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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (125486)	11/24/2009 11:33:41 AM
From: Wharf Rat	Respond to of 542233

Russia, China, Brazil queue up to buy IMF gold 2009-11-10 13:25:00 By Kishori Krishnan It is a trend that is catching on. First China bought gold from the International Monetary Fund, then it was the turn of India. Now, Sri Lanka has jumped onto the bandwagon. Countries are buying gold like there is no tomorrow. Now, which country should be on the queue to buy the remaining 203 tonnes of gold from IMF? Russia, China and Brazil are also said to be lining up to buy the rest of the IMF gold for sale, according to Moore from the TheBullionDesk.com. Historically, nations do not tend to buy massive amounts of gold when it is at or near all time highs. Taiwan is also a major holder of gold. If these emerging nations decide to make gold an important piece of their foreign exchange reserves, as is the case with the developed world, then the gold price could make new highs that would surprise even the most bullish analysts, traders maintain. Does this mean the gold price is underwritten for some time to come? Do the governments of these countries expect the US dollar to weaken further? And if so, which way is gold headed? Predictions on how high gold can go vary; at the bullish end of the scale, François Mouté, Europe’s top US equity manager, believes it will hit $1,600. Chris Mayer, who has been way ahead of the curve throughout the gold bull market of the last few years, has guided his subscribers to many large gains in the gold mining sector. “Sure, gold may be a little overbought over the short term,” Chris admits, “but we’re still in the middle of a great big bull market that is not even close to exhausting itself.” All bull? Could this point to something else altogether? Something that is missing completely from most analysts radar? Over the past few years, a confluence of factors has aligned to create a bullish environment for the gold price. Negative real interest rates, poor rates of return on alternative asset classes, unprecedented government stimulus, rising sovereign deficits and debt loads, and quantitative easing have all combined to drive investors across the globe to seek a safe haven in gold-related investments. Incidentally, November is earmarked as a potential point for gold to spike in dollar terms, driven by a flood of money moving out of hedge funds. Point to note though: Developing economies need to diversify their reserves. Buying gold enables them to have a bigger say at IMF and other such organizations. It puts more weight behind their words. Isn’t the recent move of Asian countries buying gold a mere geo-political move rather than desirability of gold? Is it time to cash out on gold? commodityonline.com == India Buys IMF Gold to Boost Reserves as Dollar Drops By Thomas Kutty Abraham and Kim Kyoungwha Nov. 3 (Bloomberg) -- India, the world’s biggest gold consumer, bought 200 metric tons from the International Monetary Fund for $6.7 billion as central banks show increased interest in diversifying their holdings to protect against a slumping dollar. The transaction, equivalent to 8 percent of world annual mine production, was the IMF’s first such sale in nine years and propels India to the ninth-biggest government owner globally, according to figures from London-based research company GFMS Ltd. The country previously held 358 tons, the data show. The news was a “surprise because everybody was talking about China being the buyer,” said James Moore, an analyst at TheBullionDesk.com. bloomberg.com