Tuesday, November 3, 2009
Gold surges to new record high
Voltron says: the IMF sold 200 tonnes of gold to India for $6.7 Billion. Normally that much supply would crush the price of gold, but instead the price surged. The reason is because the IMF had already announced that it would sell 400 tonnes of gold so the market already factored that in. The fact the India is buying it as reserves to put in a vault, never to see the light of day means that supply is basically gone rather than flooding the market.