The International Monetary Fund says it plans to sell gold from its reserves, and the announcement at the Group of Seven (G7) meeting in Tokyo confirmed those moves could come as early as April.
The maneuver widely is understood to be aimed at an IMF goal of depressing the price of gold worldwide.
On Friday, gold surged to a high of $923 an ounce on international exchanges.
The IMF decision did not surprise financial analyst Michael Bolser, who has been predicting such a move for months in his subscription newsletter connected to his Interventional Analysis website.
The IMF goal appears to be to shove the price of gold back down into the $500 per ounce range, Bolser told WND in an exclusive telephone interview.
Bolser said a secondary goal is for the IMF to gain control of as much of the world’s gold reserves as possible.
“This grab of IMF sovereign gold held in central banks around the world matches what the Federal Reserve did in 1934 when the Treasury grabbed U.S. citizen’s wealth after a long and debilitating depression created by the Fed through excessive lending,” Bolser said.
Technically, the gold held by the IMF is pledged by central banks when sovereign nations join the IMF.
The IMF then becomes a repository for gold pledged by members of the IMF, with the bulk of the gold held by the IMF pledged by the United States.
“The vast majority of gold analysts have been in denial that the IMF would make this move,” Bolser said. “Now, I expect the gold experts to say the IMF gold sale will have no effect on the price of gold on world markets.”
“We don’t know how many tons the IMF will sell and when the sale will hit the market,” he continued, “because so much of what the IMF does is intentionally hidden from public view through complex contracts and transactions that are typically not clearly disclosed.”
“The goal of the Federal Reserve is to get the price of gold down and obtain for the larger central banks legal possession of the gold from the sovereign central banks,” Bolser stressed.
“As a first step, the IMF will require its member nations to transfer gold from the smaller central banks into the larger central banks in the U.S. and perhaps the United Kingdom,” he added.
“I don’t expect an instantaneous market reaction to the IMF’s announcement this weekend,” Bolser cautioned. “The IMF will make it appear as if the news didn’t have any effect.”
“But don’t make any mistake about it,” he continued. “The price of gold is now under assault from the IMF gold sale announcement and this weekend’s disclosure was just the first wave.”
“The IMF wants push the price of gold to $500 or below,” he said, “and right now is not the time to be long holding gold.”
In his subscription newsletter for Monday, Bolser reported that Goldman Sachs is stating internally that gold will stay where it is for the next 90 days, then fall dramatically in price, an analysis which support’s Bolser’s analysis of the IMF announcement to sell gold.
Italian Economy Minister Tommaso Padoa-Schioppa, in making the IMF announcement at the G7 meeting in Toyko, told reporters the IMF agreement to sell gold would be finalized in April and would complement spending cuts currently being planned by the IMF under its new managing director, Dominique Strauss-Kahn.