IMF: 'On market gold' sales move ahead

The IMF announced last year its intentions to sell just over 403 metric tons of gold, and official interest in the IMF’s gold sales has proven substantial.

"Following the sale of 212 tons of gold to central banks, the IMF is moving ahead with sales on the gold market, phasing the sales so as to avoid market disruption.

In September 2009, the IMF’s Executive Board approved gold sales totaling 403.3 metric tons (12,965,649 troy ounces). Having already sold over half that amount to several central banks, the IMF is now looking to sell the remaining 191.3 tons of gold."

I'm not sure what the real agenda of the IMF is in this case. I was speaking to my financial advisor yesterday and he told me the IMF sold 44% of their gold a few months ago, so he's selling all his gold. He told me that when the IMF sells gold, he does too.

This raised a red flag for me. Because if they sold that much gold in one day (ie:200 tons to the Reserve Bank of India), you would think the markets would have reflected that in some way, like gold dropping in price a few hundred dollars. But gold hasn't moved all that much and still sits over 1100 oz.

From what i can tell by this article, the reason they sold it is this:

"Gold sales, strictly limited to 403.3 tons, were approved by the IMF’s Executive Board on September 18, 2009, and will serve two purposes.

Key to new income model: The IMF’s new income model is based on the recommendations of the Committee of Eminent Persons chaired by Andrew Crockett to reduce the Fund’s reliance on lending income to cover its administrative expenses. The new income model aims to diversify the IMF’s income sources and better align them with the variety of functions performed by the Fund. A key element is the creation of an endowment with the profits from gold sales, which would be invested in a manner consistent with the public nature of these funds.

Low-income countries to benefit: In 2009, the IMF agreed to mobilize $17 billion through 2014 for lending to low-income countries, mostly in Africa, that have been hard hit by the global crisis. A financing package, which includes resources linked to these gold sales, has been agreed upon and will generate the additional new subsidy resources of SDR 1.5 billion needed to help cover the cost of further low-interest lending by the Fund."

I'm not sure what's going on here, but it makes me wonder if something big is coming down the pipe. My financial advisor seems to think that gold is gonna drop in price soon.
I asked him why it hasn't dropped yet, and he told me he wasn't sure. I told him that there has got to be more to this.
What kind of event could occur soon that would force the price of gold down? From looking at the economy, I'm preparing for a complete collapse, but my financial advisor doesn't think there will be a collapse.

WTF is going on? Can anyone shed some light on this?

www.imf.org...

Total guess,respecting your word on this issue greatly,as having read your words before.There are mines doing increased exploration as I have read minewatch since gold started going wild.But these are costing more and more to operate and there has been no news regarding anything big,like a 'strike',so that's not it.

I think there have been fake 400 oz "good delivery bars" found out(By China last Oct),assayers have quantified the damage and to whom and assigned probable blame at that banker meeting a couple weekends ago in Australia.So to allow restocking of real gold to pay the Chinese and they're now taking delivery and testing each bar,there's collusion to depress the price to allow restocking with less cost.A conspiracy like this would only form between natural opponents in business because of the severity of the crisis.This would be a move of desperation getting anything before the jig is up(the people find out their paper gold is worthless cause they needed to pay the Chinese these bars over here.Y'all get those.)and price skyrockets.Right now there is doubt as to trustworthiness of gold because of this fraud,but,emotional in nature,it will soon be forgotten.IMHOAnd the price goes up.I still like gold to hold and a lot of other people do too,you?

[edit on 18-2-2010 by trueforger]

Originally posted by eArth33lr
I was speaking to my financial advisor yesterday and he told me the IMF sold 44% of their gold a few months ago, so he's selling all his gold. He told me that when the IMF sells gold, he does too.

Gold sales were approved in the amount of 403.3 tonnes...representing 1/8 of IMF total Gold reserves.

Sales to date = 212 tonnes:

India - 200 tn

Sri Lanka - 10 tn

Mauritius - 2 tn


Click the "Source" link below. The last time the IMF sold/auctioned Gold was 30yrs ago...1976 to 1980...1/3 of it's reserves at the time.

