India open to buy more IMF gold:

Discussion in 'Economics' started by Debaser82, Nov 25, 2009.

  1. India is open to buying more gold from the International Monetary Fund following its purchase of 200 tonnes earlier this month, the Financial Chronicle newspaper said on Wednesday, helping to drive gold prices to an all-time high. But India's central bank governor, Duvvuri Subbarao, declined to comment on whether the bank would buy more gold from overseas, however.

    The paper said that subject to acceptable conditions, India's central bank could well buy the balance of the initial 403.3 tonnes, or one-eighth of the IMF's total gold holdings, that the Fund had planned to sell. The report, which helped push the price of gold to a new record above $1,178 an ounce, quoted an unnamed government official as saying the additional purchase would depend on successful pitching by the Reserve Bank of India, the country's central bank. "RBI is an independent body, and the government does not interfere in its affairs.

    It will get the gold if its bid is successful and at the price it has offered, the official said. Spot gold has jumped nearly 13 percent since the beginning of this month as investors flocked to the metal after India's central bank announced it had bought 200 tonnes of bullion from the IMF, in the first such sale by the Fund since 2000. Russia, Sri Lanka and Mauritius have followed suit. Although India is the world's biggest consumer of gold, primarily in the form of jewellery and investment among its billion-plus population, its central bank had given little sign of being a front-runner in the move to diversify into bullion. A second purchase would appear to lift India's share of gold holdings to an estimated 8 percent or so, much less than most of the developed world but four times China's share.

    Those dumbs Indians....:cool:
  2. Those dumbs Indians....

    i don't know about that.
  3. They are getting rid of dollars.
  4. i agree.


    those dumb idiots was a quote from the previous post. but i cut and paste it so it didn't show.
  5. India is setting an example for the world by dumping dollars.
  6. lets hope everyone else follows for their own sake.
  7. As I said in another thread, it would be just like India to do this at the USD bottom, or gold top.
  8. that assumes the dollar will recover and gold will fall.

    what i means is they are concerned enough to take that position.
  9. Really in the big scheme of things this is all just noise I believe.

    They could lose or win big on their IMF gold purchases but it wouldnt significantly change their solvency or anything like that, the amount of gold and dollars talked about here is just to small.

    I live in a country of 10 million people and we just recapitalised our banks for 5 times the amount all the gold the IMF is willing to sell this last month....

    So how exactly is a country of 1 billion people putting itself at risk by paying 10 billion USD for some gold.
  10. mahadiga


    Agree. They should invest in CRUDE Oil.
    #10     Nov 26, 2009