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Thanks Awgee.

As you know, I have been watching the price of gold to see if it presents a trading opportunity. Though it isn't a $92 billion sale, any significant sale could provide downward pressure similar to when various central banks dumped gold around 2000.

With the news being public, it will be price in before I can act. But it may present other opportunities after market forces do their work.
 
Hmmm, interesting read. I wonder if it's some kind of thing where they want gold to not get too out of hand with a crazy price increase because that would be too unbalenced and cause even more apprehension. Either way, thanks Awgee for providing that, I wonder how much that will affect the price. . .
 
An alternative to a bank issued CD is the corporate bond of the bank, for amount over the FDIC limit. You almost always get more yield for taking the same credit risk. The only thing to watch out for, is to make sure your broker/dealer didn't mark-up the bonds too much before they sell it to you.
 
On the subject of the IMF's pending gold sale: If you don't mind reading something written by Jim Sinclair, a notorious gold bug, below is taken from his site www.jsmineset.com . One could easily disagree with some of his views, but he dose provide some good information.

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.

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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
 
Well, so far it seems that Jimmy is correct. The IMF announcement is having no noticeable effect on the price of gold, either in the Asian markets last night, the London markets, and now the Nymex.
 
The rumor of some OPEC members want to reprice oil in Euro may have a role, too. If oil can go from US dollar priced to Euro priced, it sure can go from Euro priced to gold priced. hehe, I know it's a stretch, but it has happened before during global chaos (war) and just might happen again. Personally, I would never wish that.
 
There was a long oil analysis which I got to via a poster on Calculated risk, showing aerials of an oil patch in Saudi Arabia. Can't say that I understood more than 2/3rds of it and it had a lot of ifs and buts, but the bottom line is that we are at peak oil right now. I must say, I don't see why one declining field, even if it was a huge one means that we are at peak oil. But I do think that there is some urgency in getting something else in place. Which would mean how oil is priced is sorta irrelevant if there's going to be less of it all the time.
 
lawyerliz,

I think how oil is priced has symbolic meaning in which currency is considered "the" reserve currency of the world. The means of exchange which everyone on earth has faith in.

I really miss Calculated Risk. Unfortunately for me right now, I am in a part of the world where the Internet is monitored, and CR is one of those access denied sites.

On the issue oil, it may or may not be at its production peak. However, It is a given that fossil fuel will be completely replaced sooner or later. High economic cost will force innovation, and make it sooner.

I once attended an investors conference where various start-up companies were presenting. Some of the stuff presented sounded like voodoo magic. One little company was claiming to be close to utilizing some sort of microbe that some how eats junk and produce fuel. Of course there were the good ole nanotech based fuel cell, organic alternative fuel, solar, etc.. These presentations were standing room only, and you would not believe how many VC funds were salivating all over themselves and read to throw money at these idea. I don't know which, if any one of those will work or when. I do know lots of brain power and capital is working on a solution.
 
Calculated Risk is verbotten? Why? Why?

Tanta is too snarky? Bad things must not be talked about? The country is owned by a bank?

I guess if they knew about IHB, they'd forbid it too.
 
My guess is that CR's content itself is fine. The sites with the "perceived" problems are those political oriented sites which share the same .blogspot.com address.
 
I must say, I don't see why one declining field, even if it was a huge one means that we are at peak oil.

It's because Ghawar is the biggest wild card... Saudi Aramco is a major oil producer for which in situ reserves data is highly suspect. Quite a few of the rest of the world's major fields are in confirmed decline.

This is why I'm a little afraid for our future.
 
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