This kind of news is fascinating from all angles. First of all, why did India buy that much gold yesterday? The easy answer would be that it is diversifying its reserve currency. Sounds good, as a lot of countries are doing just that lately. By why buy gold from the IMF? News out of Dubai are speculating that the IMF is selling gold as part of its long term strategy to curb the ascent of gold as the commodity of choice for fear investing. Well if that is the case, the exact opposite is happening right. Gold is now trading at US$ 1,095.05 as of tonight and god knows how the markets will react to a race towards gold.
Does anyone want to take a bet on how long it will take for the Canadian $ to go right through the parity ceiling? Don’t think the Chinese and the Germans go unnoticed this Christmas in gold town Timmins Ontario.