It’ll take more than news that the International Monetary Fund plans to sell gold to bring down the price of gold. Sure, the IMF wants to sell 12%, or 403.3 tons from its 3,217.3 ton reserve to raise about $6 billion, and help make up for a $140 million budget shortfall.

But demand for gold is strong. With tight supply and heavy demand, jewelers and investors alike will be lined up to take it off IMF hands. Gold mine productions are failing to keep up with demand. It’s all part of the reason gold prices have quadrupled in several years.

Still, the sale is far from being a done deal. The DC-based organization needs Congress, which holds 17% of IMF voting rights with veto power, to approve the deal. But even with approval, it’s not as if the IMF will suddenly dump 403.3 tons on the market. That’d be a concern, but unlikely.

Global gold production fell to 10-year lows of 2,444 metric tons in 2007, according to reports. We’re likely to see more declines this year. All the while, petrodollars are buying up gold. Middle East demand for gold is up 30%. Dubai gold sales are up about 24% to $2.6 billion. And in Saudi Arabia, gold demand was up more than 15% to 120.2 metric tons.

Take that into consideration, and buy more gold here. With the Fed expected to cut rates again, we’ll have a weaker dollar, which will support higher priced gold. Plus, we’re likely to see a steady migration toward the safe havens of gold.

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