Use access key #2 to skip to page content.

IMF Is Now Rejecting Prospective Buyers For Its Gold Stash



March 26, 2010 – Comments (5)

This is a *very* interesting development!!

IMF Is Now Rejecting Prospective Buyers For Its Gold Stash
Submitted by Tyler Durden on 03/26/2010 12:42 -0500

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.

Jesse at Jesse's Café Américain had this very insightful comment on the matter

The gold is slated to cover the central banks who leased out their gold and are now sh***ing their pants because they cannot buy it back in bulk without driving up the price and unsettling the ponzi shorts on Wall Street.  The physical market is tight. If this is not the case, why won't they take bids for it from 'outsiders?' This gold sale and the Bank of England gold sale were in relief of the bullion banks and their government bureaucrats who get caught short.  That is why they abhor the idea of audits as well.  They do not have what they say they have.  They lent it out, and it was sold.

5 Comments – Post Your Own

#1) On March 27, 2010 at 12:18 AM, Tastylunch (28.54) wrote:

funny I've been rejecting buyers for my gold stash for awhile too. :)

The IMF is copying me! Foul! I called it first!

in all seriousness, this is bad. But what else is new.

Report this comment
#2) On March 27, 2010 at 8:39 AM, binve (< 20) wrote:


>> funny I've been rejecting buyers for my gold stash for awhile too. :) The IMF is copying me! Foul! I called it first!


>> in all seriousness, this is bad. But what else is new.

Yessir! I mean Eric Sprott is no schlub. He is a *serious* (i.e. large quanity gold buyer). He runs a hedge fund that holds lots of gold and his new closed end fund PHYS just bought 10 tonnes this month. 

The IMF has been slating to sell this gold for awhile (India bought a big batch of it a few months ago). So this is a situation where the IMF is (at least suposed to be) a serious seller and Sprott is most definitely a serious buyer.

But physical demand and delivery at the COMEX and other gold/silver exchanges (especially in China) around the world has picked up. Just like Jesse says, the market is getting tight.

All these illegal shorts in the market (JPM) are based on paper gold (leveraged) but has to be linked to physical at some level. At like Jesse, I believe it is not there. A serious audit would show the games that are being played by both bullion banks and central banks.

And so after increase in demand over the past few months by independents and retailers, I think it is no surprise that the IMF is getting "cold feet" with respect to selling to an outside party at any price, and is waiting for a bid from an "inside party" under the guise of holding out for the "right price" (which as I described above is BS because they were a net seller at close to this price level previously).

Thanks man!.

Report this comment
#3) On March 29, 2010 at 4:52 AM, XMFSinchiruna (26.53) wrote:

wow... fascinating stuff.

Report this comment
#4) On March 29, 2010 at 10:20 AM, binve (< 20) wrote:

TMFSinchiruna ,

You know it man! I think this year and next will show unprecendent volatility for the gold investor (like you have been forcasting for a while), but it is necessary to buy pullbacks, because gold among all the others, will truly preserve wealth.

I view all pullbacks as a irrationally generous exchange rate between FRNs and real money :)..

Report this comment
#5) On April 29, 2010 at 11:07 PM, Mstinterestinman (< 20) wrote:

Hey interesting stuff Im not too high on gold because it has no coupon return and no real business behind it however if I could  go back to ten years ago I would pick up a midf major gold miner in a heartbeat ;)

Report this comment

Featured Broker Partners