4/5/09 IMF Announces Gold Sales

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

As the G20 meeting closed in London, it was announced that the IMF would sell 403 tons of their gold supply. The stated purpose was to raise cash to loan money for poorer countries????Of course, no one would state that the purpose was to trample the price of gold as demand around the globe continues to surge. But consider the amount of cash raised in this sale would only amount to about $8 billion. This is chump change for those familiar with US bailouts. The entire amount represents AIG’s cash deficit every month. How much impact can $8 billion have on the world’s poor? Another overlooked consideration is that the sale of this gold has a detrimental effect on the poor African countries that depend on gold mining as their most important industry. It drives the price of gold lower which results in the more marginal mines being closed down and workers get laid off. The only thing being accomplished with this announcement is a ploy to lower the price of gold.The IMF is being groomed to be the one world Central Bank of the future. Like the Federal Reserve in the US, they have to learn how and when to cap gold when it appears the gold price is about to take off. The truth is that this sale will have very little true impact on the price. Central banks from China, Russia, India, the Middle East etc will probably compete with each other to buy the entire amount. It’s not like the IMF will show up at the COMEX one morning and start selling 403 tons of gold.
In the past, the anti-gold cartel has used these announcements to achieve their own illegal purposes. Oftentimes, the sale doesn’t even take place. In fact, the 403 ton sale was actually first announced a year ago. The media doesn’t say that it takes a vote of 85% of their membership before the sale is even approved. As in the past, you can be assured that after a small blip down resulting from this, the price of the precious metals will resume their march upward.


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