My appologies to the board if this was already posted...
This only contributed...
IMF Sells Gold to Central Bank of India
By Sandrine Rastello
Bloomberg News
Tuesday, November 3, 2009
WASHINGTON — The International Monetary Fund said it is selling200 metric tons of gold to the Reserve Bank of India for about $6.7billion, its first sale of the precious metal in nine years.
The sale accounts for almost half the 403.3 tons that theWashington-based lender in September agreed to sell as part of a planto shore up its finances and lend at reduced rates to low- incomecountries.
"This transaction is an important step toward achieving theobjectives of the IMF’s limited gold sales program, which are to helpput the fund’s finances on a sound long-term footing and enable us tostep up much-needed concession lending to the poorest countries," IMFManaging Director Dominique Strauss- Kahn said in an e-mailed statementyesterday.
The transaction, which involved daily sales from Oct. 19-30 atmarket prices, is in the process of being settled, the IMF said in thestatement. The average price in the transaction with India was about$1,045 an ounce, an IMF official said on a conference call withreporters.
The lender has said it is ready to sell directly to central banksand later make transactions on the open market if necessary. The IMFofficial declined to say whether other central banks have expressedinterest in purchases.
The 403.3 tons the IMF board agreed to sell amount to one- eighthof its stockpile. Gold prices reached a record of $1,072 an ounce onOct. 14 and have gained 45 percent from a year ago.
