GOLDBUGS AMEX Goldbugs Index (GOLD)

[al44]

As we all know the IMF gold sales have been approved and signed into law. The question is what might this do to the gold market? IMHO, it may have a slight negative effect short term, maybe just a slight dip, just based on the news and the actual start of the selling. I don't think any of it will even hit the market. Putting together all the news about China's dollar worries and their inclination to diversify, it's quite probable all that gold will end up in the vaults of the Chinese central bank. What a better way to rid the balance sheet of some dollars and not cause a major stir in the metals market. Long term, I can see no way that IMF gold sales will do any harm to the gold market. European central bank sales in the past several years have dumped far more gold into the market than anything the IMF has to sell and look what happenned to the price of gold. I would appreciate any opinions pro or con. Thanks and happy Father's day to all the proud papas out there.

............al