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MK Note: This could be the first in a series of positive shocks to the gold market. There are others — including China — who would not mind exiting the dollar for gold if given the opportunity. The real problem for the IMF is not going to be finding buyers for its gold, but a presentiment of fairness in doling it out. In a previous article, “China profoundly alters gold market synergy,” I talked about China and India pressing the IMF to sell the entirety of its 3200 tonne hoard. By positioning themselves as gold buyers of last resort ready, willing and able to scoop up any sizable offer, China and India have constructed a floor under the market price — a “gold put,” if you will. At the moment it appears India beat China to the punch, though China could very well be the buyer for the second half of the IMF offer. (Time will tell.) I suspect that there is more of this sort of activity rattling around out there beyond China and India. . . . . . . Needless to say this is important news with potentially significant knock-on effects for the gold market now and in the future. Like many of you, I can remember the clarion cry of the financial press years ago that “Central banks are selling gold” — a warning meant to deter private buyers. Well, that’s all changed now. . . . .”Central banks are buying gold.”