Gold On The Way Up ?

[LaoPo]

GOLD on the way up ?

Gold is trading around $ 650 now.

Some people even speak about $2500 soon...

I have a strong sense that Gold is going way up....

Your opinion is most welcome.

LaoPo

[churchill]

When the IMF is considering selling it must be a good time to buy - consider Gordon Brown - Dollar down gold up ++++++

IMF urged to sell 400t of gold

01/02/2007 08:18

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IMF battles cash crunch

New plan for emerging mkts

'Gold sales mustn't hurt market'

IMF might sell, re-value gold

'Scope for gold to hit $850'

Washington - A panel of financial statespeople advised the IMF on Wednesday to sell 400 tons of its gold reserves as part of a new strategy to avert a long-term crunch in its finances.

But the International Monetary Fund should proceed with care in selling any gold to avoid destabilising world markets, the panel members including former Federal Reserve chief Alan Greenspan recommended.

The IMF has more than 3 200 metric tons of gold as part of its financial stockpile, but has fought shy of offloading any of it. The sale of 400 tons could raise $6.6bn at current market prices, the panel said.

IMF chief Rodrigo Rato appointed the panel in May last year to come up with ideas to avert a cash crisis for the global lender, which has seen its operational income slump as debtor countries repay their Fund loans early.

The committee was chaired by Andrew Crockett, former head of the Bank for International Settlements, and also included European Central Bank president Jean-Claude Trichet and People's Bank of China governor Zhou Xiaochuan.

Interest income dwindles

Crockett called it "curious" that the IMF does better financially when its members are in economic crisis, as it earns much of its day-to-day income from interest repayments on bailout loans.

To change this, the panel said the IMF should broaden its investment mandate, with a view to generating extra income of $45m a year on capital markets.

And the IMF could invest part of the annual dues paid by its 185 members, yielding a potential $300m a year.

"There is no financial crisis facing the Fund," Crockett told a press conference.

But he stressed: "We do believe it is important to begin this process of developing a new income model soon, so we recommend that it starts straight away."

New income model

Rato welcomed the recommendations, which will be taken up for debate by the IMF's executive board.

"The report represents a key milestone in our work and is an important step in developing an appropriate new income model," the IMF managing-director said.

Money from the gold sales should be put in an

[Jamie]

Check out the charts over the last 5 years for Rhodium. I think gold will possibly see $800. I can't see it climbing to $2500 unless you had a major world event (very major).

[LaoPo]

Check out the charts over the last 5 years for Rhodium. I think gold will possibly see $800. I can't see it climbing to $2500 unless you had a major world event (very major).

Here you go:

Rhodium

http://www.kitco.com/charts/historicalrhodium.html

LaoPo

[SamuiJens]

Check out the charts over the last 5 years for Rhodium. I think gold will possibly see $800. I can't see it climbing to $2500 unless you had a major world event (very major).

Here you go:

Rhodium

http://www.kitco.com/charts/historicalrhodium.html

LaoPo

Wondering where you've hear this claim,Laopo?

[LaoPo]

I'm not sure what you mean...?

Rhodium or Gold ?

I see an uptrend in Gold for the near future but don't know anything about Rhodium; didn't follow the trend.

LaoPo

[Jamie]

The problem with gold reaching these highs ($800+) is that mines that were shuttered before because they were not profitable at lower gold prices, soon become profitable again. The extra gold coming in to the market of course drives the prices back down.

Rhodium was the same way. Before the big uptrend you can see in the chart, prices were relatively cheap. This was because prior to the uptrend, a glut of Rhodium hit the market from mines in South Africa I believe.