Gold News

IMF Gold Sales: Does It Matter?

A growing number of traders, gold bullion banks and vault operators are making use of the Dubai Gold Receipt system to obtain credit secured on gold inventories.

According to the Dubai Multi Commodities Centre (DMCC), more than $100 million worth of financing has been secured in this way in the last eight months - which may be further indication of the increased confidence being placed in the yellow metal.

With investors already flocking to gold investments for security in the face of a weak dollar and economic uncertainty, the DMCC's announcement could be another indicator of the current strength of gold.

"Given the current volatility in global gold markets and the ensuing Basel II regime, banks are on the lookout for secured lending options that enable them to mitigate risk better," commented Ahmed bin Sulayem, executive chairman of the DMCC.

Dan Looney of Towry Law recently told the Guardian that commodities such as gold can hold much lure for investors in a climate of inflation.

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Adrian Ash runs the research desk at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern and FT Deutschland; Italy's Il Sole 24 Ore, and many other respected finance publications.

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