Hi Vhf!

I think Chavez is a minor-league idiot and his snickering about the IMF is just another failure of statesmanship from a little man. It rings true that the US is in bad shape if a tinhorn dictator from a third rate nation can clown on the IMF. But the guy cannot be taken seriously anymore than the IMF threats to sell gold. How sad that what was once the greatest nation on earth has lost stature such that a stuffed shirt like Chavez can punk on them.

The one thing to take away from that is at least it illustrates just how inconsequencial the IMF is in the bigger picture of the gold story. Investors have reacted very bearishly to that IMF threat to sell gold, but in reality the sales, if they come to pass, will be easily absorbed by the market and the net effect has already been over-discounted into the spot market.

cheers!

mike