IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

[Fiat Currency]

IMF Announces Sale of 2 Metric Tons of Gold to the Bank of Mauritius

The International Monetary Fund announced today the sale of 2 metric tons of gold to the Bank of Mauritius, the nation’s central bank. The sale was conducted on the basis of market prices prevailing on November 11, 2009 with proceeds equivalent to US$71.7 million (SDR 44.7 million). This transaction is part of the total sales of 403.3 metric tons approved by the Executive Board in September 2009 (see Press Release No. 09/310), and it adds to the 200 metric tons already sold to the Reserve Bank of India (see Press Release No. 09/381).

As previously announced (see Press Release No. 09/310), in accordance with the guiding principle of avoiding disruption of the gold market, the IMF’s Executive Board adopted modalities for the gold sales consistent with guidelines it had earlier established. In particular, the Fund is standing ready for an initial period to sell gold directly to central banks and other official holders that may be interested in such sales. Thereafter, on-market sales of any amounts remaining from the 403.3 tons would be conducted in a phased manner over time, following the approach adopted successfully by central banks participating in the Central Bank Gold Agreement.

As previously indicated, the Fund will inform markets before any on-market sales commence, and will report regularly to the public on progress with the gold sales.

Am I the only one concerned that the IMF is now quoting things in SDRs ??

[cobben]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

"Am I the only one concerned that the IMF is now quoting things in SDRs ?"

Fiat, shmiat, isn't it all the same?

Gold making new highs in SDRs:

http://fx.sauder.ubc.ca/plot.html


PACIFIC Exchange Rate Service

© 2009 by Prof. Werner Antweiler, University of British Columbia, Vancouver BC, Canada.
Permission is granted to reproduce the above image provided that the source and copyright are acknowledged.
Time period shown in diagram: 18/Nov/2007 - 17/Nov/2009

[Fiat Currency]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

"Fiat, shmiat, isn't it all the same?

Gold making new highs in SDRs:

Yes - of course. I hope everybody sold their SDRs in 1999 ...

SDR-Gold.png

... but are you taking odds that the IMF SDR will become the "New World's Reserve Currency" ? :eek:

[cjppjc]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

The Bank of Mauritius? Am I the only one who never heard of this country?

[Jay]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

The Bank of Mauritius? Am I the only one who never heard of this country?

They used to do a brisk trade in Dodos.

[Spartacus]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

I suppose Germany & France & UK & the US canNOT buy that Gold for fear of giving Gold legitimacy,

buyt why Mauritius?

Were there any special fault cracks in the financial world's landscape happening EXACTLY THERE that the Gold is going to fill,

or will the gold find its way "elsewhere" (where it's REALLY needed), after Mauritius's officials get a good "thank you" payment?

The Bank of Mauritius? Am I the only one who never heard of this country?

[Jay]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

I suppose Germany & France & UK & the US canNOT buy that Gold for fear of giving Gold legitimacy,

buyt why Mauritius?

Were there any special fault cracks in the financial world's landscape happening EXACTLY THERE that the Gold is going to fill,

or will the gold find its way "elsewhere" (where it's REALLY needed), after Mauritius's officials get a good "thank you" payment?

Look at the right hand, not the one under the table!

[Slimprofits]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

The Bank of Mauritius? Am I the only one who never heard of this country?

Sri Lanka bought 5 tons


http://www.itulip.com/forums/showthread.php?t=12888

[Crazyfingers]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

This all seems strange to me. As I asked on the last post about the IMF selling India gold. Always heard when the IMF threatens to sale their gold it is bullish for gold. But now they ARE selling their gold. What does it all mean? I thought the IMF were priming to be the new Federal Reserve, wise ones, for the world. Looks kinda like a dumb move to me, if gold is going to the moon. Or is it? Could countries like Sri Lanka and India be kind of like a money sink, reducing the amount of dollars sloshing around, in exchange for some gold nuggets?

I read an article awhile back about this happening to the Arab states 30 years ago, but cant find the article. Basically they were persuaded to by gold at the top.

Interesting times.

[fliped42]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

This all seems strange to me. As I asked on the last post about the IMF selling India gold. Always heard when the IMF threatens to sale their gold it is bullish for gold. But now they ARE selling their gold. What does it all mean? I thought the IMF were priming to be the new Federal Reserve, wise ones, for the world. Looks kinda like a dumb move to me, if gold is going to the moon. Or is it? Could countries like Sri Lanka and India be kind of like a money sink, reducing the amount of dollars sloshing around, in exchange for some gold nuggets?

