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pencilvanian
1000+ Penny Miser Member
2035 Posts |
 Posted - 05/06/2008 : 19:27:17
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http://tinyurl.com/4vhzdt
IMF moves toward gold sales
WASHINGTON (AFP) - The International Monetary Fund board of governors Tuesday approved a new program that calls for the sale of 403.3 tonnes of IMF gold reserves as part of a wide-ranging financial overhaul.
............Governors from 176 of the Fund's 185 member countries cast votes, with all in favor of the plan. Approval required a majority of the votes cast.
"With this decisive endorsement, the Fund's members have once again demonstrated their support for reforming key components of the institution's framework, including its financial structure," IMF managing director Dominique Strauss-Kahn said.
............The sale, amounting to some 12 percent of its gold reserves, could yield around 11 billion dollars, IMF officials said last month. This would help finance a reorganization of the institution as it seeks to survive a downturn in lending to troubled countries, its main income source.
The IMF said the plan calls for gold sales to be "conducted in a transparent manner with strong safeguards to ensure they do not add to official sales and avoid any risk of market disruption."
...............This is going to put pressure on gold's price short termm but lower price for the yellow metal means more for gold buyers. I suspect this will have a spillover effect on silver's price too.
The bright side to all of this, after the IMF gold is absorbed by the market the price of gold will reflect real supply and demand, not supply and demand effected by the dumping of gold on the market.
Sell when the fools are buying and buy when the fools are selling, and the fools are still selling like mad.
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Ardent Listener
Administrator
USA
2627 Posts |
Posted - 05/06/2008 : 19:42:59
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| Sounds like they are pawning the family silver so to speak. I can't see how they will be able to come out ahead over the long run doing this. This is looking more and more to me to be a PM buying opportunity this spring/summer. |
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misteroman
Moderator
USA
1246 Posts |
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fiatboy
Administrator
912 Posts |
Posted - 05/06/2008 : 23:52:54
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| Nearly every time such gold sales are made, the price rises shortly afterwards. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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Hold off buying gold until this sale is done
