Gold Presses $1080 an ounce on news of huge Indian purchase from IMF reserves!

Dear Subscriber,

Gold has traded as high as $1080 an ounce today as news hit the market that India’s central bank bought 200 metric tons of the metal from the International Monetary Fund. This is what I have been predicting for the past several years. The point at which Middle Eastern, Indian and Asian banks start accumulating gold as part of their reserves in order to reduce their exposure to the U.S. Dollar.

 “It’s positive in many ways,” said James Moore, an analyst at TheBullionDesk.com in London. “It suggests central banks, rather than being net sellers, are now looking at becoming net buyers. It’s a surprise because everybody was talking about China being the buyer.”

This Indian transaction is literally the biggest single central-bank purchase that we know about for at least 30 years in such a short period and the only comparable event was the U.S.’s steady purchases of gold bullion back in the 1930s and 1940s.”

India’s purchase, was executed Oct. 19 to Oct. 30, buoyed gold as industrial metals slumped on concern that governments will remove economic-stimulus measures, crimping demand for raw materials.  

India held 350 tons of gold at the end of 2008, making it the 12th-largest government owner, according to the GFMS 2009 Gold Survey. The extra 200 tons propels the country past Russia into ninth place, according to GFMS figures. India is the largest buyer of gold for jewelry and investment.

The IMF’s executive board approved sales of 403.3 tons back on Sept. 18, pledging to avoid disrupting the market. The board last year backed the sale, about an eighth of the organization’s total stockpile, as part of a plan to shore up its finances. Meanwhile China increased its gold reserves by 76 percent since 2003 to 1,054 tons, according to official Xinhua News reported in April BUT I believe the Chinese are and will buy large amounts of gold bullion in the same effort as the Indian Government, which is to hedge its exposure the nations U.S. Dollar reserves..

I’m not the only that believes that China may be interested in the rest of the IMF gold for sale. James Moore of BullionDesk.com’s also believes and considers Russia and Brazil as also large viable partners.

I’ve gone on record as stating gold is heading for $1,200 by years end and could run to $2,500 even $5,000 in the next 3 plus years.

If you haven’t added physical gold to your Self directed IRA or to your investment portfolio please don’t wait. Call 1-866-697-4653 one of my gold specialists at Finest Known. They know what I’m recommending and are very easy to work with.

Best Wishes,

James DiGeorgia

Editor

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