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article imageIMF to begin sales of 191.3 tons of gold bullion 'shortly'

By Andrew Moran     Feb 18, 2010 in Business
The International Monetary Fund has announced that it will begin to sell 191.3 tons of gold bullion soon to reduce its dependence on lending revenue.
On Wednesday, the International Monetary Fund said it will soon start its selling of 191.3 tons of gold bullion, which would be worth just less than $7 billion, according to Reuters. The decision is part of an effort to reduce its dependence on lending revenue and profits from the sale will be used to create an income-generating model.
One ounce of gold bullion is currently trading at $1,103USD, reports CNBC.
In order to avoid disruptions in the gold market, reports the Economic Times, the IMF will be conducting sales in a phased manner, which leaves the speculation that central banks can buy gold directly from the IMF.
The first manner was conducted on a first-come first-serve basis and set aside exclusively for off-market sales to public entities. India was the first customer and bought approximately 200 tons, while Sri Lanka and Mauritius purchased a combined 12 tons.
“We still need to see what happens to the gold price during the second half of the sale before we can conclude that we have additional revenues. The initiation of on-market sales does not preclude further off-market gold sales directly to interested central banks or other official holders,” said Andrew Tweedie, the IMF Fund Director, reports AFP.
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