Monday, September 21, 2009

IMF Finally Selling That Much-Ballyhooed 400t of Gold? To Whom?

IMF to sell 403 tonnes of gold to boost lending to poor

"WASHINGTON — The International Monetary Fund said its executive board on Friday endorsed the sale of 403 tonnes of gold, worth an estimated 13 billion dollars, to boost its lending capacity, particularly to poor countries.

The IMF said in a statement the sales would be "in a volume strictly limited to 403.3 metric tonnes, with these sales to be conducted under modalities that safeguard against disruption of the gold market.""


China weighs purchase of IMF gold

"BEIJING, Sept 21 (Reuters) - China is considering buying gold being offered for sale by the International Monetary Fund, Market News International said on Monday, citing two unnamed government sources, but the report could not immediately be confirmed...

...The IMF has said it will try to sell the gold, one-eighth of its holdings, to central banks. If there are no takers, it could sell to the market, which saw world gold demand of 3,880 tonnes last year, according to World Gold Council figures."