Auctions and "restitution" sales (1976–80).

The IMF sold approximately one-third (50 million ounces) of its then-existing gold holdings following an agreement by its member countries to reduce the role of gold in the international monetary system. Half of this amount was sold in restitution to member countries at the then-official price of SDR 35 per ounce; the other half was auctioned to the market to finance the Trust Fund, which supported concessional lending by the IMF to low-income countries.

Source

Market reaction 1976 - 1980 ....

[atsimg]http://files.abovetopsecret.com/images/member/8ddbff10fc87.jpg[/atsimg]

Originally posted by eArth33lr
This raised a red flag for me. Because if they sold that much gold in one day (ie:200 tons to the Reserve Bank of India), you would think the markets would have reflected that in some way, like gold dropping in price a few hundred dollars. But gold hasn't moved all that much and still sits over 1100 oz.

Actually , the market reacted in dramatic fashion to the recent IMF/India sale....again to the upside.

IMF Announces Sale of 200 metric tons of Gold to the Reserve Bank of India
Press Release No. 09/381
November 2, 2009

The International Monetary Fund announced today the sale of 200 metric tons of gold to the Reserve Bank of India. This amount represents almost half of the total sales volume of 403.3 metric tons that was approved by the Executive Board in September.

Full Text

[atsimg]http://files.abovetopsecret.com/images/member/521f4c7297d0.jpg[/atsimg]


Moral ? When the IMF sells...it's time to buy.

IMF Gold "sales" never see the open market. As in 1976 - 1980 , the remaining 191.3 tonnes will simply shuffle between central bank vaults. Net central bank selling across the past two decades compensated for the annual supply/production deficit...artificially depressing prices. In 2009 CB's became net buyers.

You might want to submit this post for your financial adviser's consideration. With all due respect...I think he needs to advance his Gold IQ.

reply to post by OBE1


Thanks alot for the info. i will definitely forward that article to my financial advisor.

reply to post by eArth33lr

You're more than welcome eArth33lr. Over the past two years , various aspects of this IMF sale have been repeatedly trotted-out in an attempt to spook in the market at key intervals....options expiration next week , and a large amount of US debt financing to boot.

History tells us these "sales" are ultimately POG bullish , and it seems that investors are gradually wising-up. As someone that holds core long positions in physical bullion , CEF , and assorted miners , I wish the IMF could dump the entire lot. A number of CB's appear anxious to diversify.

GLTY

Having failed at blatant , back-to-back take-down attempts after hours , the cartel might be in for a long weekend. I'm probably as surprised as they are by Gold's resilience in the US market. Barring another "announcement" , Monday's floor session could amount to an all-out war for $1100. Here's hoping the bulls overwhelm.

I thought you might appreciate a couple of on-topic follow-ups eArth33lr.

Snips:

More IMF Gold Propaganda

Jeff Nielson
February 18, 2010

Upon awaking this morning, the first thing I heard when I turned on BNN was brief mention that the IMF was "re-announcing" the sale of the second half of the same gold-sale which had already been announced on a half-dozen occasions - over a period of a year and a half.

Recognizing immediately that this was simply more of the same, IMF propaganda, I went to where I always to go when I'm looking for the latest gold propaganda: KITCO. Sure enough, staring me in the face at the top of the page was the headline

"Gold Steadies As Traders Digest IMF Gold Sales News".

This is simply too hilarious - since there is absolutely zero news to "digest". The IMF is not selling this gold today. In fact, it did not announce the sale of one ounce of gold. All it did was to repeat information which the market has been in possession of for six months. It still has a little less than 200 tons of gold to sell, it is still ready and willing to sell most or all of it to central banks. Most importantly (and what was somehow 'forgotten' in the Kitco propaganda) was that the IMF has five years to sell this measly 191 tons (see "New Central Bank Sales Agreement Very Gold-Bullish").

