Buyer tries to get IMF's 190 tonnes of gold, IMF refuses to sell

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John99's picture
John99
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Buyer tries to get IMF's 190 tonnes of gold, IMF refuses to sell

Remember a few weeks back IMF announced it had 190 tonnes of gold for sale - the news of which drove down prices? And actually, it was not even new news cause it was the left over bullion position from what India had bought weeks earlier. Well, Eric Sprott has started a new gold bullion fund (PHYS) where the shares are exchangeable into physical bullion. He tried to buy this IMF gold, and they wouldn't sell.

IMF Is Now Rejecting Prospective Buyers For Its Gold Stash

In an exclusive report, Kitco has just released yet another stunner in the world of precious metals. It turns out that Eric Sprott has attempted to purchase gold from the IMF, according to information provided to Kitco by Frank Holmes, CEO of US Global Investors. "I just spoke with Eric Sprott, who bid to buy [the IMF's remaining gold on the block] and they refuse to sell it." As Kitco points out, "the IMF might be holding out for a bigger buyer or a central bank or for higher prices. But Holmes argues the IMF's rejection of Sprott's bid means markets are being manipulated." Back to Holmes: "I think there is a lot of manipulation done by governments around the world in the currency markets which affect the bond markets so to me it's just normal course."  Holmes concludes "with an election year there may be a gold rally that could be two standard deviations, or $300 dollars, to the upside. So you could see gold run to $1300 to $1500 quite easily." This all is occurring as ever more pundits finally realize that as fiats are discredited across the world, the only safe, non-dilutable resource is gold.

http://www.zerohedge.com/article/imf-now-rejecting-prospective-buyers-its-gold-stash

Kitco Video at: http://link.brightcove.com/services/player/bcpid61488100001?bclid=56282052001&bctid=73890273001

 

investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
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Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

Things look like they are coming to a head. The government is going to get real desperate soon if employment doesn't turn around.

idoctor's picture
idoctor
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Joined: Oct 4 2008
Posts: 1731
Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

investorzzo the employment will pick up LOL.....they will just keep doing the census til they get it right & then recount it til we have full employment. Pretty amazing how things are going at the moment.

Summer Jobs Outlook: Just as Tough as Last Year http://www.cnbc.com/id/36035913

Mike Pilat's picture
Mike Pilat
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Posts: 929
Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

I don't think the IMF is simply holding out for a better price. Central banks and their cronies are usually more concerned with manipulation than they are with getting good deals on gold. Besides, how do you define a particularly "good" deal when you print the money to pay for the gold?

It sounds like the IMF either never intended to sell and only made the (false) announcement of intention to sell in order to push prices down or something has recently changed the IMF's decision. Either way ought to be sending a signal to the average person, but unfortunately, I doubt many of them are getting the message. It is a bit sad to see so many people getting financially destroyed on mortgages, stocks, and the like, and continuing to drag their heels on tangible wealth until the last minute. But I suppose it's always been this way.

Erik T.'s picture
Erik T.
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Joined: Aug 5 2008
Posts: 1234
Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

Of course IMF isn't going to sell their gold to Eric Sprott! If they did that, they wouldn't be able to reiterate that it's for sale every week or so as part of a downside manipulation scheme!

One part of this story doesn't make sense to me - where would Eric Sprott get the $7.5 billion needed to buy 190t of gold? Surely his new fund hasn't raised that much cash already.

Erik

 

John99's picture
John99
Status: Gold Member (Offline)
Joined: Aug 27 2009
Posts: 490
Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

Don't know the answer, Erik, but he has lots of investment things going on. King World News has a current interview and here is their intro and link:

Eric Sprott has over 35 years of experience in the investment industry and manages roughly $5 billion.  Eric has been stunningly accurate in his writings for quite some time and is one of the highly respected industry professionals who foresaw the current crisis and chronicled the dangers of excessive leverage as well as the bubbles the Fed was creating while correctly forecasting the tragic collapse we are all enduring.  In this interview Eric discusses the stock market, bond market, inflation, deflation, gold, silver, gold stocks, consolidation in the gold sector, the economy, the US Dollar, paper currencies globally, tax revenues going down, layoffs in US government jobs in states, oil and much more.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3/27_Eric_Sprott.html

Erik T.'s picture
Erik T.
Status: Diamond Member (Offline)
Joined: Aug 5 2008
Posts: 1234
Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

As per normal, I can't get anyting out of KWN except the usual 500 Server errors, thanks to the incompetence of their webmaster. I'll keep trying and look foward to the Sprott interview when I get through.

Eric King REALLY needs to fire his idiot webmaster...

Erik

 

Ken C's picture
Ken C
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Joined: Feb 13 2009
Posts: 753
Re: Buyer tries to get IMF's 190 tonnes of gold, IMF ...

I was able to listen to Sprott on KWN this morning and I thought it was a great interview.

He was indeed quite pessimistic on what will happen when interest rates start to move up. ie Game over.

 

Ken

 

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