Re: Analyst: IMF seeking to depress gold price
Dave Tahija
location: Butte, Montana, en route from San Francisco to Juneau
listening to: Train - Save me, San Francisco
registered: 1999.12.27
posts: 261
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The IMF has been seeking approval for this for a long time, a year at least.Many of the poor countries who used to be their customers aren't asking for IMF loans any more, generally because they've become prosperous enough that they have access to other credit sources or even don't need to borrow money.This has meant less cash flow through the IMF, which translates to less money to pay staff and expenses. Since the number of IMF staff hasn't decreased with the volume of business (perish the thought), the IMF bigwigs want to raid their gold holdings to pay expenses. The member countries had to sign off on the plan, which took a while to arrange.The industry articles I've seen don't see the sale as having a big impact on prices.If you want to follow gold news, I recommend http://www.kitco.comIt has current metal prices, news and commentary on gold and other precious metals. The commentaries cut across the spectrum from technical discussions through gold bug cheerleading to the GATA conspiracy theorists. I haven't seen any GATA comments on the IMF sale but it would come as no surprise if they were alarmed about it. I don't pay a lot of attention to the GATA boys though.All I know is, it's a great time to be in the gold mining business.
D
Dave Tahija
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The IMF has been seeking approval for this for a long time, a year at least.Many of the poor countries who used to be their customers aren't asking for IMF loans any more, generally because they've become prosperous enough that they have access to other credit sources or even don't need to borrow money.This has meant less cash flow through the IMF, which translates to less money to pay staff and expenses. Since the number of IMF staff hasn't decreased with the volume of business (perish the thought), the IMF bigwigs want to raid their gold holdings to pay expenses. The member countries had to sign off on the plan, which took a while to arrange.The industry articles I've seen don't see the sale as having a big impact on prices.If you want to follow gold news, I recommend http://www.kitco.comIt has current metal prices, news and commentary on gold and other precious metals. The commentaries cut across the spectrum from technical discussions through gold bug cheerleading to the GATA conspiracy theorists. I haven't seen any GATA comments on the IMF sale but it would come as no surprise if they were alarmed about it. I don't pay a lot of attention to the GATA boys though.All I know is, it's a great time to be in the gold mining business.
