China To Purchase IMF's Gold

China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.

World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.

The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009. India, Mauritius and Sri Lanka purchased about 212 tons of the amount at the end of 2009. India purchased most – 200 tons.

China’s interest in international trade is connected with the development of the nation’s economy, as well as with the growing consumer demand in the country.

“Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market,” the agency reports.

Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said.

The IMF has received the profit of $7.2 billion from gold sales. A part of the funds is to be used for crediting poor countries.

Source : www.pravda.ru

I Should Have Bought GOLD

All should be moved by the following dramatic picture and eye-popping gold price charts. The first is an actual photo of currency traders in Sao Paulo, Brazil in early 1999.
The chart shows how the Brazilian currency (called the "real") price of gold soared nearly 80% in a two week period in January 1999. I believe the US dollar price rise of gold will be equally dramatic, violent and without notice sometime during the next 6-8 months.
Economic and monetary crisis overwhelmed Brazil - as it did a few years later to Argentina and twice in Venezuela...and is a 'preview' of what the US may well see during 2010
To use apropos Chinese cliché, "a picture is worth a 1,000 words"


--------BRAZIL JANUARY 1999
"Eu sabia que devia ter comprador ouro!"
"I KNEW I SHOULD HAVE BOUGHT GOLD"

This Brazilian picture will likely be replayed in a theater near you…in the not too distant future. ....around the globe in all countries.

--------VENEZUELA JANUARY 2002
Yo sabia que debia haber comprado el oro!
"I KNEW I SHOULD HAVE BOUGHT GOLD"

The price of gold denominated in Venezuelan Bolivars soared 800% in six years…that's +133% per year for 6 years.

--------ARGENTINA JANUARY 2002
Yo sabia que debia haber comprado el oro!
"I KNEW I SHOULD HAVE BOUGHT GOLD"

The price of gold denominated in Argentine Pesos soared 125% in less than TWO MONTHS.

--------VENEZUELA JANUARY 2010
Yo sabia que debia haber comprado el oro!
"I KNEW I SHOULD HAVE BOUGHT GOLD"

To be sure, the Venezuelan nightmare began 9 years ago. Since then the Bolivar value of gold has soared +1,240 percent, that's an average increase of +136% PER YEAR FOR NINE YEARS. See 9 year chart:

Consequently, one is either on-board...or left at the station with a bag full of fiat paper, wringing his hands and screaming his lungs out:
"I KNEW I SHOULD HAVE BOUGHT GOLD!"
"Yo sabia que debia haber comprado el oro!"
"Eu sabia que devia ter comprador ouro!"
However you want to say it, never leave home without some investment in precious metals. Your personal real wealth depends on it.
Unfortunately, by yearend some hapless investors who only listen to CNBC will be crying in their beer, mumbling, "I cudda, I wudda, I shudda..."

Einhorn Joins Billionaire Peers in Bets on Gold

Count David Einhorn, the head of Greenlight Capital, among the hedge fund stars betting big on gold.

The stake puts him in the company of luminaries like John Paulson and George Soros, who both reported large year-end stakes in gold-oriented equities.

Einhorn has also reportedly been seeing opportunities in the financial space, where he has joined real estate developer Stephen Ross and other investors in an entity that intends to bid on failing banks, according to Reuters.