warren bevan speculates that the true purpose of imf gold sales is to transfer the entire sale amount to china as compensation for the depreciation of its us dollar holdings. that has the ring of truth to it.

China’s recent veiled threats towards the establishment have been taken to heart. As China announced increased gold reserves from 600 to 1,054 tonnes it was an obvious warning. Initially I thought it was a direct threat against the ocean of treasuries being issued, but I think I have a clearer answer now. China wants the IMF’s gold!

For years the IMF has “threatened” to sell their gold. The final approval had to come from the US since they have veto power. It finally came this past week. For the gold they will receive an insignificant amount of money in today’s terms of $13 billion in paper, sorry I mean bits, or computer digits or whatever you want to call them, which can literally be created in the blink of an eye. The 400 tons of gold being traded for this instant gratification would take a full two months of production from every gold mine in the world to produce. Producing gold is quite a lot more labor intensive and thus gold’s worth is, or should be, much greater.

It became clear to me this morning that the threats by China were threats that they’d better push through the sale of the IMF’s gold or else. Unless you’ve been living on the moon lately, and possibly even then, you’ve noticed the tantamount battle taking place in gold. It coincided with the Chinese announcing gold reserve increases twice and looking back it’s clear to me the threat was either sell me the gold, or I will take gold up and over $1,000 which would have brought in the momentum traders furthering the rally.

The establishment hasn’t wanted and on many days have restrained gold from moving towards it’s fair value. But recently they were losing the battle, and I surmise, succumbed in part by approving the IMF sale. A high gold price is not what they want and they will do everything in their power to slow the inevitable rise. Please see the facts which are all public record that GATA has amassed over the years for much more detailed information.

http://news.goldseek.com/GoldSeek/1245776400.php