I really have to stop reading financial stuff in the morning before blogging. It just doesn’t help at all. Not at all. The worst part….readers of this blog pay the price.
This morning I read a super short piece from Reuters regarding the IMF and a planned gold sale. By the way, the IMF is the “International Monetary Fund.” These guys are out there every day watching out for our interests…..really, they are.
Apparently, the IMF plans to sell some gold in the very near future. They’re looking to raise some funds to reinvest elsewhere. The specific statement…..
“This is arguably a good time to consider selling some of these gold holdings and investing the proceeds in financial securities with positive yields.”
Ah, sell gold so you can invest elsewhere in paper assets that have positive yields. Hmmm. In the decade I’ve followed the yellow metal it has gone from $270 per ounce to well over $900 per ounce. I guess the yield isn’t positive enough. Maybe they’d like to invest in some securities backed by sub-prime mortgages. It would make sense…..those things were super high yield…..oh wait, isn’t that falling apart?
Maybe they’d like to invest in ethanol. There’s a good bet!
Several years ago the Bank of England dumped gold too. The man in charge at the time isn’t so popular now in England……ah well. Somebody should send him a VT. Teddy Bear to cheer him up.
One of the key arguments against gold (for those who want to stay away from a pegged currency) is that it doesn’t yield a return. It costs a lot to store it, and it’s not easy to deal with in international trade. These are also the people who think printing money at will is a good idea, and that as long as we under-report the true state of inflation everybody will be ok.
So, if you’re interested in a little financial security there will surely be a dip in the price of gold in April. If the IMF dumps the price will dip, and you’ll have a buying opportunity. Oh, by the way, the whole point of the sale isn’t to cash in….it’s an attempt to slow gold’s giant leaps ahead (a clear indicator of economic weakness and inflation).
Entries (RSS)