I read an article awhile back about this happening to the Arab states 30 years ago, but cant find the article. Basically they were persuaded to by gold at the top.

Interesting times.

Actually it is an interesting way to take currency out of the system. If your thesis is correct isn't that dollar bullish as the CB's would be soaking up the dollar liquidity. But the real question is where do the dollars go. Are they paying down debt with them or are they re-lending and putting the money back in the system.

[Crazyfingers]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

In multiplayer online gaming worlds, its called a money sink. The money is just out of the game. Poof. But the game developers keep pumping (median of exchange) into the system through new jobs(killing critters and quests).

I see central bankers much like game developers. If game developers do not manage the game correctly, people quit and go play other online worlds=No more monthly subscriptions for the game developers. Central bankers or whatever you want to call the folks in charge are in the same boat. Except instead of quiting the game, the people revolt. And both the game developers and central banks could care less about balancing the budget. What fun would an Online World be collecting coins from (government jobs) killing dragons and doing quest, if the game developers(the government) sucked all the coins back out every week-In the name of paying down the deficit!

Even if EJ himself was hired to run the economy of World of Warcraft II online, he would always run a deficit, occasionaly applying money sinks when the median of exchange was threatened.

Sorry for the rambling, I always wanted to write a paper about the similarites between Online Worlds and their economies and the Real World. I once was involved in an online world called HORIZONS in the early 2000's After I quit, I swore it was ran by the government to test all sort of economic theory. Was probably a nutty idea, but in these times, who knows!

[cobben]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

"are you taking odds that the IMF SDR will become the "New World's Reserve Currency" ? :eek:"

I'm not a bookie, so I don't take odds . . .

but I see no way that the SDR in it's current form could become a reserve currency, as it's primarily made up of the biggest loser currencies - and the most serious deficiency is that there's no SEK in it at all! :p

[dbarberic]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

I suppose Germany & France & UK & the US canNOT buy that Gold for fear of giving Gold legitimacy,

buyt why Mauritius?

Were there any special fault cracks in the financial world's landscape happening EXACTLY THERE that the Gold is going to fill,

or will the gold find its way "elsewhere" (where it's REALLY needed), after Mauritius's officials get a good "thank you" payment?

I think we are on the same page.

What the hell is as a unknown island buying 2 metric tons of gold doing? I think they are a proxy for buyers who do not want their name known.

[thisguy]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

Maybe a good deal haha

Marc Faber saying in this video gold will never see below $1000 again

Also as long as Ben Bernanke is fed chief, gold will be a good investment

Go Mauritius

http://is.gd/4XWoA

[skidder]

Re: IMF - Sells 2 Metric Tons of Gold to the Bank of Mauritius

There is this little bit of curiosity/co-incidence that was posted on Lemetropole last night

"
Hi Bill:
Something curious going on here:

Besides the purchase by India of 200 tonnes of IMF Gold there have been two other recent announcements of Central Bank Gold purchases. Sri Lanka purchased 5.3 tonnes of Gold. Here is part of the announcement:

"Weerasinghe did not disclose from which sources the bank was buying the gold or at what prices. He gave no breakdown of how much of the country's more than $5 billion in foreign reserves were held in gold. A senior source close to the central bank said the gold purchases were part of moves to smooth periods of dollar volatility and the amount bought was in the neighbourhood of 5.3 tonnes as of September."
What's curious is that according to the IMF the Sri Lankan Central Bank bullion reserves BEFORE the announcement were listed as 5.3 tonnes!
Then we have the purchase by Mauritius of two tonnes of IMF Gold announced today. Once again according to the IMF the Mauritius Central Bank had bullion reserves BEFORE this purchase of 1.9 tonnes!
So two Central Banks purchase IMF Gold in amounts that effectively double their previous holdings. Or is it possible these "purchases" replace Gold that was leased out by them and cannot now be returned? We'll have to watch the next IMF report to see how their Reserves are listed.
Cheers from Auckland,
Ed Wener
Love it Ed. What are the odds the amount of central bank gold sold to these two countries would be the exact amount, and so close to the exact amount, of their existing gold reserves?"