The International Monetary Fund has reported that it sold 200 tons of gold to the Reserve Bank of India for $6.7 billion.
A senior IMF official, speaking on condition of anonymity, on a conference call said that the trade was done at an average price of about $1,045 an ounce over a two-week period in the latter half of October.
The sale represents approximately half of the 403.3 tons of the The IMF has slated for sale. The full 403.3 tons represents about one-eighth of its total stock.
The sale to India comes as somewhat of a surprise as most speculation centered on China as buyer for the full 403.3 tons.
Don't you find it odd that India finance minister - widely reputed to be savvy - should have waited to buy gold at its all-time high? It doesn't sound right to me. Especially, since India sold its gold in the early 1990s at a much lower price.
ReplyDeleteLila,
ReplyDeleteYou are absolutely correct to be suspicious.
I think there is much more to it.
I have a very heavy schedule right now. But I will try to have a post up on it in the next day or two.
It could be a sale for SDR.
ReplyDeletehttp://ftalphaville.ft.com/blog/2009/11/03/81071/the-gold-for-sdr-swap-confirmed/