"There has been a proposal to sell the other 12.5%, but it has not yet been ratified by the IMF. The IMF has made a commitment that if such a sale proceeds, it will be done in such a way as to cause minimal disruption to gold markets, by coordinating the sales within current and future central bank gold agreements."
I note the committment made by the IMF to not disrupt gold markets and coordinate sales within current and future markets.
MY view is that the sale of the 12.5% IMF gold is one of the last options for JP Morgan etc to cover their massive short positions. Assuming this is one of the motives for selling IMF gold , if not the major motive, then watch what happens! IMO the price of gold will:
1) Form a VERY solid base at the price where short positions were covedred (somewhere in the US$900) and 2) Show a very bullish sign to the market that GOLD is going higher, alot higher.
Why is 2) a likely scenario? Because the POG has been held down by these short positions for a long time. Wipe these out and its clear paddocks ahead. Watch the longs pile in and watch the bullion banks let it happen as they can only suppress the natural tide for so long!
I'm bullish gold over the long term as it is the only true form of currency and trade (along with silver and a few other PMs). Paper, it burns well (or melts)
