It’s no secret that the IMF is looking to sell off 191 tons of gold this year. And if you’re wondering who will buy up most of those holdings, it’s probably going to be China, at least according to Dennis Gartman.
Gartman notes that China has plenty of catching up to do with other countries like the U.S., Russia, and France in terms of its gold holdings. China will no doubt continue to buy gold, but it’s not going to do it very fast.
The Gartman Letter: What then do we think about these Chinese rumours? We think that China does indeed intend to buy a good deal more gold for its reserve positions, for its holdings of gold are minuscule compared to that of the US, Germany, Russia, England, France, the EU et al, and China intends to ramp up its holdings… over time. Might it take all of the IMF’s gold for sale at present?
Certainly it might, and we shall not be surprised to find out that they already have done so. But rumours are rumours are rumours, as Gertrude Stein might have said were she a gold trader rather than a long deceased writer in Paris.
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