Known for repeatedly selling gold (actually the IMF has repeatedly attempted to manage gold prices by simply threatening to sell gold at critical times in the gold market) the IMF is reportedly attempting to purchase $2 billion in gold.  Apparently even the IMF is looking to get out of dollars on the recent mindless safe-haven bounce.

The International Monetary Fund (IMF) is planning to purchase more than $2 billion worth of gold on account of rising global risks. The IMF currently holds around 2800 tonnes of gold at various depositories

“The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis. While the Fund has a multi-layered framework for managing credit risks, including the strength of its lending policies and its preferred creditor status, there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks”, Bloomberg quotes a report by an IMF staff while also adding that a $2.3 billion gold purchase is in the planning…

In such a risky financial environment, the IMF’s move could be considered wise and can be seen as an indication of how much trust the mainstream financial community now has on precious metals like gold.

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  1. Well the righting is on the wall! The hole world is trying to keep gold down! The US dollar reserve is going going gone. Strategy keep it down, buy it up, let it clime. The IMF has already been talking to China about a gold back reserve from them.

  2. Doing some math here, we see that US$2 billion at $1560/oz buys
    1,282,051 troy ounces.  That works out to 39.8762 metric tons using this
    calculator
    .  That’s a significant whack of gold and it’s helpful to translate it into metric tons because that’s the unit usually reported when the IMF sells gold.  

    Remember when the
    IMF last announced a big gold sale?  There have been small sales here and there.  But I think it was the sale to India a couple of years ago that raised quite a few eyebrows.  India took down 400 metric tons (or, at least they got IMF allocation
    receipts, that is;  there’s some evidence that the IMF’s gold is
    double-counted).

  3. It is going to be interesting to see who sells IMF $2 billion  39 tons of gold and where it may be stolen from.    Look for a dead bodies in the Seine or Tiber.  Switzereland just transfered about 43 tons to someone.   Italy showed an accounting irregularity of 46 tons of gold from their stack of  2,440 tons of Gold.  My take is that the Swiss were the intermediary and took  3 tons as a handling fee.  Love those Swiss, they never miss a trick.

     In the series, The Borgias, the last night episode involved some of the Vatican gold stolen by the DiMedici Bank being sent to an offsite bullion bank in another city.  The Pope’s son captured the gold with a goodly loss of life.  That gold was returned to the Vatican to be used for payments to the military.  The war plan involved an attack on Florence.   Moral of the story.  If gold is in play with the IMF, one of the evil troika,  look to pick up some phyzz, there will be some serious war-like sounds.  Whiskey is for drinking, water is worth fighting for. Gold is worth a genocide level event. IMO.  The wierdness is rampant.

  4. You will never know who they buy the Gold from and for all practicle purposes they probably have it already. The IMF will  NEVER let you know what their going to do unless they have done it already.

  5. They have to be involved with a group who has the ability to push the paper price down so they may purchase new gold at a reduced rate from what they previously sold it off at, there by making a profit… And then having the ability to purchase additional metals… That’s my thought… Seems to make sense in my uncivilized thought process… 

  6. UPDATE:

    IMF To Buy Gold? Not

    May 15 2012

    Posted By
    Bron Suchecki

    A great example today of the children’s game Chinese whispers
    (or Telephone for our America friends) and poor journalism in the gold
    blogosphere (thinking the internet is about journalism is idealistic of
    me, I know). I’ll focus on Zero Hedge as the example because they are a
    high profile website from which many other bloggers and commentators
    pick up stories. Knowing how influential they are, you’d expect them to
    at least apply some basic journalism fact checking before breaking news.

    Yesterday Zero Hedge posted
    the following heading “Meet The Latest Converted Gold Bug: The IMF”.
    Its key “news” is this republished quote from a Commodity Online post, also dated the 14th:

    “The International Monetary Fund (IMF) is planning to purchase
    more than $2 billion worth of gold on account of rising global risks.”

    Rather than being the source, Commodity Online’s story is just a rehash of a May 12th Bloomberg story. Note that the above quote is Commodity Online’s take on the Bloomberg story, not a direct quote from the IMF.

    Zero
    Hedge were aware of this, because they also quote directly from the
    Bloomberg story, but that is where they left what is quite significant
    news. As Zero Hedge themselves noted, the IMF had previously been
    selling its gold. You would think such a major policy shift would at
    least warrant some more investigative work. Apparently not. READ MORE

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