IMF Sell 200 Tonnes Gold to India
Gold Investing June 16th, 2010
WASHINGTON – The International Monetary Fund (IMF) to sell more than 400 tons of gold reserves, in which half sold to India which is the country’s largest gold consumer in the world.
As quoted by AFP, Tuesday (3/11/2009), the announcement from the IMF to sell 200 tonnes of gold into India’s central bank valued at $ 6, 7 billion was made to increase the loan funds amid the global economic crisis.
Gold sales to India nearly half of the 403.3 tonnes of IMF gold sale, where the IMF itself has targeted to sell in future years when the gold price close to record high.
The IMF also said the parties, this transaction is in the process of completion. Where are involved daily sales gradually over a period of two weeks on 19-30 October. Each daily sales is determined based on prevailing market price on that day, according to the documents establishing the institution.
“I really welcome this transaction with the Indian central bank (Reserve Bank of India). This transaction is an important step to achieving the goals of selling IMF gold programs to help put a healthy financial funds for the long term and enable us to increase concessional loans that indispensable poor countries, “said IMF Managing Director Dominique Strauss-Kahn, said in a statement.
In addition, the IMF currently has a gold reserve of 3217 tons and is the official holder of the precious metal in the world’s third largest after the United States and Germany. India is the largest gold consumer, importing between 700-800 tons of metal per year, or 20 percent globally.
A senior IMF official said the IMF was lucky to sell 200 tons of gold to India, because the current price of gold approximately USD1.045 per ounce, compared to April 2008 sales of USD850 per ounce.
“Of course, this is only half of the sales are completed. So we are half way there again, I hope we’ll still be lucky,” he said.
In addition, gold prices had reached its highest price of USD1.070, 80 per ounce on October 14 because of the weakening dollar and precious metals making it less expensive for investors holding currencies than others. As a result, demand was increasing. The price of gold itself has increased more than 20 percent since the beginning of 2009.
A week before India’s central bank buying of gold, Indians spend nearly $ 2 billion to buy gold for the celebration of the Hindu religion. This increase compared to 2008. The gold has become the new investments amid global economic uncertainty, in which investors seek refuge.
Reportedly, the gold sales in India rose 5.7 percent to 56 tons from the previous year during the period 12-19 October. Months was considered the most profitable to buy gold in accordance with Indian tradition
