PRECIOUS METAL PRODUCERS

[NYBob]

What about imf....polo-ticz super red -
owg bureaucracy bolshevikz -
the Freedom and Liberty destroyers -

Sunday, February 10, 2008

In The News
Author: Jim Sinclair


The following is the history of the IMF and their gold shares.

It is important to note that their sales all have taken place
at times when major bull markets were either just beginning
or, as in 1976-1980, at the start of the major parabolic
move to then all time highs.

Now you know why I said our friends from 2002 Chung Phat
and Dr, No are high-fiving at the news that the biggest
dopes in gold are about to prove their status beyond
any doubt once again.

How and when the IMF used gold:

Outflows of gold from the IMF's holdings occurred under
the original Articles of Agreement through sales of gold
for currency, and via payments of remuneration and interest.
Since the Second Amendment of the Articles of Agreement,
outflows of gold can only occur through outright sales.
Key gold transactions included:

* Sales for replenishment (1957–70).
The IMF sold gold on several occasions during this period
to replenish its holdings of currencies.

* South African gold (1970–71).
The IMF sold gold to members in amounts roughly
corresponding to those purchased in these years from
South Africa.

* Investment in U.S. government securities (1956–72).
In order to generate income to offset operational deficits,
some IMF gold was sold to the United States and the
proceeds invested in U.S. government securities.
Subsequently, a significant buildup of IMF reserves
prompted the IMF to reacquire this gold from
the U.S. government.

* Auctions and " restitution" sales (1976–80).
The IMF sold approximately one third (50 million ounces)
of its then-existing gold holdings following an agreement
by its members to reduce the role of gold in the
international monetary system.
Half of this amount was sold in restitution to members at
the then-official price of SDR 35 per ounce;
the other half was auctioned to the market to finance
the Trust Fund, which supported concessional lending by
the IMF to low-income countries.

* Off-market transactions in gold (1999–2000).
In December 1999, the Executive Board authorized
off-market transactions in gold of up to 14 million ounces
to help finance IMF participation in the Heavily Indebted
Poor Countries (HIPC) Initiative.
Between December 1999 and April 2000, separate but
closely linked transactions involving a total of
12.9 million ounces of gold were carried out between
the IMF and two members (Brazil and Mexico) that had
financial obligations falling due to the IMF.
In the first step, the IMF sold gold to the member at
the prevailing market price and the profits were placed
in a special account invested for the benefit of the
HIPC Initiative.
In the second step, the IMF immediately accepted back,
at the same market price, the same amount of gold from
the member in settlement of that member's financial
obligations.
The net effect of these transactions was to leave the
balance of the IMF's holdings of physical gold unchanged.

More…
http://www.imf.org/external/index.htm

Should they sell in April of 2008 then gold is going to
the next Angel above $1650.

That is the only implication IMF sales have to the price
of gold.
It has been the most powerfully bullish event every time
they have done it, and will be again.

If any newcomer to gold sees the IMF news as a reason to
sell gold these newcomers are as DOPEY as the IMF has
proved to be every time, time and time again.

Respectfully,
Jim

Got Gold Safety..dd....
http://www.goldcorp.com

God Bless America -