If the following information regarding a potentially large purchase of IMF gold by China is true, then the price of gold should be getting ready to go up!
Last time gold went up substantially was when India made a fairly substantial purchase from the IMF as well. Back then, gold went up almost $50.00 within 24 hours, and continued up above 1,200!
China is very wisely getting rid of their U.S. Treasuries, and other U.S. Dollar reserves by swapping their soon to be worthless Dollars for this very precious commodity.
While the rest of the world continues to pump massive amounts of liquidity into their economies to further fuel this artificial economic recovery, China, India and a few other savvy countries are stockpiling and assuring they have gold, silver and other commodities.
China To Purchase Half of IMF's Gold
25.02.2010
Source: Pravda.Ru
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.
China’s interest in international trade is connected with the development of the nation’s economy, as well as with the growing consumer demand in the country.
“Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market,” the agency reports.
Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said.
The IMF has received the profit of $7.2 billion from gold sales. A part of the funds is to be used for crediting poor countries.
No comments:
Post a Comment