The Telegraph is reporting today on the ‘New Gold Rush’:
With the discovery of gold there in 1848, the California Gold Rush brought 300,000 people into the state, transforming what was then a backwater into the embodiment of the American Dream.
Excuse our cynicism, but shouldn’t this story be dead already?
The IMF, which has the worlds third largest holdings of gold bullion, has announced yet again plans to sell some of their gold holdings. As we reported before, in our Feb 29th Gold Market Update:
Our belief that the latest International Monetary gold proposal story was more spin than reality is seen in the fact that the IMF said on Thursday that no timetable has been set for the sale of a limited portion – about 12.9 million ounces (403.3 tonnes) – of the IMF’s gold stocks of 103.4 million ounces. The news was not widely reported unlike the previous ‘news’. In a background paper, the IMF said if the gold was sold on the market, as opposed to off-market transactions, the sales would be phased over time to avoid market disruptions, as recommended by an independent panel.
Factsheet – Gold in the IMF : http://www.imf.org/external/np/exr/facts/gold.htm
What is more interesting here, is not the obvious rehashing of an old story, but the changing spin it is given this time around.
Bloomberg published an article by Millie Munshi and Pham-Duy Nguyen quoting Mark O’Byrne of Gold Investments.
Gold Beats Financial Assets as Investors Seek Haven
‘At least 95 percent of the new buyers have kept their money in the bullion, Mark O’Byrne, Gold & Silver’s executive director, said in an interview on Feb. 26.