[1] This weekend the G7 consortium of rich countries announced they will sell off a portion of their gold supplies to better invest in other financial instruments yielding a higher return. Regardless of their stated intentions, the real reason behind this announcement is an attempt to drive down the price of gold. This is a strategy the G7 has used many times in the past when trying to cap the gold price rise. Their intent is to scare the market into thinking there will be a flood of new supply which will eventually drive prices much lower.While at times in the past this tactic has worked in the short term, it always fails in the long term because the underlying fundamentals behind the rise in the gold price is as strong today as it’s  ever been. Let’s examine some of specific factors why this strategy will fail once again:First, any sales of gold like this one has nothing to do with the market for gold, as not one ounce will ever see the free market. The buyers will be gold-poor central banks. Second, if you examine the history of IMF sales in the 70s is that all the sales did is allow huge buyers to enter the market at one price. That attracts the major buyers. Third, the following doesn’t mean a damn thing to the gold price trend. The only important fact is that the IMF just demonstrated its total lack of financial sense as it might only hold depreciating paper promises to pay nothing at all backed by nothing whatsoever. Fourth, the selling of gold like this only occurs in bull markets and has historically been useless to stop the price increase. In fact these sales helped the price of gold higher by facilitating demand from huge interest in the 70s and even more so now. So while the anti-gold crowd will attempt to exploit this announcement those nations with huge amounts of dollar reserves, like China, Japan, and the oil rich Mid-East will be high-fiving each other with a no-brainer plan to switch out of dollars and into gold. As a result this indicates to me the price of gold is not even half way to its upside resting point. This was true in the 70s. Finally those that control Black Gold also control Gold. Those that you feel have caused the problem and are anti gold are NOT. To know this you need only the eyes to see and the ability to connect the dots.This will be looked back at as great for the price of gold, as was the case in the 70s when the same entity, the IMF, proposed and did the same thing, only to stop before the buyers took all their gold. The same will happen if they even start.Note that the proposed sales come when the US Economic rescue plan is to occur. The reason is clear.