IMF Gold Sales Seen Winning US Support
Source: miningmx.com (4/8/08)
The once-off sale of 403 tonnes of gold by the International Monetary Fund to bolster its funds is more than likely to go ahead and is not seen to have much impact on the global gold market, said GFMS chairman Philip Klapwijk.
The IMF, in a well telegraphed move, said it was selling the gold to create an endowment with the profits from the sale, which would be held in a “transparent manner with strong safeguards to ensure they do not add to official sales and avoid an risk of market disruption,” said managing director Dominique Strauss-Kahn.
The gold price barely twitched on the news. The gold price was steady above $920/oz and was last at $922/oz.
We bet these sales will be approved. The fact that it still has to clear the American political system – something which could take a while – and the IMF’s commitment to not disrupt the gold market with the sales over several years soothed market worries. The IMF has 3,217 tonnes of gold or 103.4 million oz worth $95.3bn.