China To Purchase Half of IMF's Gold

China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.

World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.

The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009. India, Mauritius and Sri Lanka purchased about 212 tons of the amount at the end of 2009. India purchased most – 200 tons.

Whoa! I wonder if these large quantity purchases are unique to last year and this year, or fairly common in recent history. From my viewpoint I get the gut feeling that China and India see what’s coming and are preparing for a real SHTF financial meltdown scenario.

“...I get the gut feeling that China and India see what’s coming and are preparing for a real SHTF financial meltdown scenario.”

They ain't buyin’ it to make earrings!

BTW: if you're at all interested, the Indians bought that 200 tons last year at $1040/oz; so that makes that figure a fairly stable floor price these days.

“Government is the only institution that can take a valuable commodity like paper and make it worthless by applying ink.” Ludwig Von Mises

Awesome to see someone busting out Mises. Needs to be done more on FR. The Austrian School of economics, as well as the Chicago School, hold the answers to liberating our economy and resolving our onerous and Byzantine monetary and fiscal systems.

Unfortunately, our POTUS doesn’t speak “austrian”, and even though he spent time in Chicago, he obviously never had the time to study the Chicago School of Economics....

the term “Chicago School” is associated with a particular brand of economics which adheres strictly to Neoclassical price theory in its economic analysis, “free market” libertarianism in much of its policy work and a methodology which is relatively averse to too much mathematical formalism and willing to forgo careful general equilibrium reasoning in favor of more results-oriented partial equilibrium analysis. The Chicago school is associated with neoclassical price theory and libertarianism in its support of lower taxation and private sector regulation, but differs from pure free-market economics in its support of government-regulated monetary policy

Below is a quote from the Obama worldtour 2009 he took after his swearing in ceremony......

“It was also interesting to see that political interaction in Europe is not that different from the United States Senate. There’s a lot of — I don’t know what the term is in Austrian — wheeling and dealing — and, you know, people are pursuing their interests, and everybody has their own particular issues and their own particular politics.”

"I don’t think China ever said they would not be buying."

ChiCom gold purchase policy was reported here last November. The source was a ChiCom paper. Pravda does not have much of an exclusive here.

Chinese official: China should increase its gold holdings to 10,000 tons

yitbos

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.