Gold Prices have started declining. Many may assume it due to profit booking. But the actual facts are:
- The Total Gold held by all countries including International Monetory Fund (IMF) is 1,45,000 tons.
- Of this IMF alone holds about 5041 tons of Gold as reserves (being pledged by member nations).
- In the recent G20 meet, the member nations have unanimously decided to permit IMF to sell 403 tons of Gold ( roughly 1/8th )and generate adequate cash to fund the needy nations.
- For instance Mexico (Russia) has requested IMF for a loan of US $ 45 Billion.
- The total sale value of 403 tons in todays (Rs.1490 per gram) along with existing reserves with IMF would be used in funding poor nations to the tune of US $ 1.1trillion over the next two years.
- So Gold is likely to rule weak from hereon. In case you have an idea to buy gold, hold on for a price correction of 10% or so.
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