Dear CIGAs,

There has been a lot of good MOPE prior to the G20 event with gold above $1000.

1. IMF sales will never touch the gold market, but be absorbed by central banks seeking to diversify out of dollars.

2. IMF sales in the 1970s that had a market relationship via auction tranche sales took place in the conditions of a rising market.

3. IMF sales in the 1970s were credited with providing the means for major interests to enter the market in the 1970s by buying singular blocks of physical gold at one net price.

4. The value in dollars of IMF gold sales is peanuts at $13 billion when compared to at least $500 billion dollars remaining in Chinese reserves that are seeking diversification.

5. There is absolutely nothing new here from the July 27th IMF announcement as this vote after the US agreed in July was a foregone conclusion.

6. This is a repeat of the July 2009 releases which you know certainly did not stand in gold’s way. This won’t either.

To the gold long this is well timed pre-G20 MOPE that will not injure the trend of gold in any sense, nor will it improve the dollar’s weak position.

If you have questions for me on this or any other subject this weekend I have a special email address for you to send in questions. That email address is jimsinclair108@gmail.com ^[1].

The above email address is for this weekend only.

Regards,
Jim

IMF Board Approves Sale of 403.3 Metric Tons of Gold 
By Sandrine Rastello

Sept. 18 (Bloomberg) — The International Monetary Fund’s executive board approved gold sales of 403.3 metric tons valued at about $13 billion and pledged to avoid disrupting the market with the transactions.

The IMF said it would “stand ready to sell gold directly to central banks.” The sales could also be conducted in the open market in a “phased manner” over time, the Washington- based lender said in an e-mailed statement today.

“These sales will be conducted in a responsible and transparent manner that avoids disruption of the gold market,” IMF Managing Director Dominique Strauss-Kahnsaid in the statement.

The IMF board last year endorsed the quantity to be sold, which accounts for one-eighth of the IMF’s total gold stockpile, as part of a plan to shore up its finances. The sale will also increase the agency’s ability to lend at reduced rates to low- income countries. The IMF is the world’s third-largest holder of gold reserves.

Gold futures for December delivery fell $3.20, or 0.3 percent, to $1,010.30 an ounce today on the New York Mercantile Exchange’s Comex division.

The U.S. Congress in June approved legislation that permits the American representatives at the IMF to agree to the sale.

More… ^[2]