The Financial Times reports that the International Monetary Fund might consider selling its stock of gold to provide debt relief to poorer nations. The IMF has about $45 billion market value vs about $9 billion on the books. I take it that if they decided to sell the stake, it would put maybe 100 millon oz on the market, maybe not all at once. But think about this before we get ahead.
The IMF has no intention of selling any significant amount of gold. Any gold they put up for sale would be sucked up by eastern interests immediately. And then they would have even less gold to TALK ABOUT selling.
What they do want to do is TALK ABOUT selling for as long as they can so as to creat worry in the gold market. Once they really sold, their bluff would be called.
Unfortunately for them, over time, their TALK will be taken even less seriously than it is now as you can only cry wolf so long until it no longer has any impact.
The IMF and the western central banks are slowly but surely losing control of the world financial system and the eastern interests are slowly gaining control as they gobble up the worlds true historical reserve; gold.
It would not get to market. China and or Japan would come in to buy it in one major buy. It could diversify the reserves without upsetting the markets. PS - it won't happen, the USA has veto power over the sale. The IMF uses this tactic, just like the FED to jawbone down gold.
Greetings again sir..one other thing...in line with agreement the EU dumped some 47 tonnes...since the IMF values their 103 million oz at around $40 oz and the EU sold theirs at market so believe that ought to be some consolation to the sorry chap...regards, groucho
Greetings mesondk...that is what Chancellor Brown wants...would note the illustrious fellow sold the BoE's gold under market to assist in gold price suppression and took a huge loss on the sale...needless to say didn't set well with the Brits...would also note that it is highly likely that the U S candidate Wolfowitz will ascend the IMF throne at the World Bank...a curious choice until one looks at his background as he has no banking knowledge at all...the IMF has NEVER sold its gold...one time to deal with the poor nations it "revalued" its gold to deal with some of the debt...to my knowledge NO gold has left the IMF since it got there...and one might ask whose gold is it and who would be in a position to buy it?...there is no question IMHO that gold would be snatched in a heartbeat leaving more than one western CB on the short end if in fact it was to sell on the open market..there is IMHO absolutely no chance one oz will leave the IMF vault...regards, groucho
That would be a neat trick IF they really had any gold to sell!! A significant bulk of their so-called bullion is in the form of IOU's, leased out, payment pending, delivery pending. Only thing in those vaults are hungry mice chasing dust balls!!