Several major news stories broke last week that all should have sent the price of gold soaring. Gold did rise 5.3 percent, which did not reflect the importance of the developments. There is a theme to the eight news items cited here. China has been buying large amounts of gold, it wants even more and the U.S. banking system is still in dire straits. What this means is obvious, but if you are willing to dive in with me here, the details follow: Let's look at these news items, then discuss why the price of gold, in my judgment, did not fully react. Story 1: About 10 days ago, the Gold Anti-Trust Action Committee filed a new set of Freedom of Information Act requests with the U.S. Treasury and Federal Reserve to seek information on the U.S. government's gold swap activities. The first attempt to dislodge this information was filed in December 2007, with dismal results. After carefully analyzing the loopholes used by the Treasury and Federal Reserve to avoid disclosing the requested information, these revised FOIA requests include detailed instructions to overcome the government's obstacles. For example, one FOIA request noted that the agency was unable to uncover where its own public Web site discussed gold swap read more here http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=6632
I believe the IMF is selling their gold, which probably offsets China's buying and leaves the price basically unchanged. Perhaps the IMF has a direct sale agreement with China and the gold doesn't hit the open market at all.
Imf ? I believe the gold the IMF holds 3200 =or - tons belongs to the member states. How it would affect their countries is rather cloudy. America probably has a rather large stake in the pile. Pep
My understanding is that the IMF "owns" the gold in the sense that they get the proceeds from a sale, but can't sell it without obtaining permission from the member countries.
I've read several articles recently (WSJ & Bloomberg) that the IMF does have permission to sell gold in order to furnish loans to developing countries. It is thought that the sale of the gold will probably have little effect on the overall price movement of gold. More controversial is the structure of the IMF. It is top heavy with bureaucrats and the number of economists it employs. In other words, there's a lot of inefficiency built into this organization.
I read the same thing. But I'm not so sure that it will have little effect on the gold price. It could have a substantial but temporary effect. It would be a buying opportunity.
The move ? Gold looks like it wants to break out now. i thought it would settle down for the summer and get going strong towars years end. There is no place to put cash, and get a major return right now. Actually if you keep even with inflation your doing good. The spread between spot and in hand is opening up a bit. Silver has to go for those who do not want to fund gold or have the budget. Metals should be good for a few years if we keep driving this bus over the cliff ! Pep Being a realist will try your best ideas in the near future.
It could happen this way of course...just because an article has the imprimatur of Bloomberg or WSJ doesn't mean that the author's assumptions will prove correct. I have been surprised in good and bad ways with my investments in precious metals.
The Link in the first post to numismaster.com I read the link to numismaster.com and when it mentions the Turner Radio Network giving bank test results that were false;i assumed Turner Radio was a Ted Turner company.This has nothing to do with Ted Turner. Turner Radio is run by Hal Turner in New Jersey.Check him out in Google & Wikipedia, he is a crackpot. On 12-06-06 he was quoted "we may have to assassinate some of the people you elected on November 7th." Why is he quoted by economists as it negates everything else the writer has written. :bigeyes:
