enviro111

Why I'm Re-Establishing My Gold Position

The IMF isn't going to dump its gold on the market. Here are three good reasons why.

1. Gold prices are relatively high right now and politicians control the IMF. When have politicians every made a bright move when it came to trading assets? Answer: Almost NEVER. Witness the Idiot Gordon Brown - sells England's gold - an asset it has held for centuries at the lowest real prices in history. If the IMF does sell its gold, it will be a signal to buy, buy, buy.

2. One big factor that protects the US dollar is the USA's huge gold holdings. The IMF gold is actually a US holding to some extent (owns a partial interest in it). At the end of the day, the USA must be able to protect its dollar. Gold is last defense. It is unlikely they will let it go.

3. The IMF tried gold sales in the 1970's and it didn't keep the price down or inflation in check. It won't work this time either. Politicans are dummies, but not all of them are complete fools. They can easily check up on the effectiveness of past gold sales and see they didn't work.

4. Any IMF gold sale will be in name only. The gold will never leave the vault. It will just have a new owner's name attached to it.

5. A threat of gold sales always seems to spook speculators and cools off a runaway market. If the IMF sales actually occur, they will lose this valuable market manipulation tool.

6. A sale of IMF gold presumes that they actually hold the gold in the first place. Most likely they do have it, but if they don't, the emperor really has no clothes.