Jubilee Prosperity

It is a singularly notable event when the IMF decides to sell 403 tonnes of gold, one eighth of their reserves, 12,965,649 troy ounces (12 Roman uncia/ounces per pound) with India buying almost half.

http://en.wikipedia.org/wiki/Troy_ounce

What frantic gold bull headlines luring lemmings to plunge do not disclose is that the IMF is selling gold accumulated since 1978 at much lower prices. Buy low and sell high makes money. Buy high and sell low does not.

http://www.imf.org/External/NP/EXR/faq/goldfaqs.htm

Despite mistakes made by Federal Reserve and Treasury Bankers at the expense of consumer citizens and taxpayers, not all investment bankers are fools.

This is why the Big4 are 170% short gold and 450% short silver. Are they really naked shorts when big banks can borrow all the money they want from the Fed?

http://www.cftc.gov/dea/options/other_lof.htm

So far, George Soros is the only person we know who broke the Bank of England with his reflexive trading after losing a lot trading against GS on 20 October 1987.

http://en.wikipedia.org/wiki/George_Soros

Now we have hysterical predictions of higher gold in 24 hours by professionals that often mark mania tops and career changes.

http://www.zerohedge.com/article/gold-set-hit-1200-within-24-hours

Even mass media headlines are ebullient, albeit hiding the fact the GLD holdings peaked out at 1134.03 tons last June 1st:

http://www.smh.com.au/action/printArticle?id=918781

Let us not forget China last Summer warned of defaulting on select underwater toxic commodity derivatives. This is hardly bullish for gold.

http://www.reuters.com/articlePrint?articleId=USTRE5801UT20090901

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