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What they wrote
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What they wrote
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From: "cxpowell" <gatacomm@...>
Date: Wed Feb 1, 2006 9:08 pm
Subject: Credit Agricole brokerage endorses GATA and warns clients: Start hoarding gold cxpowell
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9:06p ET Wednesday, February 1, 2006
Dear Friend of GATA and Gold:
Cheuvreux, the equity brokerage house of Credit
Agricole, the huge French bank, today distributed
a 56-page report that completely endorses in detail
the findings of the Gold Anti-Trust Action Committee
that the price of gold has been surreptitiously
suppressed by Western central banks and that
those banks do not have the gold they claim to
have.
The report, written by Cheuvreux's mining sector
analyst in London, Paul Mylchreest, is titled
"Remonetization of Gold: Start Hoarding." It
repeatedly cites GATA by name and foresees an
"unprecedented" rise in the gold price, possibly
accompanied by a spike to as much as $2,000.
The report's executive summary says:
"We are raising our mid-cycle gold price estimate
to USD900/oz from USD750/oz and see the
possibility of a spike to USD2,000, or higher. Covert
selling (via central bank lending) has artificially
depressed the price for a decade.
"Central banks have 10,000-15,000 tonnes of gold
less than their officially reported reserves of 31,000.
This gold has been lent to bullion banks and their
counterparties and has already been sold for
jewelry, etc.
Non-gold producers account for mostand may be unable to cover shorts without causing a spike in the gold price.
"There is a supply deficit in the gold market of around
1,300 tonnes per year before any central bank selling
and perhaps 700 tonnes per year after 'official' sales
but before covert selling.
This compares with world gold mine output of only 2,500 tonnes per year. Some central banks, notably Russia, are starting to buy gold.
"Gold acts as an early warning of potential crisis such
rising inflationary/deflationary pressures and general
confidence in paper currency, especially the U.S. dollar.
A strongly rising gold price could have severe
consequences for U.S. monetary policy and the U.S.
dollar.
History suggests that gold always wins against
an inflating paper currency (that is, one subject to
excessive supply growth).
"Gold and gold mining stocks are poised for an
unprecedented rise in prices and profile. Investors in
UK/European equities need to assess the implications
for their portfolios. ..."
The Cheuvreux/Credit Agricole report details GATA's
findings in Chapter IV, "Analysis of the Gold Market,"
and concurs in them as "broadly correct."
No financial house in Europe could be more part of
the establishment than Credit Agricole, and now its
endorsement of GATA is circulating among other
big financial houses in Europe and around the world.
This evokes what Adam Fleming, former chairman of
Harmony Gold, now chairman of Wits Gold, said at
GATA's Gold Rush 21 conference in Dawson City,
Yukon Territory, Canada, last August, just hours
before the current sharp rally in gold began: that just
a little investment demand could take the central banks
out of their gold "in the blink of an eye."
A LITTLE investment demand? Credit Agricole's
brokerage house has just declared: Start hoarding!
Gold Rush 21 was truly historic and decisive; it
gathered the world's top experts on gold to spell out,
explain, and publicize the gold price suppression
scheme, and the conference issued the Dawson
Declaration, an appeal for free markets in the precious
metals as a matter of basic human rights.
You can obtain a two-DVD set of the proceedings
of the Gold Rush 21 conference, including a
dramatic 25-minute video summarizing the
conference, produced by the brilliant Vancouver
videographer Trevor Johnston, at this Internet link:
goldrush21.com
And you can obtain the Cheuvreux report on the
gold market at GATA's main Internet site here:
gata.org
As for gold itself, you can get some from the
coin and bullion dealers listed at the end of this
dispatch. But as the Cheuvreux report gets
around, there may not be much left.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc. |
