IMF plans gold sale to raise $6bn

IMF plans gold sale to raise $6bn

news.bbc.co.uk

The International Monetary Fund has proposed selling some of its gold holdings as part of radical plans to shore up its troubled finances.

The gold sale is dependent on approval by US Congress.
It also relies on approval from many of the 185 countries that are members of the Washington-based institution.

It is part of a dramatic overhaul of its income model, which has over the past 60 years been reliant on lending to poor countries to support its role as the supervisor of the world economy.

(visit the link for the full news article)

It looks as though the IMF's previous business model which was heavily reliant on income from debt is no longer viable. Seems like a fairly positive thing, especially if this means that there are fewer third-world countries digging themselves into inescapable holes.

Any other ideas on the ramifications of this?

news.bbc.co.uk
(visit the link for the full news article)

[edit on 8-4-2008 by The_Modulus]

WOW! One of the Big Three that make up the International Banking Cartel !

This image lays it out, from the top down:




And they thought they could create money as debt forever!

It's about time for their little club to FOLD !!!

[edit on 8-4-2008 by tsEnigma]

[edit on 4/8/08 by tsEnigma]

Oh great!

One of those 'stable' investments that investors typically resort to in harder times is about to be flooded. Interesting time we live in, wouldn't you agree?

Originally posted by Now_Then
Oh great!

One of those 'stable' investments that investors typically resort to in harder times is about to be flooded. Interesting time we live in, wouldn't you agree?

This shouldn't be a huge surprise. Historically, gold has just barely kept up with inflation. Over the last several years it has gone up in a big hurry and the price is now inflated. It's going to crash at some point and for major holders of gold (like the IMF) now is the time to sell and reap the rewards.

Originally posted by tsEnigma
WOW! One of the Big Three that make up the International Banking Cartel !

This image lays it out, from the top down:

And they thought they could create money as debt forever!

It's about time for their little club to FOLD !!!

Right on! This makes me so angry. They win again, they get the gold(wealth) and the people get the worthless paper (debt).





[edit on 8-4-2008 by deessell]

reply to post by BlueTriangle


BlueTriangle.

Believe it or not, if I'm not mistaken precious metals are still undervalued. 6-10 years ago they were just dirt cheap.

I did a quick calculation of that 12.87 million oz, which is proposed
for sale sometime in April or over some months....

that +12 Million ounces does equal to the 400Tonnes of IMF gold that was reportedly going on the market ~ If Approved !~

i've also noticed since Easter, that more financial advisors on the web
have been talking of a drop in gold to around the $850 level in the next several weeks.
? is this a case of the tail-wagging-the-dog... i.e. IMF proposal causing
the price of gold to retract to $850 in some twisty-turny logic.
Or has the market determined that gold at $1000 is a greater 'bubble' than the forward devaluation of the dollar, which is seemingly 'bottomed' at 72.25.

Just the 'threat' of the IMF selling 4oo tonnes of gold is swaying the markets and the preceptions of valuation of gold.
Whether the IMF actually sells gold (under an assumed identity)
is another question.
in the interim, the central banks have staved off a mini-crisis long enough for them & their client banks/financial houses/PrimaryLenders to set up their strategies for gaining wealth

Originally posted by TheBandit795
BlueTriangle.

Believe it or not, if I'm not mistaken precious metals are still undervalued. 6-10 years ago they were just dirt cheap.

I don't buy that. I think the price of gold is artificially high right now as a result of the weakening dollar and investors moving their money to what they perceive to be a less volatile investment. Increasing demand equals increasing value.

The all-time highest value of gold remains at $2100 when adjusted for inflation (since 1980). Today it hasn't reached even half of that.

Note that this is 6 months old and gold is currently up to about $912. I was only 5 years old in 1980, so I can't really relate to what the "mood" of the country was at that time. From what I've read, there were the same fears about a possibly declining economy and uncertain world politics as what we have now. A bet on gold right now would seem to be a bet on a continuing downswing of the economy.

Well, it looks like there is still more to go.

It seems so strange to me that a Bank-like system, which is presumably around to stabilize and promote global growth should be run like a business, whose business model has clearly been build around bringing nations into debt

I am continually amazed at how passe the global community seems to be in regards to the people who are controlling money. It seems principally absurd that a private organisation, who by definition, only have an interest in making a profit. These are not charity organisations, how can you justify privatization?

A nations currency is backed/guaranteed by their gold reserves.
These people would sell their own mothers.

Does anyone know of a way to see who is buying/selling the gold, given its recent slump?
We know of some of those who want to sell it, but who is buying it?
Just follow the money/(true wealth (gold/physical labour assets etc)) trail...answers lie there I reckon.
I ponder, do the IMF need the money or are they deliberately reducing the price of gold?

There is no reason why the IMF would need a mere 11 billion dollars.

Originally posted by TheBandit795
Well, it looks like there is still more to go.

It's kind of hard to say, really. If you expect it to get as high as it did in 1980 then there's still more to go. It's kind of like betting your money at the roulette table in Vegas. It could drop back down to more realistic levels tomorrow or it could go up another $1000.

It is like a roulette wheel. Until you find out the underlying causes of the way this works. Because there is always a method and a way to this. There must be ways to predict it, and following threads by members such as Gools are a good way to find out.

Originally posted by St Udio

i've also noticed (lately) that more financial advisors on the web
have been talking of a drop in gold to around the $850 level in the next several weeks.
? is this a case of the tail-wagging-the-dog... i.e. IMF proposal causing
the price of gold to retract to $850 in some twisty-turny logic.

my CT thinking has raised a possible answer as to why there is now a campaign underway to depress the price and desire of Gold.

When the IMF does release 400tonnes, will many investors already have been soured or scared of the presently expensive (+$900.) gold...
having it drilled into the publics wisdom that gold is falling to $850-$800..


Thereby clearing the way for the parties which are intent on gobbling up that 400 tonnes of IMF gold at whatever the current market price is...instead of having to bid against demand.


I realize that what i propose is calling the Authors of articles downgrading the vale of gold as being disinformationalists (whew isn't that a Bushism)... and/ or 'mouthpieces',
because at this particular time, in relation to the IMF rumor of selling gold holdings, This is a Far different forecast than the months of articles of gold reaching $1500. or more by 2009 and beyond.

Why the sudden 'Bear' concerning gold... while 99% agreed weeks ago that gold is in a long, sustained 'Bull' market?
Too much coincidence as I see it. The Fed along with their PrimaryDealers are massaging the gold markets,
probably so thay can swoop in on the 400 tonnes while gold is in a temporary position of disfavor.


just musing.... thanks,

Originally posted by BlueTriangle



I was only 5 years old in 1980, so I can't really relate to what the "mood" of the country was at that time.

That would be Jimmy Carter. Mortgage rates over 20% and double digit inflation. Far worse than it is now by a long ways. What is happening now is child's play in comparison.

I've been warning people that this flood of gold was imminent and firmly made to feel dumb for thinking it. When they start pushing gold investments you can be sure those who have it are ready to sell and the buyers will get burned. The same people will buy it back from you when the price gets low enough.