Saturday, September 19, 2009

IMF Gold sales to decentralize Central Banking?

The IMF has decided to sell 403 tons of Gold to "finance a new income model for the fund."

Interestingly, the IMF , according to their press release, would be prepared to sell gold directly to central banks or other official sector holders if they expressed interest.

Judging by recent reports from Russia, China and Hong Kong, there is indeed an interest for Gold from official sector holders.

In the event, I suspect redistributing the world's Gold will decentralize Central Banking, and maybe even make the world's balance of payments system a but more robust as its reliance on the US$ as reserve asset of choice, declines.

It looks like the barbarous relic is coming back into vogue.