Full Text

***

IMF Gold Sale Will Likely Backfire On US Government
By Patrick A. Heller on February 19th, 2010

Also, the timing of this announcement is mighty convenient for those looking to suppress the price of gold. Next Tuesday is an options contract expiration date. There are over 5,000 call option contracts at a strike price of $1,100 calling for delivery of physical gold (over 500,000 ounces). Dealer gold inventories on the COMEX are down to 1.65 million ounces and falling fast. So, if the gold price closes below $1,100 next Tuesday, that buys a little breathing space for the US government. Should it close above $1,100, these options would be exercised, creating a significant supply squeeze. By softening up the price a few days early, the IMF is cooperating with the member central bank having the largest voting power.

Full Text

reply to post by OBE1


Wow, just Wow.

Thanks a mill for that bud. I knew something stunk. It sounds to me like they just keep trying to prolong the inevitable am i right?

I think the smart thing would be to hold onto what gold i have, and if the market does take a dip soon from some future propaganda like this i'll get some more

I've done pretty good so far making 38% on my high risk investments, and 37% on my medium risk ones. Mainly of gold, canadian energy and equity, silver, and a few others. I told him to invest in things that will survive a potential collapse of the US dollar. so far so good, but i want to stay on top of things so i know when to sell.

Another funny thing was i was talking to a banker at the Business Development Bank of Canada. We got into this whole conversation about the IMF selling this gold. In the end I told him they are all corrupt and because of their policies most of us have to live as debt slaves. He disagreed and said that there is no way the IMF is corrupt.

I giggled and told him he should do some homework.

Thanks again for this info!

[edit on 21-2-2010 by eArth33lr]

Nice [unusual] outside reversal today off a couple of conflicting news items:

Pravda: China To Purchase Half of IMF's Gold

Pakistan Daily Times: India seen as potential buyer of IMF gold


All on the heels of Monday's World Gold Council announcement:

China Isn’t a ‘Realistic Candidate’ for IMF Gold, Council Says


Truth ? Fiction ? Economic warfare ?

Russia...Pakistan manipulating the POG higher against the financial interests of rival states ?

Smoke = Fire ???




Despite a lack of confirmation from Beijing today , Andy Hoffman ran with the Chinese story....

CHINA and the GOLD PRICE - POINT OF INFLECTION?!?!
Thursday, 25 February 2010
By Andy Hoffman

Today’s announcement by the Chinese government that they plan to buy the remaining 191 tonnes of IMF gold (if it even exists) is possibly the most important event in the ten-year gold bull market, and perhaps could turn out to be the inflection point from when the public believes the propaganda about gold and starts to disbelieve, yielding the commencement of the latter stages of the PM bull and the early stages of American economic, political, and social chaos.

Full Text

In my years of watching the price of Gold , attempts at market manipulation via media reports has never been more flagrant.

The escalation is not a healthy sign my friends.

China buying IMF gold" story unfounded: author

BEIJING (Reuters) - The author of an article that said China had confirmed it would buy 191.3 tons of gold from the International Monetary Fund said on Friday she didn't have official sources for her story.

Full Text

Along with some interesting commentary from Jesse who seems about as perplexed as I am over the recent spat of wild rumor-mongering and related price volatility.

Currency Wars ?

maybe

currencies have certainly been on the defensive.

Whatever....unusual in frequency and kind of unhinging.

More Denials on the IMF Gold Purchase by China
26 February 2010

No official denial, but lots of doubts.

The whole thing seems odd, from the story to the doubts to the blatant bear raids and price manipulation being conducted almost every day with the New York open around these option expirations on the futures contracts.

Just yesterday we saw rumours floated in the SP futures pits that triggered a striking turnaround in the US stock indices, shortly after Goldman bought a large number of SP futures contracts. When the rumours were proved false, the forced buying continued.

Gold and financial assets in general are becoming even more political than usual. Expect this to intensify as the recomposition of the SDR and the international reserve currency are negotiated this year. The Anglo-Americans are the status quo on this one, and the integrity of their motivations and reports and transactions are definitely on the table.

We may be seeing the next stage of the currency wars that are so many things to different people. But in the end, it involves the artificial control of wealth and transactional flows, as they conflict with public policy and national and private interests.

source

[edit on 26-2-2010 by OBE1]