The gold price
IMF decision 'won't affect gold prices' - 10 April 2008
The proposal made by the International Monetary Fund (IMF) to sell some of its gold reserves will not affect gold prices, it has been claimed.
An announcement was made on Monday (April 7th) that the IMF could make the sales in order to revitalize the economy; however, gold analysts have said that they are not worried.
"We certainly have plenty of investment demand that can absorb [IMF's gold] in the market. Also, of course, it's not clear that there will be any sales anyway as it requires US congressional approval," said HSBC New York metals analyst James Steel.
It is believed that, should the fund make the sales, it will increase the amount of gold held by private investors.
In addition, regulations are in place to ensure that gold is sold within agreed limits so as not to affect gold supplies.
According to the World Gold Council, around one-fifth of the world's mined gold is held as reserves by central banks.
Looking to Buy Gold today? For direct access to live Gold Market prices - and to save up to 80% compared with coin dealers' fees - click through to BullionVault now…
An announcement was made on Monday (April 7th) that the IMF could make the sales in order to revitalize the economy; however, gold analysts have said that they are not worried.
"We certainly have plenty of investment demand that can absorb [IMF's gold] in the market. Also, of course, it's not clear that there will be any sales anyway as it requires US congressional approval," said HSBC New York metals analyst James Steel.
It is believed that, should the fund make the sales, it will increase the amount of gold held by private investors.
In addition, regulations are in place to ensure that gold is sold within agreed limits so as not to affect gold supplies.
According to the World Gold Council, around one-fifth of the world's mined gold is held as reserves by central banks.
Looking to Buy Gold today? For direct access to live Gold Market prices - and to save up to 80% compared with coin dealers' fees - click through to BullionVault now…
Goldbug, 10 Apr '08
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