John Nadler reports that china is recommending that the IMF sell all its gold it can loan money to help our poorer countries (and then cites another source which disputes this).

"India and China may press for the sale of the entire gold reserves of the International Monetary Fund (IMF) to raise money for the least developed ountries. The IMF holds 103.4 million ounces (3,217 tonnes) of gold that, if sold, can fetch about $100 billion. A draft paper exchanged between New Delhi and Beijing proposes that the gold be sold in bullion markets over a period of two to three years. The money thus raised must be used in tackling poverty in the poorest nations."

He thinks this is bearish for gold.

What faldada!

Gold is the only thing of value that the IMF has, thats why they would have to sell it to raise money. So what do you call the last asset you have that you can sell easily and readily? That would be your best store of value, GOLD.

Also, isn't it likely that China would love to have all that gold put up for sale so that they can dump their dollars for something of value? Nader even opens this possibility when he says that it is unlikely that the gold would be
available to retail, but bought instead by central banks directly from the IMF.

Interesting that Gold stocks have not fallen much considering gold is off by almost 15%. Normally stocks would fall double or 30%, instead they've kept their value in line with the metals... seems investors are now aware of the transient nature of these dips to the downside.

BK