IMF to sell 12% gold for funds

The International Monetary Fund (IMF) has said that it would sell part for its gold holdings, in order to meet its budgetary shortfalls of $140 million for the fiscal year ending April 30. IMF has identified to sell 12% of its gold holdings, or 403.3 tonnes of gold valued more than $11 billion. IMF also plans to cut costs.

The market analysts opine that the sale will not deter bullion prices, as gold is still looked upon as a key investment. The sale would have to comply with the central banks’ gold sale agreement and it is likely to be spread over several years to avoid market disruption. The sale is still subject to approval by its 185 member countries and the US Congress.

The sale is also being looked upon as an opportunity for gold to move into private hands. The IMF is the third largest holder of gold in the world, with 103.4 million ounces (3,217 tonnes) of gold with a market value of $95.2 billion as of February 20, 2008.