Posts Tagged ‘gold traders’

IMF Sells 200 Tonnes of Gold to RBI


IMF Sells 200 Tonnes of Gold to RBI

The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India (RBI) for $6.7 billion in order to shore up the Fund’s finances to enable it to boost the concessional lending to the world’s poorest countries.

This sale of gold to India represents almost half of 403.3 tonnes of total sales volume, which was approved by the IMF Executive Board September 18.

IMF said that the transaction involved daily sales, which were phased over a period of two-week during October 19-30.

The price at which the each daily sale was conducted was set on the basis of market prices prevailing that day, it said.

This deal will increase India’s gold holdings to the tenth largest among the Central banks.


“I strongly welcome this transaction with the Reserve Bank of India,” Managing Director Dominique Strauss-Kahn stated.

“This transaction is an important step toward achieving the objectives of the IMF”s limited gold sales programme, which are to help put the Fund”s finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries.”


The IMF, which currently holds 3,217 tonnes of gold, is the third-largest official holder of the precious metal after the US and Germany.

The IMF has made gold sales a key element of its new income model aimed at lowering its dependence on lending revenue to cover expenses.

Under the Fund’s Articles of Agreement, all gold sales must be conducted at prices based on market prices, including direct sales to official holders as in the case of this transaction with India, the IMF said.

The Group of 20 key developed and developing countries, at their April summit in London, agreed the gold sales should allow the IMF to offer favourable conditions on loans to the poorest countries.


income model

Gold Prices Increased to a Record High @Rs 15,900 !!

gold rates

Driven by last minute heavy purchases by traders in order to build up stocks before the start of the inauspicious ”Sharad”, the gold prices increased to a record high of nearly Rs 16,000 per 10 gram in the national capital.


However, the costly metal spurted by Rs 200 from Thursday’s level at scale a new peak of Rs 15,900 per 10 gram.


Additionally, the prices of silver coins too skyrocketed to an all time high of Rs 31,200 per 100, pushed up by a steep rise of Rs 700 up in silver rates at Rs 25,300 per kg.


Moreover, the raise in the gold rates was due to heavy demand from jewellers and stockists before Sharad.


Additionally, the rally was also sparked by gold”s rise in the overseas markets to a six-month high, towards 1,000 dollars an ounce.

Further the ambiguity in the stocks, which remained more unstable in last one-week, left very less choice for the investors but to invest in bullion as a safe haven.


However, in the last one week the BSE index Sensex fell for four consecutive days, but gained 290.79 points on Friday at 15,689.12, the last trading day of the week whereas silver ready surged by Rs 700 to Rs 25,300 per kg and weekly-based delivery by Rs 560 to Rs 25,700 per kg.


Moreover, the standard gold and ornaments shot up by Rs 200 each to Rs 15,900 and Rs 15,750 per 10 gram respectively.