Post by jeffolie on Nov 3, 2009 12:33:18 GMT -6
$1085 gold via India buy
What happens when individuals start to buy gold in large amounts? That is not happening now. But, investors are well known for jumping on the bandwagon.
I consider India's purchase part of the larger shift in world economic power. India's purchase is not moving gold into 'weaker hands' that would be traders and speculators. For a long time now the European central banks have been selling gold. Perhaps they will stop selling.
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India’s central bank bought 200 metric tons of the metal from the International Monetary Fund, heightening speculation about more official purchases.
“It’s positive in many ways,” said James Moore, an analyst at TheBullionDesk.com in London. “It suggests central banks, rather than being net sellers, are now looking at becoming net buyers. It’s a surprise because everybody was talking about China being the buyer.”
The Indian transaction is “the biggest single central-bank purchase that we know about for at least 30 years in such a short period,” said Timothy Green, author of “The Ages of Gold.” “The only comparable event was the U.S.’s steady purchases in the 1930s and 1940s.”
India’s purchase, carried out from Oct. 19 to Oct. 30, buoyed gold as industrial metals slumped on concern that governments will remove economic-stimulus measures, crimping demand for raw materials. Copper and lead fell as much as 2.8 percent on the London Metal Exchange.
Ninth Place
India held 350 tons of gold at the end of 2008, making it the 12th-largest government owner, according to the GFMS Ltd. 2009 Gold Survey. The extra 200 tons propels the country past Russia into ninth place, according to GFMS figures. India is the largest buyer of gold for jewelry and investment.
“You usually associate Indian consumers buying gold more than you do the central bank in India,” said Mario Innecco, a broker at MF Global Ltd. in London.
The IMF’s executive board on Sept. 18 approved sales of 403.3 tons, pledging to avoid disrupting the market. The board last year backed the sale, about an eighth of the organization’s total stockpile, as part of a plan to shore up its finances. China increased its gold reserves by 76 percent since 2003 to 1,054 tons, the official Xinhua News reported in April.
Chinese Interest?
“This is positive for the gold market,” said David Barclay, a commodity strategist with Standard Chartered Bank in Hong Kong. “Bilateral sales which avoid the open spot market will avoid adding to marginal physical supply.”
China, Russia and Brazil may be interested in the rest of the IMF gold for sale, TheBullionDesk.com’s Moore said.
www.bloomberg.com/apps/news?pid=20601081&sid=aEMLngKDH5ns
What happens when individuals start to buy gold in large amounts? That is not happening now. But, investors are well known for jumping on the bandwagon.
I consider India's purchase part of the larger shift in world economic power. India's purchase is not moving gold into 'weaker hands' that would be traders and speculators. For a long time now the European central banks have been selling gold. Perhaps they will stop selling.
========================================================
India’s central bank bought 200 metric tons of the metal from the International Monetary Fund, heightening speculation about more official purchases.
“It’s positive in many ways,” said James Moore, an analyst at TheBullionDesk.com in London. “It suggests central banks, rather than being net sellers, are now looking at becoming net buyers. It’s a surprise because everybody was talking about China being the buyer.”
The Indian transaction is “the biggest single central-bank purchase that we know about for at least 30 years in such a short period,” said Timothy Green, author of “The Ages of Gold.” “The only comparable event was the U.S.’s steady purchases in the 1930s and 1940s.”
India’s purchase, carried out from Oct. 19 to Oct. 30, buoyed gold as industrial metals slumped on concern that governments will remove economic-stimulus measures, crimping demand for raw materials. Copper and lead fell as much as 2.8 percent on the London Metal Exchange.
Ninth Place
India held 350 tons of gold at the end of 2008, making it the 12th-largest government owner, according to the GFMS Ltd. 2009 Gold Survey. The extra 200 tons propels the country past Russia into ninth place, according to GFMS figures. India is the largest buyer of gold for jewelry and investment.
“You usually associate Indian consumers buying gold more than you do the central bank in India,” said Mario Innecco, a broker at MF Global Ltd. in London.
The IMF’s executive board on Sept. 18 approved sales of 403.3 tons, pledging to avoid disrupting the market. The board last year backed the sale, about an eighth of the organization’s total stockpile, as part of a plan to shore up its finances. China increased its gold reserves by 76 percent since 2003 to 1,054 tons, the official Xinhua News reported in April.
Chinese Interest?
“This is positive for the gold market,” said David Barclay, a commodity strategist with Standard Chartered Bank in Hong Kong. “Bilateral sales which avoid the open spot market will avoid adding to marginal physical supply.”
China, Russia and Brazil may be interested in the rest of the IMF gold for sale, TheBullionDesk.com’s Moore said.
www.bloomberg.com/apps/news?pid=20601081&sid=aEMLngKDH5ns