Monday, May 10, 2010

IMF Getting Rid Of More Gold?

In a Seeking Alpha article, "Old Trader" raises the possibility that the IMF will have to sell more of its gold to meet its newfound commitment to Euroland. Although such a move would ostensibly depress the price, he demurs from that conclusion.

With good reason, too. IMF and central banks of "advanced" nations tend to have lousy timing when offloading gold. IMF sales tend to depress the price in the short term, but gold tends to recover once the new supply's been swallowed up.

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