Thursday, February 25, 2010

JUMP BALL For the IMF Gold...

Looks like India is now going to compete for the IMF gold, along with China.  From The Daily Times of Pakistan: 
India’s central bank, which has increased its gold holdings to diversify its reserves, looks set to be a buyer again when the International Monetary Fund begins selling 191.3 tonnes of the precious metal amid volatility in major currencies...The uncertain outlook for two of the world’s major reserve currencies — the dollar and euro — provides a spur for central banks, including India’s, to buy gold. India’s gold holdings lag those of major economies despite a big purchase in October.
Here's the full link:  India Wants More Gold

This reinforces the idea that the 191 tons of IMF gold for sale is the only large chunk of gold available in the context of the current price range ($1000 - 1200/oz.).   This raises the possibility that the big buyers of gold out there, once this 191 tons clears the market, could be motivated to drive the price of gold a lot higher, up to the next price level at which a large seller might be induced to put a large "chunk" up for auction.

2010 could be a very interesting year for the yellow dog.


  1. Any color from overseas on the quality of those sources? Gold behaving more like the big disconnect is just ahead dude, shares another matter but even those are acting well when Gold reverses.

    Sentiment is poor across the spectrum and with everyone looking down... well, you know.

    Thanks for the insights dude, keep up the excellent work.

    Your compatriot pirate amigo

  2. Thanks for the feedback J-Mac.

    Waiting to hear back from my buddy on that source of the China news. The India news about the IMF gold was in several spots, so I'm sure it's good.

    Sometimes my buddy can be a little flakey w/email, but I'll give ya a jingle when I get any color.

  3. [The India news about the IMF gold was in several spots, so I'm sure it's good.]

    dave these multiple spots are just quoting each other...

  4. "He said/she said" - bottom line is that both India and China want/need a LOT more gold and if this IMF 191 tonnes is bona fide and not just an accounting adjustment like the first 212 tonnes, then there is no doubt in my mind - or in the minds of others who have scrutinized this market for at least 9 years, that India and China are in the hunt for this 191 tonnes.

    All else is noise. BUT, where there's smoke, there's fire and there's a lot of smoke coming out of Asia regarding this 191 tonnes.