Skip to comments.Sri Lanka Buys 10 Metric Tons of Gold
Posted on 11/26/2009 5:15:01 AM PST by george76
The International Monetary Fund said Wednesday that it has sold 10 metric tons of gold to Sri Lanka, the third customer to acquire a portion of its gold holdings.
The IMF in September finalized a plan to sell 403.3 metric tons of goldan amount equivalent to about one-eighth of its total holdings.
The IMF previously announced the sales of 200 metric tons of gold to India and 2 metric tons to Mauritius.
(Excerpt) Read more at online.wsj.com ...
However, since the USA kicked in a bunch of money and other support to start and operate the IMF, I personally wonder if the proceeds from the profits should be distributed back proportionately to the countries that funded the IMF. Don't expect anyone in the State Dept. however to share that view.
The real question is why are all those countries dumping dollars in favor of gold?
Gold peaked over 1200 yesterday, and finished at 1193, up 20% in a couple of months. Those predictions of 2k an oz gold are looking better all the time.
Ok, accuse me of being in the “Tin Foil”hat squad, but where are all these cash for Gold places you see on TV get their cash? Could it be some sort of international thing to get Gold, since the dollar is going to be taking a dirt nap soon?
There is a tread somewhere on FR about the paltry amount of gold held at Ft Knox. Something like 2-400 billion. Consider the US hugely deficient in gold holdings - China or Russia likely hold the most. Which is why the dollar is falling as Soros and others seek to devalue it - the US is broke, even though there likely is lots of gold on US soil, but closed to mining by 'environmentalists' - read the Tides Foundation. Just like our 1.35 trillion barrels in oil and coal reseves.
Gold has had an incredible run-up. It could consolidate/correct a bit, but IMHO it is still headed north.
I look at this differently — I look at this as the US$ sliding lower more so than gold rising, because I think that is the specific reason for the rise.
The US$ is considered a toxic asset worldwide ... This was months and months ago, but I read back then that on the black market overseas in many places, they didn’t even want the US$. If that was true then, how much more so it must be now.
I agree totally. It isn’t that the price of gold is higher it is that the value of the US is lower. I too think that gold will continue to rise.
"In 2008, faced with a shortfall in revenue, the International Monetary Fund's executive board agreed to sell part of the IMF's gold reserves. On April 27, 2008, IMF Managing Director Dominique Strauss-Kahn welcomed the board's decision April 7, 2008 to propose a new framework for the fund, designed to close a projected $400 million budget deficit over the next few years. The budget proposal includes sharp spending cuts of $100 million until 2011 that will include up to 380 staff dismissals."
These countries can’t pay for water, sewage pipes, and power plants.
But get gold for their “religious” and “keep in power” wars.
Above link: lots of information on the confusing status of IMF gold holdings. It still remains confusing. The current tungsten effect also muddies all gold waters.
“http://www.freerepublic.com/focus/f-bloggers/2395057/posts According to this article, In short, millions (with an m) of gold bars are fake! That may answer my question.”
Problem being that according to the US Mint, it doesn’t have millions of gold bars, only 360 odd thousand 400 oz bars.