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Jim Rogers Says IMF Will Attempt To Sell Gold - Drive Price to $700

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May 03, 2009 – Comments (14)

INTERNATIONAL. Legendary global investor and chairman of Singapore- based Rogers Holdings, Jim Rogers said he is concerned some institutional gold reserves may be sold, affecting prices in the short term.

In an interview with Bloomberg radio, Rogers said:  “I own some gold, but I am not buying at the moment because the IMF, which is one of the largest owners of gold in the world, is desperate to sell its gold.”

“I’m not selling my gold,”  Rogers said.

The IMF “is trying to get permission from everybody,” Rogers added.

“If and when they sell their gold, they may set a bottom. Who knows? It may go down to US$700. They got a lot of gold to sell. If it does, I hope I’m brave enough and smart enough to buy more.”
 
In an earlier interview Rogers said whether the IMF sells gold or not, the world is expecting them to sell it.

G20 leaders agreed earlier this month that the International Monetary Fund (IMF) should sell gold from its reserve to help stimulate the world economy.

"Additional resources from agreed sales of IMF gold will be used, together with the surplus income, to provide US$6 billion additional concessional and flexible finance for the poorest countries over the next two to three years," a G20 statement said.

The IMF’s board approved a proposal in April 2008 to sell 403.3 metric tons of bullion as part of a plan to close the Washington-based lender’s annual deficit.

David in Qatar

14 Comments – Post Your Own

#1) On May 03, 2009 at 9:33 AM, kaskoosek (36.28) wrote:

I'll be the first to buy.

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#2) On May 03, 2009 at 10:28 AM, checklist34 (99.71) wrote:

its worth keeping in mind that whenever any of these "legendary" investors give free interviews, that their goals probably aren't altruistic

A chance to speak gives a chance to influence which gives a chance to profit

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#3) On May 03, 2009 at 11:02 AM, maxhoffa (< 20) wrote:

the IMF gold isn't a huge reserve though  . . . sell it all, in one day, you just about double the amount of gold moved over a 24hr period.  spread it out over a year, that's what . . . about a third of a percent per trading day?  maybe a half a percent of total volume per day?

i just don't see how it drives price down that far.  we'll see.

 

 

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#4) On May 03, 2009 at 11:41 AM, IIcx (< 20) wrote:

I agree with checklist34 but also consider that the GLD ETF is one of the largest owners of gold bullion.

If the price drops dramatically, it seems logical that they will also be forced to sell into a downturn. 680 was a target I saw posted a while back as an entry point.

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#5) On May 03, 2009 at 12:40 PM, uclayoda87 (29.31) wrote:

If Jim Rogers is correct and gold prices are manipulated down transiently by any institution like the IMF it would likely lead to a transient rise in equity prices someplace else.  If you were lucky enough to own the equities that rose, then shifting some of those profits into a gold ETF would be a nice way to get additional profits when gold rebounds back up.

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#6) On May 03, 2009 at 4:59 PM, BGriffinFlorida (27.15) wrote:

I suspect the effect on the price of gold is more pronounced from manipulation via derivatives than selling of actual bullion.  I haven't looked into gold but the evidence stongly points towards this in silver and I suspect the same is probably true with gold.

If the powers that be are comfortable with annoucing they are buying treasuries with money they don't have in order to keep rates low so that they can continue to borrow money they can't repay; then the prospect of selling gold they don't own to maintain an artifically high value on what would otherwise soon be a relatively worthless currency doesn't seem that out of character or far-fetched....

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#7) On May 03, 2009 at 5:06 PM, XMFSinchiruna (26.96) wrote:

BGriffinFlorida

Awesome comment... spot-on!  :)

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#8) On May 03, 2009 at 5:08 PM, XMFSinchiruna (26.96) wrote:

P.S. I consider any dip below $800 incredibly unlikely, although the level of manipulation which I believe exists makes just about anything possible in the short term. What matters is the long term, and gold is ultimately going to remain above $1,000 for years.

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#9) On May 03, 2009 at 5:25 PM, kkotwani (99.57) wrote:

I dont agree Gold going above $1000....thats most pessimist view. Reality is stock market panic drove up Gold Prices irrationally. Stability in market will calm down Gold prices to below $700 anyway.

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#10) On May 03, 2009 at 8:22 PM, binve (< 20) wrote:

$700 gold (if it actually gets back down to that level, which I think is highly unlikely) would be a gift. I will be buying as much as I can afford at that price.

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#11) On May 03, 2009 at 8:44 PM, OctoStalin (37.19) wrote:

Gold is inherantly spectulative, it has little industrial use to justify it's price. It may or may not do well, but your still gambling.

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#12) On May 03, 2009 at 10:17 PM, ChrisGraley (29.66) wrote:

1) The best thing the US could do for it's country would be to make a cash offer for all the gold the IMF has. (and to Rodgers for all the gold that he has for that matter)

2) For anyone that says gold is speculative, that statement is only true in the short term. Anyone willing to wait will always make a profit in gold. (We are talking about Warren Buffet type waits though.)

3) I'm glad I've been buying Silver for a while now.

4) I too will buy as much $700 gold as I can afford, and I'll bet the hedge fund managers will too.

 

 

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#13) On May 03, 2009 at 11:32 PM, russiangambit (29.32) wrote:

> If the powers that be are comfortable with annoucing they are buying treasuries with money they don't have in order to keep rates low so that they can continue to borrow money they can't repay;

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Great comment. It just goes to show how far down the rabbit hole we are .

What makes me really angry, though, is that governments think nothing about debasing peoples savings in order to stimulate the economy. FED kept interest rates super low to force people to consume because it didn't make sense to save at 1-2% interest.  Now they are full steam ahead into inflation to save debtors while savings erode even further. So, it makes no sense to do the right thing - to save, it makes sense to load up on debt. And then the politicans have the nerve to talk about how it is peoples fault that they have too much debt. They were pushed with both hands into this debt.

The more I learn about how the US is being run, the more similarities I see with the former USSR, - corruption, propaganda, lies, cover up, forced optimism, all the while the government is stealing money from the people through manipulation of the money supply. These are all hallmarks of the country that is no longer prosperous and is still trying to hold on to its superpower status.

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#14) On May 08, 2009 at 3:14 PM, OleDrippy (35.65) wrote:

#13) russiangambit

You continue to impress me with your logic. The government is effectively holding a gun to our heads to buy, buy, buy!!

I, for one, agree.. I hope gold hits $700 so I can scoop some up.

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