BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Is It A Good Time To Sell Gold Yet

Market Movers

by Felix Salmon
Main
Watch Out Below!   Google: Expensive, or Cheap?

Recent Blog Posts

Links

Mar 04 2008 12:00am EDT

Is it a Good Time to Sell Gold Yet?

With gold topping $980 an ounce, talk of the IMF selling some of its gold reserves is resurfacing again - apparently the US is in favor of "limited" sales, but might still veto any gold-sale proposal, if that makes any sense. Of course the problem is that the Fund has far too many shareholders to be able to come easily to any final decision.

In this case, of course, the Fund's enormous inertia has proved to be extremely valuable: Britain, where the Chancellor is able to make such decisions single-handedly, sold far too early, at an average of $275.60, between July 1999 and March 2002.

I've never quite understood why the IMF is sitting on so much gold - it hardly seems central to any of the Fund's objectives. Inevitably some of the reserves will get sold sooner or later. But the foot-dragging might go on so long that gold could be back down to $275 before that happens.

. □

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.


Connect With Portfolio.com
Like Portfolio on Facebook

Come on, like us—you know you want to.

Follow Portfolio on Twitter

Follow us and if you're an innovative entrepreneur, we'll return the favor.

The Mix

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

Slideshows

500 Startups Hits New York

Dave McClure's brainchild makes its way to New York and introduces East Coast money folks to some intriguing new companies. View Slideshow