Hi Junior, Matt and all! BYG at 0.52!! With the recent reserve calculation with the OMNI/TRUMPETEER property and the low cost of production I would think that BYG is a steal at these prices. The low price of gold has certainly hurt BYG's market but maybe the tide is turning. The article below is a must read for those of you die-hard goldbugs.
(USA GOLD-web page)
Chase Manhattan Bank reported that 38,654 ouces of gold left its COMEX certified
warehouse yesterday -- a figure far above what we are accumstomed to seeing on a
day to day basis. This probably has something to do with today's breakout. The Chase
Manhattan draw down follows reports yesterday that Swiss Bank had been greatly
overstating their gold and silver warehouse positions at the COMEX. Some within the
industry are calling for COMEX to audit the certified warehouses which now include
Chase Manhattan, Iron Mountain, Morgan Gauranty and Republic National. Swiss
Bank Corp announced that it would cease operations as a gold & silver COMEX
depository upon revealing that it had overstated its gold position by over 30,000
ounces and its silver position by over 3,000,000 million ounces last Friday. What is left
of their positions was transferred to Republic National. There are conflicting reports
whether or not Swiss Bank's ceasing of depository operations was voluntary or an
action of COMEX. Our bet is on the latter and that there may be more problems of
this nature buried in the figures. The financial press is doing its best to gloss this thing
over as an honest mistake, but insiders tell us that at one point Swiss Bank accused
Republic National of reporting to COMEX less than what it received -- an accusation
Republic angrily denies. Beyond the in-fighting, cover-ups, and rumors is a far deeper
set of problems. The gold price has not been held down by free, or normal, market
action and that is becoming increasingly evident. The short gold position both on
COMEX and originating in London is unprecedented and enormous. Frank Venoroso,
a columnist for Forbes magazine and gold market expert, has put the central bank gold
loan postion at 8000 to 10,000 tons --about one quarter available total central bank
reserves. Right now the open interest on the December contract is at a record
level and some say a squeeze is developing. If Swiss Bank Corp. was
under-reporting their warehouse stocks, what was the reason? Could it be that
the bank had/has enormous short postions it needs to cover at a lower price?
Do we have another Nick Leeson/Sumitomo brewing here, that neither
COMEX nor those involved want to make headlines? What are the other
COMEX depository companies up to? And why isn't the finanial press jumping on
this story with both feet? The reports today are strangely muted on what could be a
major scandal at COMEX. We could also be seeing the first chapters beginning to
emerge of the full story on why gold hasn't been able to get out of its own way in
recent years . The story needs to be told and investors need to realize that what is
going on with COMEX warehouse stocks is no small matter and by no means an
honest mistake. If it had been, COMEX would not have thrown Swiss Bank out on its
ear.
Let's hope this is an indication of better days ahead!
gemini |
