Gold Rockets Towards $1,100

Everyone thought that the Chinese government was a major player in buying gold; however, it turns out that it was India. As I write at 1pm on Tuesday, gold is up $360 for the last year, $81 for the last 30 days, and $24 for TODAY! 

It's kind of hard to find a better return!  :-)

The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India for $6,7 billion, quietly executing half of a long-planned bullion sale that has threatened to slow gold’s ascent. The deal, which surprised traders who expected China to be the most likely buyer, will relieve the gold market of some uncertainty over how and when the IMF would sell 403,3 tonnes of gold, about one-eighth of its total stock.

The deal will increase India’s gold holdings to the tenth largest among central banks.

It also fuelled speculation that other governments, including Beijing, may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.

Why not, the G-20 is meeting to try anbd figure out how to DUMP the DOLLAR and bring on a new world currency. Thanks a lot Dubya and Obama for taking us down the road to ruin! Oh wait, you had a lot of help from Congress and the Federal Reserve whose job it is to protect the US$.

What a mess we are in!

Gold futures for December delivery rose to a record $1,087 an ounce on the New York Mercantile Exchange’s Comex unit and traded at $1,084.20 at 1:28 p.m., up $30.20, or 2.9 percent. A close at that price would be the biggest gain for a most-active contract since March 19.