The Announcement of the I.M.F. Sale of 191.3 tonnes of Gold - What does it really mean?

By: Julian D. W. Phillips | Sat, Feb 20, 2010
Print Email

This is a snippet from the Gold Forecaster. The newsletter that covers all pertinent factors affecting the gold price [with a 95% accuracy rate].-

When India announced its purchase of 200 tonnes, it added a statement that it may buy more of the I.M.F. gold. This implied that it was limited by the I.M.F to 200 tonnes. But the I.M.F. never said that. Rather it said it would announce the sale of any other portion of their gold to the public. It has been several months since another sale has taken place. Now with this announcement, we are given the impression that central banks have not come forward to buy and are not buyers. Talk about 'spin'!

China for sure would not buy if an announcement were to be made. It would rather buy once the gold were sold in the open market, for it could buy through its chosen bullion bank or bullion banks and do so, under the radar. In fairness to the I.M.F. we have to say that they have said they are open to central banks buying direct from them still, and will announce such sales. But you must realize that any further sales through the 'open' market will be done anonymously. This levels the playing field. However, all we will now hear is the completion of such sales. If the I.M.F. decides to sell 4 tonnes a week, we will hear about it through the E.C.B. website in tonnage terms but with no further details. Will we hear of a 100 tonne sale done this way? Unlikely, but possible!

The market first reacted by fearing a dumping of this amount of gold, but once it gathered itself together, realized that it could as well be bullish for the gold price. After all 191 tonnes is an amount that the gold market does not see often, so a big buyer in the wings, finding that for one price can get a good lump might well come and bid for it. Will the I.M.F. offer the amount to the market or drip feed it? No one knows. Will they say to the market there is 191.3 tonnes on offer, we don't know. They can now play the game as they choose. If they want to sell the gold quickly, it is incumbent upon them to accept a bid for the entire amount, but rarely is life so straightforward, these days. The waters are now muddied!

The reality is that there is the demand for such amounts in one sale. But the real question is, "do the I.M.F. want to sell it in one go?" We now have to wait and see.

The impact on the gold price, whichever way it goes is clear.

Impact on the gold price.
Subscribers only

2010 gold prices forecast.
For Subscribers only - We are in the process of forecasting prices in 2010 in Gold - Silver - the $ - the € - the Global Economic tensions developing - The Oil Price - COMEX - Long -- Term Gold Investors - Chinese retail demand - Indian retail demand - European retail and Institutional demand - U.S. retail demand.<

Gold Forecaster regularly covers all fundamental and Technical aspects of the gold price in the weekly newsletter. To subscribe, please visit



Julian  D. W. Phillips

Author: Julian D. W. Phillips

Julian D. W. Phillips
Gold Forecaster

Julian D. W. Phillips

"Global Watch: The Gold Forecaster" covers the global gold market. It specializes in Central Bank Sales and details, the Indian Bullion market [supported by a leading Indian Bullion professional], the South African markets [+ Gold shares shares] plus the currencies of gold producers [ Euro, U.S. $, Yen, C$, A$, and the South African Rand]. Its aim is to synthesise all the influential gold price factors across the globe, so as to truly understand the global reasons behind the gold price.

Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Gold-Authentic Money / Julian D. W. Phillips, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold-Authentic Money / Julian D. W. Phillips make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold-Authentic Money / Julian D. W. Phillips only and are subject to change without notice.

Gold-Authentic Money / Julian D. W. Phillips assume no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit which you may incur as a result of the use and existence of the information provided within this Report.

You should be aware that the Internet is not a completely reliable transmission medium. Neither Gold-Authentic Money / Julian D.W. Phillips nor any of our associates accept any liability for any loss or damage, including without limitation loss of profit, which may arise directly or indirectly from your inability to access the website for any reason or for any delay in or failure of the transmission or the receipt of any instructions or notification sent through this website. The content of this website is the property of Gold-Authentic Money or its licensors and is protected by copyright and other intellectual property laws. You agree not to reproduce, re-transmit or distribute the contents herein.

Copyright © 2003-2016 Julian D. W. Phillips

All Images, XHTML Renderings, and Source Code Copyright ©