It appears the demand for gold may be increasing. Another central bank has purchased gold from the IMF.
That’s right. After selling about 200 metric tons of gold valued at around $6.7 billion to India’s Central bank, the IMF announced that it sold another 2 metric tons to the central bank of Mauritius.
While the deal is small compared with to the one with India, it does suggest that emerging economies are seeking to hold more gold in their reserves.
India as well as China and Russia have all indicated interest in such purchases as a way of reducing their exposure to dollar-denominated securities, considering the greenback's steep fall.
What’s the trade?
To me the developments suggests an increased demand for gold. As far as I can tell the price should go higher, speculates Tim Seymour.
And China holds only 2% of their reserves in gold, adds Joe Terranova. That’s reason enough for me to stay long.
At this rate I think gold could go to $1300, adds Pete Najarian.
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Trader disclosure: On Nov. 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (POT), (NUE), (AAPL), (BAC), (EEM), (GE), (INTC); Finerman Owns (FLS); Finerman's Firm Owns (MSFT), (NOK), (PLCE), (TGT), (CBY), (BGC), (WMT); Finerman's Firm Owns (BKS) Puts ; Finerman's Firm Is Short (USO), (IJR), (MDY), (IWM), (UNG), (KFT); Finerman's Firm Owns (BAC) Preferred, (BAC), (BAC) Call Spreads; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (FLS), Is Short (FLS) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Owns (POT), (SU), (AAPL), (GOOG); Terranova Owns Dec. Crude Oil . Futures; Terranova Owns Dec. Gold Futures; Terranova Owns Dec. Nat Gas Futures; Terranova Works For (VRTS) ; Najarian Owns (ANN) Call Spread; Najarian Owns (DTV) Calls; Najarian Owns (JRE) Calls; Najarian Owns (CLF) & (CLF) Calls ; Najarian Owns (AA) Call Spread; Najarian Owns (EXPE) Calls ; Najarian Owns (GE) Calls ; Najarian Owns (INTC) & (INTC) Calls ; Najarian Owns (LAZ) & short (LAZ) Calls ; Najarian Owns (MCD) Call Spread; Najarian Owns (QLOGIC); Najarian Owns (RIMM) Call Spread; Najarian Owns (YHOO) & (YHOO) Puts
For Nishu Sood
(TOL) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (RYL)
(RYL) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (PHM)
(PHM) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (MTH)
(MTH) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (MDC)
Deutsche Bank Owns (LEN)
(LEN) Is an Investment Banking Client of Deutsche Bank
Deutsche Bank Owns (KBH)
(KBH) Is an Investment Banking Client of Deutsche Bank
For Jeff Saut
Raymond James Owns (WMT)
Raymond James Received Compensation from (MO)
Raymong James Makes A Market in (AMSC)
Raymond James Received Compensation from (AIV)
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