Cloudsweeper99

Half of IMF gold sold, and hardly a dent in the price.

India Buys IMF Gold to Boost Reserves as Dollar Drops
By Thomas Kutty Abraham and Kim Kyoungwha

Nov. 3 (Bloomberg) -- India, the world’s biggest gold
consumer, bought 200 tons from the International Monetary Fund
for $6.7 billion as central banks show increased interest in
diversifying their holdings to protect against a slumping dollar.
The transaction, equivalent to 8 percent of world annual
mine production, was the IMF’s first such sale in nine years and
propels India to the ninth-biggest government owner globally,
according to figures from London-based research company GFMS Ltd.
The country previously held 358 tons, the data show. The news
was a “surprise because everybody was talking about China being
the buyer,” said James Moore, an analyst at TheBullionDesk.com.
“The fall in the U.S. dollar seems to be pushing all the
central banks to strengthen their portfolio with gold,” said
N.R. Bhanumurthy, professor at the National Institute of Public
Finance and Policy in New Delhi. “Gold is a safe store of value
compared to the U.S. dollar.”
Gold for immediate delivery was little changed at $1,057.63
an ounce at 6:52 p.m. in Singapore and was about $13 below its
record $1,070.80 an ounce reached Oct. 14. India purchased the
gold at an average price of about $1,045 an ounce, according to
an IMF official on a conference call.