News article on gold (IMF's sales of gold reseves, if taken over...

News article on gold (IMF's sales of gold reseves, if taken over by China, it will be extremely bullish for Gold prices - highly likely to be bought over by China as they are shifting their treasury's reserve for "new trade surplus funds" into "GOLD" as they are already holding huge amount of US currency. So let's wait & see as the new future of Gold unfold) ::

GOLD picked up in Asian trade this morning, edging above $US1005/oz - and the word is that Beijing is suggesting it may put up its hand for the entire 403 tonnes of the yellow metal about to be put on sale by the International Monetary Fund.

And the IMF sale could start as early as next week.

Reports indicate that China is bargaining to get the gold at a cut rate – arguing that such a sale would mean that gold not coming on the market and so depressing the metal’s price. They may have a point.

At present gold prices, China would have to part with $US13 billion – chickenfeed, especially to a country that is clearly building a large reserve of gold as a hedge against currency devaluations that would see the value of its foreign reserves sliced and diced.

Reuters quoted China central bank officials saying that the country has official reserves of “only” 1054 tonnes and it should buy the IMF gold – but at a discount.

This hope that the 403 tonnes would be absorbed by Beijing clearly heartened traders in Asia today.


AoA