India Sells 6.7 Billion U.S. Dollars For Gold
India sent a very clear signal today when it announced it had bought 200 tons of gold from the IMF for $6.7 billion. India, with the fifth-largest foreign reserve of any country, made the largest ever purchase of gold, signaling what they saw was weakness in the U.S. dollar.
The Financial Times reported that Pranab Mukherjee, India’s finance minister, said that the European and U.S. economies had collapsed. Central bank holdings around the world went from %9.9 reserves in gold a year ago to %12.6 today. The said that India felt is was overweight in U.S. Treasuries.