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.

LostDutchman

I expect to see it test $1,100 or even $1,125 by weeks end.

__________________
Matt Dinger
Lost Dutchman Rare Coins

mikenoodle

or maybe by the end of tomorrow! geez, did you see what gold is doing today???

__________________
Begin somewhere. You can not build a reputation on what you intend to do. - Liz Smith - Gossip Columnist

LostDutchman

Still a few hours left.. it very well could.

__________________
Matt Dinger
Lost Dutchman Rare Coins

Cloudsweeper99

I've written elswhere that the IMF gold sale would be viewed as a positive by the market if it ever occurred because it would remove one of the last large gold holdings likely to come to market. It's a bull market in gold regardless of what some "experts" like John Nadler at Kitco and CNBC tell you.

JoeSmith

Is this a sign the world is moving away from the dollar, to a gold standard?

mikenoodle

More of a sign that the dollar is buying less and less gold.

__________________
Begin somewhere. You can not build a reputation on what you intend to do. - Liz Smith - Gossip Columnist

yakpoo

Cloud, that makes sense...but this sale only represents half of the currently announced IMF sale of 403 tonnes...which represents only 1/8 of their total holdings. Seems like they still have quite a bit left in reserve. I guess you're point is that the remainder isn't..."likely to come to market".

Cloudsweeper99

The more gold the IMF sells, the higher the price will go because it eliminates the only remaining large supply in the world that is likely to be sold. Keep in mind that the sales will be to central banks who intend to hold the gold as part of their reserves. It isn't really a free market transaction.

fretboard

It's moving up at $1084 now. This may be the spike in gold price we've all been waiting on. Whatever the case, it's music to my ears!

Cloudsweeper99

Maybe. I just think it's another up day. Gold will go up some days and gold will go down on other days, but I think the trend is still up.

Yankee

CNBC just announced it is expected the other half of the IMF gold is expected to be bought by China ether today or tomorrow. It was also stated they will be paying FULL spot price. I think you guys are right the price spike will soon happen!!!!!. They also said the gold sold allready was paid for at full spot. no discounts

__________________
This is gold, Mr. Bond. All my life I've admired its color, its brilliance, its divine heaviness. I welcome any enterprise that will increase my stock... which is considerable.
Auric Goldfinger

GoldenFire

And less and less food. In a crunch, you can’t survive off of gold, but at least you get to die rich.

__________________
You’re supposed to leave the world a better place than it was when you entered it.

yakpoo

I guess the thinking is that if central banks are paying "full spot" for the gold, then gold must be a bargain at these levels. I can't say as I follow the logic. But Hey!...I'm all for anything that drives down FS mintages!

Morgan1878

Anyone know how they transport all of that bullion to the India Central Bank?

I suppose most of the way by ship...in a very quiet, non-publicized way.

__________________
Learn how to handle hot things.
Keep your knives sharp.
And above all, have a good time-Julia Child