MUMBAI (Commodity Online): The big news this week is good price at which the International Monetary Fund (IMF) sold 200 tonnes of gold to India, the largest consumer of the yellow metal in the world. IMF sold half of its planned gold sale quantity to India for about $6.7 billion.
Was it a good price for India to buy gold? Or was it a good price for IMF to sell gold? Did India pay a higher price?
IMF says it is a damn good price at which it has sold 200 tonnes of gold to India. "Obviously, it's a good price relative to the original assumptions," the IMF official said.
The sale price of gold to the RBI is expected to be under $1,045 per ounce, nearly $200 per ounce higher than what it would have been anticipated in mid-September, a senior IMF official told reporters in a teleconference.
When the IMF Executive Board at its meeting on September 18 announced to sell 403.3 tonnes of gold -- one-eighth of the Fund's total holding - the prevailing market price of the bullion at that time was about $850 an ounce.
The IMF, in pursuance of the decisions taken at the G-20 summit in London, had decided to sell about 403.3 tonnes of gold to shore up its finances so that it can lend money to the poor countries at concessional rates.
