2/28/10 China To Buy IMF Gold

Precious Metals Market Analysis, By Michael Pennington (Copyright 2010 Pennco Coins)

According to the Russian owned state newspaper, Pravda, China will use the funds it raised from selling $34 billion in US Treasuries to purchase the 191 tons of Gold that the IMF says it will sell. This seems logical since the Chinese, like many wealthy Americans, are trying to convert their dollars into hard asset commodities, and there is none better than Gold. We may not get confirmation from the IMF, but it seems reasonable that it will be a Central Bank who buys from the IMF since they said it would be an out-of-market transaction. This should help propel the price of gold higher as it already has, but more importantly it could also establish a strong support level at that price just as did when India recently bought their 200 tons.

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