Mon, 05/14/2012 - 12:50 | 2424145 split4to1
split4to1's picture

re Goldcorp............

 

 Bottom In The Making:http://t.co/DfNWLeV9 

Mon, 05/14/2012 - 12:50 | 2424153 data_monkey
data_monkey's picture

I would call this, "a tell."

Just sayin.

Mon, 05/14/2012 - 13:08 | 2424178 drivenZ
drivenZ's picture

what? where does it say in Bloomberg that the IMF is buying gold? I see no sources and no link from "commodity online" back to bloomberg stating that. All I see is that they were selling gold last year...which means IF they are buying, they're just replacing a small amount of gold they sold last year. Whole lot of sheep on ZH. 

"Net income last year was about $6 billion, including a profit of about $4.9 billion from gold sales."

Tue, 05/15/2012 - 03:44 | 2426085 Bron Suchecki
Bron Suchecki's picture

You are right, there is no reference to it and Commodity Online has retracted it. A Zero Hedge fail as I blogged here http://www.perthmintbullion.com/blog/blog/12-05-15/IMF_To_Buy_Gold_Not.aspx

Tue, 05/15/2012 - 09:02 | 2426406 drivenZ
drivenZ's picture

Thank you for the fact checking. It amazes me how many people on ZH and elsewhere drone on and on about "sheeple" and how everyone just believes whatever the main stream media says... AND then they come here and take whatever is posted as gospel. It's ridiculous. And I don't know whether it's just getting harder to push the agenda here or there are new authors or what but the site has gotten even worse than i remember it. It's really a shame.

Mon, 05/14/2012 - 13:27 | 2424265 skepticCarl
skepticCarl's picture

The IMF should be buying "$US" instead of gold right now, if they wish to protect any funds that they might possess.

Mon, 05/14/2012 - 13:31 | 2424281 jazze
jazze's picture

why would they announce

Mon, 05/14/2012 - 13:31 | 2424282 jazze
jazze's picture

why would they announce

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