The Gold Report
No sooner had most Western pundits come to the conclusion that China was unlikely to buy the IMF's remaining 191.3 tons of gold for sale, with reports in China Daily lending support to this interpretation of Chinese buying policy, than the Russians in the form of Pravda published an article saying that China was in talks with the IMF to relieve that august body of this bullion, which is obviously burning a hole in its pockets.
The Pravda report quoted the FinMarket news agency as saying that Chinese officials have confirmed the nation will buy the IMF gold—this immediately follows reports from other Chinese officials that it won't buy the IMF gold. Naturally the gold price has been bouncing up and down like a yoyo. Either the Chinese are having a huge laugh at the expense of gullible Western—and other Asian—investors, or there are groups of gold bulls and bears out there busy placing stories in the media to suit their particular investment policies.
Indeed the supposed source of the China-will-buy-IMF-gold story says, according to a Reuters report, that she didn't actually have any direct official confirmation of the story relying on Chinese news reports - which may well have just picked up on earlier Western speculation.
Naturally the IMF refuses to confirm, or deny, any of these stories—it's not in the business, officially at least, in promoting any specific purchasing agenda.
So what's the answer? Probably sit tight on your gold—the downside looks to be limited by investors coming in when the price drops below $1,100. If one of the rumored major buyers does come in and snaffles the lot, then there will be a good kicker in the price. If they don't, with the limited downside gold may well help you retain your wealth.
Notable Quotes
"ROG's Burkina Faso deposit will be easy to mine, inexpensive to build and very profitable." (5/20/13) Roxgold Inc. - The Gold Report Interview with Brent Cook More >
"AMM is the kind of company an investor wants to be involved with." (5/20/13) Almaden Minerals Ltd. - The Gold Report Interview with Brent Cook More >
"ATY had some very good drill results and its VMS project is certainly economic." (5/20/13) Atico Mining Corp. - The Gold Report Interview with Brent Cook More >
"I like LYD because of its simple, low-capex project." (5/20/13) Lydian International Ltd. - The Gold Report Interview with Brent Cook More >
"TMM released record production of 28.3 Koz Au for the quarter." (5/8/13) Timmins Gold Corp. - Joseph Fazzini, Dundee Capital Markets More >
China's Gold Dance
Source: Mineweb, Lawrence Williams (2/25/10)
"If China or India don't cough up does it really matter?"
More Experts
"Drill results from BAR's Martinière indicate a growing, fertile gold system." (5/13/13) Balmoral Resources Ltd. - Eric Lemieux, Laurentian Bank Securities More >
"SAS had a strong cash position of $32.1M at the end of Q1/13." (5/13/13) St Andrew Goldfields Ltd. - Eric Winmill, Casimir Capital More >
"GRG has an exciting high-grade silver discovery and just released an NI-43-101-compliant resource estimate with 105 Moz Ag eq." (5/17/13) Golden Arrow Resources Corp. - The Gold Report Interview with Thibaut Lepouttre More >
"THO's Escobal remains on budget and on schedule; its progress is encouraging." (5/10/13) Tahoe Resources Inc. - Chris Thompson, Raymond James More >
"We reiterate our Outperform rating on P and it remains one of our top picks." (5/10/13) Primero Mining Corp. - Shawn Campbell, Macquarie Capital Markets More >