Another mysterious IMF gold sale -- plugging the London leaks?
8:05p ET Tuesday, May 4, 2010
Dear Friend of GATA and Gold:
Another unexplained sale of gold by the International Monetary Fund turned up today in another Reuters story based on another statement from the World Gold Council.
This time the sale is said to have been 18.5 tonnes unloaded in March. Two weeks ago the WGC reported that the IMF had sold 5.6 tonnes in February. (See http://www.gata.org/node/8578.)
Once again the IMF apparently has issued no formal statement about the most recent sales, disclosure coming only because the WGC thumbed through the IMF's monthly International Financial Statistics report and mentioned it to a select reporter or two. (No press release about the sales seems to have been posted at the WGC's Internet site either.)
But then the IMF isn't talking much about its supposed gold lately, having refused last month to respond even cursorily to some pointed questions from Business Insider's Vince Veneziani (see http://www.gata.org/node/8583), questions that were similar to questions put to the IMF by GATA itself in April 2008 and evaded just as badly. (See http://www.gata.org/node/6242).
GATA knows of two investment houses that recently applied to the IMF to purchase some of its supposed gold and were refused, one of them being Sprott Asset Management in Toronto. (See http://www.gata.org/node/8511.) Since the money of those investment houses presumably is as good as anyone else's, since the IMF for years has been issuing dozens of statements about selling gold for every actual sale made, and since the IMF as recently as last November issued a detailed statement about its supposed sale of 200 tonnes to India (see http://www.gata.org/node/7971), the IMF's unusual silence about its two most recent sales invites suspicion and speculation about where the gold is going.
If it's not going to investment houses that want to buy it and if its destination cannot be disclosed lest the markets figure out what is happening, is the gold being used to plug holes in the increasingly leaky dike of Western central bank and bullion bank gold price suppression? Is the gold being rationed to members of the London Bullion Market Association, whose impossibly short positions in gold and silver were disclosed over the last six months in reports by GATA board member Adrian Douglas (see http://www.gata.org/node/7908, http://www.gata.org/node/7911, and http://www.gata.org/node/8388) and then candidly confirmed by CPM Group founder Jeffrey M. Christian at the March 25 hearing of the U.S. Commodity Futures Trading Commission (see http://www.gata.org/node/8478)?
It's too bad that the World Gold Council, which reportedly has an annual budget above $60 million, doesn't press these questions after thumbing through those subtle IMF reports. But then it's too bad that the World Gold Council exists mainly to ensure that there never is a world gold council.
Today's Reuters story is appended.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
IMF Sold 18.5 Tonnes of Gold in March vs 5.6 Tonnes in February
via Yahoo News
Tuesday, May 4, 2010
NEW YORK -- The International Monetary Fund sold 18.5 tonnes of gold in March under the second phase of its gold sales program, industry group World Gold Council said on Tuesday.
The IMF's sales, which totaled 5.6 tonnes in February, are taking place under the umbrella of the third Central Bank Gold Agreement, which began in September 2009. Signatories of the CBGA are largely euro zone central banks, the largest gold holder of which is Germany.
Natalie Dempster, WGC's director of government affairs, said IMF released the data in its monthly International Financial Statistics publication.
Total sales under the pact, which limits signatories' gold sales to 400 tonnes a year, were just 7.2 tonnes to April 20.
The IMF began its planned sales of 403.3 tonnes of gold last year. It sold 200 tonnes to India and smaller amounts to Sri Lanka and Mauritius last year.
The price of gold gained almost 6 percent in April, its biggest one-month rise since November, as the credit ratings downgrades of Greece, Spain, and Portugal, sparked a flight to safety into the metal.
Prophecy Resource Corp. Appoints Rob McEwen to Advisory Board
Prophecy Resource Corp. (TSX.V: PCY, OTC: PCYRF) is pleased to announce the appointment of Rob McEwen to the company's Advisory Board. McEwen is a leading Canadian mining industry entrepreneur. He is the chairman and CEO of U.S. Gold Corp. and Minera Andes Inc. McEwen was the founder and former chairman and CEO of Goldcorp Inc., whose Red Lake Mine in northwestern Ontario, Canada, is considered to be the richest gold mine in the world. During his tenure at Goldcorp, McEwen transformed the company from a collection of small companies into a mining powerhouse, growing its market capitalization from $50 million to approximately $8 billion.
For Prophecy Resource Corp.'s complete statement:
Support GATA by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
Anglo Far-East Bullion Co., the Original Private Bullion Custodian
For two decades Anglo Far-East Bullion co. has been providing select international clientele the highest degree of privacy, security, and access to buy, hold, and sell allocated gold and silver bars.
-- Allocated gold and silver bars: AFE will not only provide you with the individual bar numbers of the bullion bars you own, but you can also rest safely in the knowledge that each bar is sight-verified by a top Swiss auditor and annually checked off against AFE accounts to ensure that your metal is locked away safely.
-- Guaranteed market access and liquidity: AFE buys and sells directly with LBMA-certified metal refineries only. In bypassing the commodities market exchanges such as the Comex and bullion banks, AFE provides clients a means of access to the global physical precious metals markets that may not be available to others should systemic issues in the bullion markets arise.
-- Stand for delivery: If at any time you wish to take delivery of your metal, AFE will arrange to have bars shipped to you anywhere in the world.
-- Zero tolerance for leverage: AFE refuses to deal with "paper gold." We believe our clients want the metal itself so they may avoid the risks of the paper markets. AFE will not introduce such risk to its clients.
-- Metal vaulted outside the banking system: None of AFE's clients have to worry that their metal is exposed to encumbrances bearing on bullion banks and commodities markets. None of AFE's vaulting partners or other strategic providers are controlled or majority-owned by banks. This is by design, not by accident.
-- Access to the LBMA system of refineries, vaults, and security providers. This allows AFE clients to maintain London Good Delivery status of their metal, ensuring ease of sale or transfer, while being insulated from the "paper gold" market.
-- Total privacy: AFE accounts are managed as numbered accounts in the Swiss private banking tradition. At no time does identifying information such as name and address appear on any account statement or other account documents.
-- Geo-political diversification: In the words of the wise King Solomon, "Place a portion of seven and eight throughout the land, for you know not where evil may arise." Many of AFE's clients choose AFE specifically because their metal is safely vaulted outside the jurisdiction they reside in.
-- Iron-clad governance: By contract with AFE's vaulting provider, no access may be made to the vaults without the attendance of an agent of the vault as well as an agent of the third-party signatory trustee, in this case top Swiss auditor Grant Thornton. All metal going into and -- more importantly -- coming out of the vaults requires the approval of a third-party signatory trustee as well as a detailed, sight-verified report of each bar and serial number by the auditor.
For more information and a personal consultation with one of our private account liaisons, please contact us:
Anglo Far-East Bullion Co.
New Zealand: +64-9337-0715
United Kingdom: +44-208-819-3911
Hong Kong: +852-8124-1265