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-- Posted Tuesday, 3 November 2009 | Digg This Article | | Source: GoldSeek.com
India is buying 200 tons of gold from the International Monetary Fund for around $6.7 billion, almost half of the 403.3 tons that the IMF has agreed to sell to boosts its capital. The Reserve Bank of India sale involved daily purchases from October 19-30 at market prices, said a statement from the IMF, an average price of $1,045 per ounce. Bullish for gold Gold guru Jim Sinclair immediately commented: ‘This is extremely bullish for Gold as it proves our point that central banks would take all and any gold that becomes available for sale’. Observers will be surprised not to see China snapping up the IMF gold, and of course China might emerge as the buyer of the remaining hoard. China has boosted its gold reserves by 76 per cent to 1,054 tons worth around $32 billion since 2003, officials said in April. The Indian gold purchase also represents a diversification away from the US dollar, although gold reserves of $10.3 billion are still small by comparison to $268 billion in foreign currency. Recent encouragement from the Chinese government to its citizens to buy precious metals has been seen as putting a floor under gold prices, and the Indian purchase of IMF bullion can be noted as another substantial put option. Traditional wealth Gold has long been a traditional store of value in India where bridal jewelry still represents a reserve of the precious metal far above those held in the vaults of the Reserve Bank of India. But in Dubai sales of jewelry are substantially down this year as Indians are also shrewd buyers and do not like to buy when the price of gold is high. Perhaps the Reserve Bank of India’s gold purchase will now convince the public that gold prices are not going to get any cheaper and bring them back to the souks.
-- Posted Tuesday, 3 November 2009 | Digg This Article | Source: GoldSeek.com
Previous Articles by Peter Cooper
About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in
1999 to complete his first book, a history of the Bovis construction group.
Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.
 Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.
He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.
Order my book online from this link
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India Buys $6.7 Billion Worth of Gold from the IMF
