The IMF and Gold

The IMF or International Monetary Fund has been a serious obstacle in developing nations based on their poor track record. The IMF seems to be ‘stuck’ on obsolete solutions that do not work. During the 1997 – 98 Asian financial crisis that was largely attributed to hedge fund manager George Soros and his band of pirates, the IMFs advice: borrow money from them and leave the currency to float to stimulate the economy and create confidence in the economy, most Asian countries decided to follow the IMFs advice, except for Malaysia, the then outspoken prime minister of Malaysia (a methodical genius – responsible for Malaysia’s success) Tun Mahathir Mohammad, rejected the idea of the IMF and pegged the Malaysian currency to the US dollar allowing businesses to manage their business without being bothered by currency traders who were able to devalue currencies through short selling at their own whims and fancies – an idea that was scoffed at by the IMF – the end result however was, all the nations who swallowed IMFs advice took years to recuperate, Malaysia was out of the mess within one year. Fast forward to Greece –

The IMF and Gold

The IMF is again imposing ridiculous austerity measures in exchange for bailout funds, the entire scenario however is not too convincing as these situations create market uncertainty and market uncertainties cause gold prices to rally and based on a statement released by the IMF itself, the institution started approving the sale of gold in 2009 and has since periodically buying gold only to sell gold at higher margins in the wake of regional economic crisis when gold prices rally.

A Brisbane gold trader in an interview quoted that now is the time to have your gold in liquid positions as prices are expected to skyrocket in short bursts orchestrated by the IMF via short sells. Most Australian gold traders are quite aware of the IMFs ‘golden antics’ and are quite prepared to profit from the same ‘sell gold wave’ that the IMF will be riding on. Greece’s exit from the Euro Zone could easily go both ways for the gold traders in Australia according to the gold trader from Brisbane, as according to him it is all about the timing.

The gold trader from Brisbane who declined to be named went on to explain that prices of gold have been on the slight decline due to the rise in US interest rates, added employment and increases in payrolls boosted confidence in the bond market. However, things could quickly change if the impending gold margins present better opportunities to market investors as they dump their stocks and extend their tentacles into the precious market industry for quick gains which seems imminent.

The prices of gold which has been hovering at around 1,200 dollars per troy ounce for quite a while now could suddenly surge and has the potential to easily surpass the 1,400 dollar mark and increase of nearly 17 % of the current market prices. Rolling back to the IMF gold reserves of nearly 90 million ounces, the financial institution stands to profit or increase their current balances from their gold reserves by 17 %. Greece is definitely exiting the Euro, the years of being under the Euro and ending up bankrupt should be lesson enough, what is the point of belonging to a group that does not bring any benefits?