The price of gold is dropping sharply because of a pledge by the IMF to dump 403.3 tons of gold bullion onto the market, but that sale requires
U.S. Congressional approval to go through. Is this all just a scam to get people to dump their gold, further driving the price down, then 'they'
come in and buy it all up on the cheap, thus pushing the price to $2000/oz. and beyond.
Does anyone think the Congress would ever allow this sale to go through?
The IMF is selling gold because they will have a 400 million dollar income shortfall
by 2010. It is not in their interests to dump gold, in massive amounts, as it will depress gold futures throughout the entire world. They WILL NOT be
doing this. Sales are going to be coordinated with central banks, according to the
"Central Bank Gold Agreements
This also makes sense, as gold is at ridiculously high levels
, and will likely not fall too much
from these levels (in the opinion of this investor). If I had to guess on something, though, it's that the IMF is betting on currencies stabilizing
in the not too distant future, which means gold will rise in value at a much slower rate.
Well do those people who invest in gold actually physically have any?
Some people own actual gold bars -- buried underground, surrounded by armed guards. This is relatively rare, as far as I know.
Most people buy gold futures
, coins, gold mining stocks (my personal favorite), jewelry, etc. So some people have gold in their safes -- which makes it a highly
asset, while most investors trade futures contracts, or own equities.
Btw, gold is a worthless metal -- if the "powers that be" can convince everyone that paper currency is "as good as gold," then gold will continue
to drop in value. However, with a 3 trillion dollar budget in the US alone, inflation is sure to be a buzz word in the coming years, which usually
means gold goes up. So if you don't own any already, it might be worth looking into.