IMF Gold Sales – Much Ado About Nothing
Jason Hamlin submits:
Finmarket, a Russian news agency, reported that China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction. The author came out an hour later to state that she did not have confirmed official sources, although the IMF declined to comment.
Many investors, myself included, considered the IMF gold sales to be much ado about nothing. I figured that if the IMF really did offer up physical gold, China or another country would step up eagerly to reduce their exposure to increasingly toxic fiat dollars. I still feel this to be the case, but certainly understand why Chinese authorities would not want the news leaked before the purchase. They could be forced to pay a much higher price for those 191 tonnes if the market moves first. However the dust settles on this story, I believe precious metals are certain to make new highs before the end of the year.