IMF to Dump Gold!

Commercials are wrong as often as the average retail trader.

And a lot of that short position is hedging.




Quote from Sir_Pirate:

looks like i'm a little bit behind the facts...

"US Congress To Approve IMF Gold Sale This Week
By Brian Kelly on June 2, 2009 "
http://www.dailymarkets.com/contributor/2009/06/01/us-congress-to-approve-imf-gold-sale-this-week/

my apologies...

"In order for the IMF to be able to off load the gold, the US Congress would need to approve of the sale, which they did in June of 2009."
http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=13604

truth is last COT showed record high net short commercials position in last twelve months...

regards!
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Quote from adadadog:

I hope someone can shade light on the reasons behind the IMF gold selling action.

I can guess two possible reasons: one is for direct profit from gold dumping, because they (same people who own the Fed, therefore can decide whether to have inflation later on) think there will not have dollar inflation; the second possible reason is to protect the U.S. dollar from further decline. For investors, it is selling time if the former is the case and buying time is later is the case.
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Isn't the reasons clearly stated :
"IMF on Friday endorsed the sale of 403 tonnes of gold, worth an estimated 13 billion dollars, to boost its lending capacity, particularly to poor countries.
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The Group of 20 key developed and developing countries, at their April summit in London, agreed the gold sales should allow the IMF to offer favorable conditions on loans to the poorest countries.
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The IMF said the sales "will also increase the fund's resources for lending to low-income countries
" a strategy that won board backing in July"
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You attempted two reasons, I'll try a third:
The IMF is irrelevant to the policy of central banks. So whether IMF remains or is dismantled does not matter. Better to take back their gold at US1000/oz rather then 10 years on at USD10,000/oz.
 
I think it's a classic case of 'sell the rumor, buy the news".

Why? Because the IMF has declared it's intention to sell part of its gold reserves 18 months ago. If you look at the chart of gold, you will see that the current consolidation also started about 18 months ago. Pure coincidence? Maybe. Maybe not.

What happened now is that the IMF finally made an official resolution to sell the gold. However, this is hardly a surprise. But the 'rumor' finally became 'news'.

It will be interesting to see how price reacts next week.
 
i think i read yesterday an nfl team is building a new stadium for 13 billion - the same amount of gold being sold. on a world scale - it just seems like an inconsequential amount.
 
Quote from niceneasy:

i think i read yesterday an nfl team is building a new stadium for 13 billion - the same amount of gold being sold. on a world scale - it just seems like an inconsequential amount.
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Indeed, the amount of $ this IMF gold is worth is so meaningless when viewed in perspective with what is going on elsewhere in the markets today one can come to no other conclusion then the fact that it is all fearmongering propaganda to scare retail gold bugs out of their position.:)

13 Billion $.... Give me a break.

I know of countries smaller then Iceland that run deficits bigger than that today.
 
Quote from the1:

Ok. so the IMF is selling gold. What does that do to the supply of gold or the demand for gold, or the confidence in monopoly money? It doesn't change anything and therefore, shouldn't change the price of gold. Unless the IMF can change the world's perception of artificial currencies it can only have a short-term influence on the price of gold.

The price of gold is being driven by the perception that the USD is losing it's value. It really has no value to start with but it is perceived as having great value. That perception is beginning to erode, hence the rise in gold. What will the IMF do to restore faith? Perhaps they have the answer to that question but selling their stockpile of gold most certainly will not accomplish that mission.
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About:
The price of gold is being driven by the perception that the USD is losing it's value
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I think it may not be "rigorously" correct. The rise/fall in the gold price will not affect the "strength of the dollar" which conventionally mean the Dollar Index, about which of the central banks are in the worst of shape - Fed, BoE, BoJ, ECB. The vote currently goes to Fed.

The rise of gold is about the smart money choosing between alternatives - equity, housing and properties, bonds, silver, gold, etc. Since 2001, gold was the winner. For the next 10 years, we have to do a slight reappraisal because of the seriousness of the financial and banking carnage of 2008.

An IMF gold auction may just show as a dent in the gold chart.
 
Papa Roach................where is the dissenting opinion. I need to know why I should dump all my gold? And please do not send me to Prechter.
 
Quote from niceneasy:

i think i read yesterday an nfl team is building a new stadium for 13 billion - the same amount of gold being sold. on a world scale - it just seems like an inconsequential amount.
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you may forward this "inconsequential amount" to my paypal account. User ID? "EasyComeEasyGo..."
 
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