IMF Gold Sales Prove Economists Aren't Great Money Managers

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...Only a bunch of economists would look at an asset that has gained about 20 percent per year for the last six years and figure, "It pays no dividend and therefore provides no income, we must sell this and purchase bonds that will pay four percent."

Clearly, with the recent announcement that the G7 has approved IMF gold sales to help balance the IMF's lopsided budget, only one of two possibilities exist when it comes to the price of gold and economists.

There really is a coordinated plan to suppress the price of gold.

Economists are the dumbest money managers in the world.

Of course, it could be some combination of the two. This report from Reuters provides all the latest details:

The Group of Seven rich nations on Saturday approved the sale of gold by the International Monetary Fund from April as part of a broad reform of its budget, Italian Economy Minister Tommaso Padoa-Schioppa said...

Morgan Stanley analyst Stephen Jen said the Fund held 103.4 million ounces of gold worth some $92 billion at current market prices. That was up from $23 billion just five years ago.

"The IMF is rich, if it wants to be," he wrote in a recent note to clients, issued before the G7's approval of the gold sales. "This is arguably a good time to consider selling some of these gold holdings and investing the proceeds in financial securities with positive yields."

No, the IMF is already rich - it would make itself a lot less rich with the sale of gold.

Only a bunch of economists would look at an asset that has gained about 20 percent per year for the last six years and figure, "It pays no dividend and therefore provides no income, we must sell this and purchase bonds that will pay four percent."

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