Gold prices: Watch out below

Banks can dump pallets of gold onto the market, reducing the price. The IMF plans to dump gold in phases.

www.bloomberg.com...

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 protected]

Last Updated: September 18, 2009 17:29 EDT

reply to post by Dbriefed

Hey thanks!
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!

Given that a lot of these sell orders are computerized and actually executed by admin assistants, etc... I can totally see an event where someone authorized the sell of X pieces and their boss interrupts and asks for some coffee or whatever and then reaches over to their computer and increases the sell by a factor of 10. The person comes back and finishes unknowing that the amount was changed and now they are the fall person.

Course that was speculation. Never done anything like that myself, so I could be totally off base here.

This is exactly what I have been warning people for around a year now.

Ever since the whole "BUY GOLD" BS has been going around, I came to the conclusion that there was a conspiracy going around.

I checked the prices of Gold for the last 40-50years and compared the charts.

Basically Gold got super overvalued in the last few years due to panic buying from gullible paranoid people (like us).

This has set up the situation where those institutions with tons of gold in their vaults can now dump gold at super high prices, making massive profits.

Than the price of gold will plummet, and many people will sell theirs out of frustration, further crashing the market.

Than the same institution who started the cascade effect, can turn around and buy ALL that gold back at a far cheaper price.

Thus making massive profit margins.

There you go, the Gold Conspiracy. Enjoy. (Don't forget Silver!)

Originally posted by dodadoom
reply to post by Dbriefed

 

Hey thanks!
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!

What goes up must come down.

Its a financial bubble, it has been fixed and manipulated. And tons of people duped into investing their $$$ into it.

Gold will prolly drop back down to 500 or less, in time. All they need is a panic sell off to get it there. And that is just around the corner, from where I'm sitting.

"Gold tops $1,000 as investors seek safety"
CNN MONEY report ::: money.cnn.com...


So as you can see. Tons of "investors" are about to get their life savings robbed from them. Simply because they bought a commodity when it was at a extremely high price.

Never buy a commodity unless it's undervalued.

Wow, a lot of ignorance on this thread.

I recommend checking out jsmineset.com for a bit of understanding about the yellow metal.

Central Banks are actually selling less gold now than they are buying, it's a first I believe, or at least for a good while.

Any IMF gold dumped will be immediately taken up by the CB's, especially China. None of it will see the open market...... apparently.

Gold will likely keep going in the opposite direction of the dollar - which way do you think the dollar is going in the medium and longer term? (hint: it isn't upwards)

If confidence returns to the US economy, and this insane 'safe haven' buying of the greenback stops, then commodities will go up, taking gold even higher.



[edit on 19/9/09 by RogerT]

Hey, check this out, the IMF is selling all the Gold they can, which is almost 8% of their total holdings. The rest they're not allowed to sell.

www.imf.org...

FACTSHEET
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.

Inflation adjusted, gold is waaaaayyyyyy undervalued.

Trick is to buy and hold the metal though, not try to trade on margin like me and lose your shorts, even though you called it right in the longer term - one wild swing against orchestrated by COT and you're out - 2 days later and you would have tripled your bank

Now that that's settled,...
What to buy? Bars, coins,
Obviously smaller amounts would be better for trading,etc.
Same with silver, right?
What about other commodities?
Thanks!

Haha I love all these idiot goldbugs that want our monetary system to be backed by gold. HELLO! The gold would be controlled just like our money is now by a group of private banks aka IMF/FED etc. It doesn't matter WHAT backs the US monetary system what matters is WHO controls is. I.e. the PEOPLE or PRIVATE BANKS? The IMF dumping gold is about one thing and one thing only CONTROL! This is one huge reason why Ron Paul needs to quit touting a gold backed monetary system. He's half right when he says end the FED but he's half wrong being a goldbug.

reply to post by muzzleflash


Actually you are not far from the truth but, is not "paranoid people buying and boosting the prices" is more like manipulation to of the gold markets by certain countries to drive prices up.

Countries like India, China and the Emirates.

You have to think to yourself, if the IMF is raising money by selling gold, if they would do that if they thought gold prices were rising.

Further in the IMF article:

...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.
...

About three weeks ago, the IMF gave China and other countries billions in loans, China got 50 billions, the same week China was pulling gold reserves from around.

And this happen just one week before the gold started to get high.

Something fishy is going around.

reply to post by Dbriefed


[sarcasm] But ALex Jones said I should buy gold!!!! I must do what Alex Jones says, everything he says must be true. Your just trying to stop me! [/sarcasm]

China is demanding Physical gold supposedly held in the UK. Most probably the British have very little of that physical gold, or perhaps even none.

Less than 1% of exchanged-traded "gold" is ever actually transported physically. This leads me to believe that much, most, or perhaps even almost all of the "electronic" gold is backed by thin air.

The IMF gold injection is supposed to head off a panic wave of people demanding physical gold rather than useless little pieces of paper or electronic blips on a computer screen that tell you that you own gold. Once people realize the truth the demand for physical gold that can be held-in-hand will skyrocket, while the credibility of ETFs and other supposedly "gold backed" securities will evaporate like the frauds they almost certainly are.

I dont know, Im betting on gold instead of paper. The Chinese are buying the stuff up like theres none left. Think about how the supply of dollars has quadrupled over the paster 28 years. And if it goes down $100 or $200 or more Im buying.

People don't really invest in gold to get returns in the same way they might with stocks. Gold is like a safety net. Even if it's value drops it will and has always provided decent buying power. Unlike money you can't print gold but yes it is better to buy it when it's high rather than low. Historically in the worse case senario paper money can be worth about as much as the paper it's printed on, in the worst case senario an ounce of gold will buy a few weeks of food rather than a few months of food.

[edit on 20-9-2009 by Jacob08]

Also I was thinking along different lines when I read this. What if the private banks are planning to buy the gold from the central banks with the intention of keeping it? Think about it, they convert all the printed money they have been given by the government to a real asset. They also made a lot of money off what could be temporary market rally and would want a safe haven for that wealth too.

The large banks have lots of money right now but are fully aware of how they got it and might want to buy something of real value before the value of the dollar decreases more. China might be doing this too but they won't make money like the banks will. In their best case senario they won't lose too much from their dollar investments.

The IMF is planning to create their own currency once the dollar implodes so they can afford to sell gold to their private backers who made this possible and just print back any paper losses they made from selling their gold. At a later date their private backers might even sell gold back to them in exchange for the new currency.

[edit on 20-9-2009 by Jacob08]

The IMF sale = 403.3 metric tons
Total global gold = between 120,000 and 140,000 metric tons

Source for latter stat here.

Thus, this represents a sale of from 0.02% - 0.03% of world gold.




[edit on 9/20/09 by silent thunder]