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Meet The Latest Converted Gold Bug: The IMF
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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http://www.imf.org/external/np/pp/eng/2012/041212.pdf In case you missed
So they sell a couple hundred tons of gold and buy 40ish tons back? What, can't find enough people willing to trade paper for the barbarous relic?
Austerity in Europe? No way ! Hollande, LaGarde, and the rest of the gucci bag toting, left wing central planners will look for any bifurcated "fix" that keeps them in power.
So what's the IMF to do? Buy gold and lend fiat off of it, to keep the boat floating. Another grand plan that will provide short term relief but long term issues.
If gold goes to $5000/oz, they don't care as long as the price of gold gives them enough fiat to "guarantee" that the sovereign bonds make good or at least don't get a hair cut greater than 20%.
The IMF and ECB now know that printing only will not help. They will base some form of financing off of gold. It will be the only credibility that they have left....before the fall.
This has just been made up by desperate gold bugs. The original Bloomberg article does not mention gold buying with one word:
http://www.businessweek.com/news/2012-05-11/imf-to-add-2-dot-3-billion-net-income-to-reserves-amid-rising-risks
It's all for the best, since the IMF is the second worst gold trader in the world, right after the Bank of England. If it were actually buying, it would constitute a major sell signal. The same goes for central bank buying of gold - ever since this has begun making constant headlines gold has been going down.
Ya.
"*** This is an updated and corrected version. The IMF has NOT stated that it plans to buy $2.3 billion of gold as reserves. INSTEAD, the IMF has only stated that it plans to increase its reserves"
source as given, http://www.commodityonline.com/news/imf-stresses-need-to-increase-reserv...
The University of Texas bought nearly $1 billion in gold, and they're not even a bank.
I have always been a 'gut-feeling' person, and all signs indicate to me that the majority of the United States is in a slumber and they believe that all will be well with time. I work for the Federal Government, and I can say that the brightest and most talented people are not in the Fed; they are in the private sector, sometimes abusing each and every rule the Fed makes to try and control them; FDIC is an example I can think of.
I do hate the day-to-day feeling that smarter people are capitalizing on the ignorance of those of us working in the Federal Government that are truly trying to make an honest living to help serve those that are trying to minimize the threats against our country via terrorists.
I’m currently trying to educate myself on the world economies and how to best keep what I have earned for my family in future years. It’s been very frustrating in trying to discern who is honest and who is not. I believe that Zero Hedge is an honest resource for the truth of what matters most to the majority of people; money/currency!
Buy gold and silver Bozo bitchez!
Me too, brother Muppet!
The best idea for gold that I've read is Mark Farber saying that when he goes to conferences, and asks who owns gold, nobody has any. His premise is that when the retail investor, the muppets and the big pension funds get into it, like in the tech bubble in the past, that's when gold will skyrocket. Until then, they're not even close to a bubble.
•J•
V-V
$2.3 billion only buys 60 tons (tonnes). That's 2% of what they already hold. This really isn't news then, is it? We're talking rounding error.
prices in bennybux still getting hammered. ok by me. just threw down more paper for another 100oz/Ag today.
i think this is yet another bluff - that in the end, somehow the CBs are going to "inflate."
not when there's 1,000,000,000,000,000,000,000,000 (1024). "missiing" - there's just no way to do that without igniting hyper-inflation instantly.
the well connected (bankers and political class) already have their bug-out pads in South America, Africa, and on small islands in the South Pacific.
they're going to watch the "West" descend into anarchy and cannibalism. In a few decades, when the dust has settled, and people have forgotten about all of this and once again clamoring for "growth" - they will come back and start the process all over again.
But not during this cycle. Its way way way too late to save the current system. Thats why they're no longer even trying - or even pretending to talk about a future of "growth." We've had 10 decades of growth. Get ready for 3 or 4 decades - at least - of implosion and "poof its all gone"
The IMF is a paper player. Plee papier. Dutch for toilet paper. As long as there's no 'diversification' between paper and physical, we should not discuss it. It's like discussing an iPad on windows98.
By the way, where does the IMF stack the physical? The Acropolis?
So thats why!
MillionDollarBonus: Hes just a trolling, beta male, gay clown. I cant put it any simpler than that. He is the "Homer Simpson" of ZeroHedge.
Doesn't seem to be any point buying more gold and silver till Greece gets booted. Can't see why this wouldn't cause a massive fall in gold and silver.
Then you might get an oversold bounce that would also have to be sold as Italy and Spain slowly head their way to the exit.
Then, maybe it'll be time to buy. Gold might be at $1,000 and silver could be at $18 per ounce.
But then again, what if Ben and co decide to do QE3 on June 19th.
It would be so easy if the Fed ands its printing press didn't exist.
18 dollar silver?
HAH. Ain't happening.
If it did, it wont stay 18 for long.
Absurd timing mechanism. If you actually want the gold now's a good price. If you suspect up to 8 weeks of doldrums phase in the buying. If you suspect more you're "weak hands" and I say you should SELL ALL your gold ... to us.
Gold's not going to 1000, 1200, or even 1400. 1544 is the bottom of my model. It's under it now but I feel fine saying 1500 is NOT possible to hit.