Fort knox was empty long ago now they guard against people finding out
The International Monetary Fund said on Monday it sold 200 tonnes of gold to the Reserve Bank of India for a total of $US6.7 billion ($7.4 billion) as part of the global institution's plans to increase its lending resources.
The sale is part of an agreement struck in September among IMF member countries to sell 403.3 tonnes of the fund's gold stocks to diversify its sources of income and to increase low-cost lending to poor countries.
"I strongly welcome this transaction with the Reserve Bank of India," the IMF's managing director, Dominique Strauss-Kahn, said in a statement.
"This transaction is an important step toward achieving the objectives of the IMF's limited gold sales program, which are to help put the fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries"
A senior IMF official, speaking on condition of anonymity, told a conference call the gold sales were conducted daily over a two-week period from October 19-30, to "give some protection to short-term fluctuations in the market."
The official said India's central bank paid on average about $US1045 an ounce for the gold and the transaction would be paid in hard currency and not in IMF Special Drawing Rights, the IMF's internal unit of account.
Spot gold prices have rallied since September as dollar weakness has helped to spur consecutive weeks of gains. Gold hit a record high last month of $US1070.40. On Monday, gold rose above $US1060 an ounce as the US dollar fell against the euro.
The IMF official declined to say whether other central banks have expressed interest in buying the remaining 203.3 tonnes of gold on tap for sale. He said if no other central banks came forward, the IMF would proceed as planned to sell the gold in the market.
Reuters
To the gold an silver Naysayers
Silver Stock Report
by Jason Hommel, November 19th, 2009
The best witty observation this week came from Bill Murphy with www.gata.org. Bill noted the irony of how media pundits who bash gold will argue that gold is in a bubble (gold's expensive) in one breath, and then bash it again by saying it's a bad investment because gold has underperformed (gold's cheap) inflation rates since 1980's peak. Murphy's main point is, "how can an asset be in a bubble if it's underperforming inflation?" Or, as I'll put it, how can gold be cheap and expensive at the same time?
If the gold naysayers had the capacity to utilize at least three sets of neurons in their brains simultaneously and engage in rational logical thoughts, they might perceive the contradictory nature of their two arguments, and recognize that at least one of their assumptions might not be true. In other words, gold can not be in a bubble now.
Therefore, gold must be cheap, which is why it's good to buy as an investment, since investors should want to buy cheap things that have underperformed inflation, which then, later, after buying it, it should then outperform inflation, as gold has been doing quite easily since 2001.
It's also dizzying to hear other gold bashers claim that "There is no inflation, and thus no reason to own gold." What?
Well, that's fantastic to hear, because that must mean that all of gold's recent gains from $250/oz. back in 2001, to $1145/oz. today, must be all pure profit, showing that gold's recent 8 year performance is clearly outperforming inflation.
So that brings me to my main point that I've been asking for years.
Why are people happy earning 1% or less in their bonds, when gold has been going up so much for the last 8 years?
How much has gold gone up, on average, per year?
My favorite online compound interest rate calculator does the math.
http://www.smartmoney.com/compoundcalc/
From a $250 initial investment to a $1145 final amount, over 8 years, gold provided a 21% per year average rate of return.
So, which is better, 1-4% in bonds or 21% in gold per year?
You only need half of one synapse firing in your brain to recognize the clear answer to that question.
In case you were not paying attention, 21% per year in gold is better.
If you don't own gold (or something better like silver) by now, after 8 years, you have not been paying attention. So, if that includes you, then pay attention to the following.
I'm shocked to hear people think that higher interest rates will slow down this gold bull market. Do they think that interest rates will exceed 21% anytime soon?
Wouldn't 21% interest rates bankrupt many public companies who would not be able to refinance their debt, and thus destroy stock values, driving many to zero?
Wouldn't such rates crush the housing market, as nobody would be able to afford a 30-year loan at 25% interest?
And wouldn't the transition to such high rates destroy the bond market, as bond values move inversely to interest rates?
Wouldn't 21% interest rates cause the national debt to increase so fast that they would have to print money to pay the interest which would further destroy the currency at those rates if not higher?
And if stocks, housing, and bond values and the currency are all cratering to zero, wouldn't the only place left to put one's assets be gold and silver?
Gold will thus be in a bull market until AFTER interest rates exceed 21% again.
I think it would be wise to assume gold prices will continue to increase at much higher rates going forward, because the gold price has been manipulated lower during this recent time frame, through central bank sales and leases, and the sales of many fraudulent paper gold products (such as "gold pool accounts," allocated and unallocated accounts, certificates, and futures and options) which divert investment demand away from the real thing. But when the manipulation ends, through recognized defaults, the gold price will go much higher, much faster.
Why is gold doing so well? It's rare. It's not created as easily as money on a printing press.
The facts are: Gold is closing in on $1200 per ounce.
What is curious is that none of the respected agencies and mainstream commentators predicted this recent dramatic rise. The facts are: Gold is closing in on $1200 per ounce. This is a price so far outside of official estimates that it suggests that official estimates may be nothing more than wishful thinking. In this case, they are out by at least 2 years.
US Mint - Suspends Sales... Again
The United States Mint has suspended sales of their popular one ounce American Gold Eagle and one ounce American Silver Eagle bullion coins. The suspension was announced in a memo sent to the US Mint's authorized bullion purchasers.
"The United States Mint has depleted its current inventory
of 2009 American Eagle 1-ounce gold bullion coins due to the
continued strong demand for this product," the Mint told its
authorized dealers in a memorandum on Wednesday.
November sales to date were at 124,000 ounces, higher than
the 115,500 ounces sold in each month of September and October,
the Mint said.
The Mint said it expects to resume sales in early
December.