Last week Eric Sprott, who heads up the Sprott Physical Gold Trust (NYSE:PHYS), created a bit of a storm when he offered to buy the IMF's remaining 191.3 tons of gold for sale on the market. The IMF told him to piss off.
So the world started wondering if the IMF actually has the 3,005.3 metric tons of gold it claims. Or, if the US and other countries have the gold they claim to have.
The issue really comes down to ownership. We all know the old adage, "Possession is 90% of the law." One wonders if that applies to the IMF.
The IMF originally got most of its gold from payments of quotas, whereby member countries paid in 25% of their funding quotas to the IMF in physical bullion. This method was maintained until 1978 when it was already abundantly clear that gold production couldn't keep up with government printing presses and the gold standard was abolished. (more)
No comments:
Post a Comment