ABOUT IMF N O T selling Gold! (by R. Kirby / A. Douglas)

[silverman]

Source: www.hartgeld.com


Rob Kirby on Mike Bolser’s predictions…

I was reading Thom Calandra’s interview with Mike Bolser – speaking about the possibility of 2000 metric tonnes of gold coming out of Italy.

2000 MT of bullion at 770 per ounce is roughly 50 billion dollars worth of gold. The only way I could imagine Italy parting with the gold would be at a MUCH HIGHER price – like say, 1500 per ounce – or 100 BILLION DOLLARS.

Now, if you are of the mind of Robert Rubin [Secretary of Treasury – Clinton] you think like this:

It seems to me that the mindset at the Fed and Treasury might be best summed up by Robert Rubin as he reveals the motivation or drivers of crisis management in the interaction between himself, Lawrence Summers, the ESF [exchange stabilization fund], the IMF and presumably the Maestro at the Fed – during the Clinton administration. On pages 290 - 291 of his book, In An Uncertain World, referencing the Brazilian financial crisis of the late 1990s, Rubin outlines how very expensive "bad decisions" can buy time. Sometimes, he asserts, these bad decisions have a great deal of merit because they can,

"..Probably defer the impact of the collapse for six or eight months,
and that will more than justify the effort."

If Bolser is right, and physical comes out of the woodwork, ask yourself again WHY????

The Fed and Treasury have not been forthcoming about where all of the hundreds of billions in bail-out funds are being deployed????

This would not exactly be "out of character" for Italians. While they are a signatory to both Washington Agreements – yet have sold no bullion to date – They DID lend bullion to Long Term Capital – and got NOTHING for it.

Perhaps it’s payback time????

Adrian Douglas about this:

GATA circulated a dispatch citing Thom Calandra’s interview with Mike Bolser in which Bolser claims that his analysis techniques can predict that the IMF will sell 3000 t of gold on Dec 10! That seems to fit more into the realms of astrology and clairvoyance than data analysis.

I think that this is so far-fetched as to be bordering on the ridiculous and I hardly think it is worth my time to refute but as investors are very skittish these days I thought I would take the time to say why this will not happen.

First and foremost I doubt Bolser has spoken to the IMF. Chris Powell on the other hand has communicated with them and it appears that they don’t have any gold; it appears it is the same gold that is already counted by each country in their sovereign gold reserve http://www.gata.org/node/6242

Selling IMF gold requires congressional approval. That hasn’t been given.

If the Cartel was planning such a sale the traditional large shorts on TOCOM, and notably Goldman Sachs, would not have been desperately trying to get out of their short positions for the last 30 months. Below is a chart of the combined net short gold position of Mitsui, Mitsubishi, Sumitomo, Goldman Sachs, and STDJ on the TOCOM. You can see how their total net short position had been declining since 2006 but they really rushed for the exits since July. I don’t think they would give up the trade of a lifetime on the short side that Bolser is proposing…that would mean that Bolser is simply wrong.

The COT shows the Large Commercials hold the smallest next short position in years. I make the same point as in point 3 above. This would not be the case if Bolser’s assertion had any merit.

If the IMF were to sell gold the Chinese would be immediate buyers. They have publicly stated they want to increase gold reserves to 3000t. News of an immediate taker of any gold sale would drive prices up not down.

Publicly announced Central Bank gold sales are NEVER done on the open market. The transaction is done between traders of the inner circle which usually are to square the books for gold sales that have already taken place in the physical market so it is never EXTRA supply. It only has value for jawboning the market lower. Nobody can jawbone the current gold market $350/oz lower! The physical market is on fire, they can jawbone all they want. Show us the metal!

The WAG agreement quotas are not being filled showing a shortage of official gold. Any attempt to sell IMF gold (which is probably non-existent as it is double counted sovereign reserves) shows that the Cartel is out of ammo. Supply and demand deficits can not be met by idle threats. Real gold has to be sold.

In my opinion Bolser is in good company with Prechter because he also has been totally wrong on the gold market for the last 8 years.



I guess the above said makes sence and just watch the price of Gold today....

Greetings, silverman

[_N_]

I'm watching the price and I see it's gone up from 780 USD to over 800 USD... still waiting for the magic drop