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IMF Board Approves Sale of 403.3 Metric Tons of Gold (Update1)
By Sandrine Rastello
Sept. 18 (Bloomberg) -- The International Monetary Fund’s executive board approved gold sales of 403.3 metric tons valued at about $13 billion and pledged to avoid disrupting the market with the transactions.
The IMF said it would “stand ready to sell gold directly to central banks.” The sales could also be conducted in the open market in a “phased manner” over time, the Washington- based lender said in an e-mailed statement today.
“These sales will be conducted in a responsible and transparent manner that avoids disruption of the gold market,” IMF Managing Director Dominique Strauss-Kahn said in the statement.
The IMF board last year endorsed the quantity to be sold, which accounts for one-eighth of the IMF’s total gold stockpile, as part of a plan to shore up its finances. The sale will also increase the agency’s ability to lend at reduced rates to low- income countries. The IMF is the world’s third-largest holder of gold reserves.
Gold futures for December delivery fell $3.20, or 0.3 percent, to $1,010.30 an ounce today on the New York Mercantile Exchange’s Comex division.
The U.S. Congress in June approved legislation that permits the American representatives at the IMF to agree to the sale.
To contact the reporter on this story: Sandrine Rastello in Washington at email@example.com
Last Updated: September 18, 2009 17:29 EDT
Originally posted by dodadoom
reply to post by Dbriefed
What do you think will happen based on what you've seen?
Will gold ever fall to 7 or 800 again?
I dont trust the banks or future of the dollar with all the stuff going on.
IF anyone has some advice on this topic that'd be way cool! Thanks!
Gold in the IMF
September 18, 2009
How the IMF acquired its gold holdings
The IMF holds 103.4 million ounces (3,217 metric tons) of gold at designated depositories. The IMF’s total gold holdings are valued on its balance sheet at SDR 5.9 billion (about $9.2 billion) on the basis of historical cost. As of August 28, 2009, the IMF's holdings amounted to $98.8 billion at current market prices.
A portion of these holdings was acquired after the Second Amendment of the IMF’s Articles of Agreement in April 1978. This portion, amounting to 12.97 million ounces (403.3 metric tons) with a market value of $12.4 billion as of August 28, 2009, is not subject to restitution to IMF member countries (see below), unlike gold the IMF acquired before 1978.
Originally posted by muzzleflash
Never buy a commodity unless it's undervalued.
...This decision is a key step in implementing the new income model agreed in April 2008 to help put the IMF’s finances on a sound long-term footing. A central component of the new income model is the establishment of an endowment funded by the profits from the sale of a strictly limited portion of the Fund’s gold, being the gold the Fund has acquired after the Second Amendment of the Articles. In July 2009, the Executive Board agreed that resources linked to gold sales would also help boost the Fund’s concessional lending capacity.