After years of selling it, IMF plans to buy $2 billion in gold

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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