Sunday, April 17, 2005

IMF Gold Sale

Looks like the threat of IMF gold sales will remain until September.

"Selling part of the 3,217 metric tons of gold will be included in proposals being drafted for the next IMF gathering in September", U.K. Chancellor of the Exchequer Gordon Brown said on April 16.

With news reports reading "IMF Gold Sale Accord For Debt Relief Still Seen Far Off"

When in actual fact the IMF gold sale has been stopped already by the U.S. who is the largest shareholder of the IMF, with a 17 percent voting stake. This is enough to block an 85 percent majority required to approve the IMF gold sale, as I reported in a previous blog entry "IMF Gold Sales Stopped"

After the G7 meeting on the weekend, the official statement was "we're still far from an accord".

Seems like a excellent tactic to hold the gold price lower by leaving the threat of the IMF gold sale on the table for as long as possible. Even though the top US, French, German and Canadian spokesmen have rejected IMF gold sales

WASHINGTON Reuters reported that German Deputy Finance Minister Caio Koch-Weser said on Sunday he saw almost no chance of a plan to sell International Monetary Fund gold to fund debt relief for the world's poorest nations would be adopted.

"I see no big chances for that anymore," Koch-Weser told Reuters in an interview.

French Finance Minister Thierry Breton made a similar statement "I don't think this question has any real prospect," he told reporters.

The gold price is right on the long term uptrend at the moment it will be interesting to see if the gold price goes lower from here. If it does it could be one of the last good buying opportunities before the gold price goes much higher.

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