IMF To Sell Gold

February 12, 2009 Market Updates, Physical Gold, Politics No Comments

The conspiracy loonies are out on the plan for the IMF to sell gold. This plan for the IMF to sell gold will not halt gold’s move higher.

The DOW is currently down 182 at 7756, the NAS is down 22 at 1,507, the dollar is up, what a surprise, .72 (.93%) at 86.59 and gold is continuing it’s march, up $8.30 at $947.40. Gold has support at the old resistance level of $930 and resistance at $952. If gold breaches the $952 level, it should run to $982 which would then open the door for a shot at $1000.

It was just Tuesday evening that gold futures moved back above $900 before reacting strongly to the comments of the new Secretary of the Treasury, Timothy Geithner. “Follow me, I have the answer but I’ll give you the details later”, did not sit so well with the Dow and it fell close to 400 points while gold moved up and through $930. The House and the Senate quickly reconciled their bills under the mantra that it was so important that there wasn’t time to even read the reconciled bill before passing it. So what if two thirds of the tax cuts go to people who don’t pay taxes and don’t mention the complete nationalization of health care. Those people over 60 won’t mind dying to help keep costs under control, after all their 401Ks will be gone in the next year or so anyway, because our plan doesn’t fix the banking industry in the first place!

Enough ranting, no one is paying attention anyway. After the government has had control of the education system for some 60 plus years, it’s a wonder that anyone can read in this country. For those of you that still can, I came across this new version of the pledge of allegiance that is pretty apropos.

“I pledge allegiance to Goldman Sachs, and to the conspiracy for which it stands, one racket under Obama, Communist and indivisible, with slavery, debt, and poverty for all.“

Coming to a theater near you, soon! No author was attributed to the new pledge, but I know that if I wrote it I would certainly claim it.

gold coins and bars1 IMF To Sell Gold

IMF Gold Sale, Not To Worry!

On a more serious note, I would like to mention the IMF’s plan to sell 403 tons of gold that came out yesterday. Last year, at this same time, the IMF floated out a similar plan which did nothing to stop gold from moving up to a record high of $1033.90. Gold bullion did not start down until July, the beginning of the current “worse than the Great Depression” financial crisis that we are in now. Most of gold’s decline had to do with speculative funds bailing out of the commodities sector and investors selling to cover losses and margins in other sectors of the market.

I see no reason that this latest announcement will pressure gold because no timetable has been announced and the IMF has stated in the past that their sales would be done in small enough amounts so as not to upset the markets. The sale of $403 tons of gold in one day would be a blip in the market, but that amount spread over a year or more should not even be noticed.

There are bigger things on gold’s horizon than the IMF, namely the actions of the amateurs at the Fed and the Treasury Dept. The “stimulus” package will be the driver that sends gold through the $1000 mark. Keep your eye on the final signed bill, because it will most likely give us the near term direction in gold. If it is, as it currently seems, sell the rumor and buy the news, we may be in for another buying opportunity in gold and gold stocks. This market needs something to hold onto and until it gets it’s direction, it could go either way.

Till next time, good luck and good trading!