Le Metropole members,
Yes, it IS time to be aggressively long. The
"collusion crowd" is feeling the heat for orchestrating
too low a gold price. The IMF gold sale is history at the
moment as it will not get through the U.S. Congress, the
Swiss gold sale is in serious jeopardy, African countries
are pleading with the English and the IMF to cancel sales,
and The Black Congress in the U.S. Congress is up in arms.
Therefore, the spotlight is on the "gold cartel crowd"
-( the bullion dealers led by Goldman Sachs, the Clinton Administration, and the Blair administration in England ).
It is becoming too obvious what they have been up to so
they have decided that it would be better for their
grand scheme for the price of gold to rally. For example -
this is what kind of flack Tony Blair has to put up with:
Langkawi, Malaysia ( Dow Jones ) - The U.K.'s Bank of
England should suspend all sales of its gold reserves,
South Africa's Deputy President Jacob Zuma said Monday.
"The reality is we want the Bank of England to halt
the sales," he said at a new conference on the fringes
of an international economic conference on the
Malaysian Resort Island.
Thus, Goldman Sachs initiated a hasty conference call
for its clients this morning and came up with some
lame supply/demand reasons why the price of gold is
going to average $270 this year, $275 next and $290
the year after. ( Make that $375 or $475 next year, not
$275 ).
Dan McConvey, their precious metals analyst,
told Goldman's clients that: mine supply is being
curtailed at these prices, the high grading that
is going on is unsustainable as gold mines to not
have the long life reserves capacities of base metals
mines ( 10 years versus 20 years respectively ) and
that is politically incorrect for central banks to be
seen selling gold at this point in time. I wonder if
Blair and Co. told that to McConvey?
Goldman Sachs has been a big buyer recently so they
had to tell their clients that they felt a rally was
coming- after they finished buying of course. This buying
probably came on on notification from Peter Fisher at
the New York Fed who got the word from "the top" that
the manipulation game plan has been altered for the
moment. That is - they are going to orchestrate, or
"allow" the gold price to go higher to temporarily
diffuse some of the political pressure that is being
exerted upon them.
So uptown we go and we know WHY the gold price will
go up. That does not mean the manipulation is ending.
It just means that are side is gaining ground and
that means we will only intensify GATA's efforts to
expose this ludicrously obvious manipulation scheme
that is destroying a supposedly "free trading market".
One more thing. The lease rates are going back up
again. Could it also be that what we have been saying
for some time is upon us - namely, that the central
banks have planned to reduce their gold lending from
here on in to the end of the year. One month lease
rates are 3.17% today and 6 month rates hit a NEW
HIGH of 2.71%.
Talk about risk! Who wants to borrow $254 gold with
the risk that entails and pay 3.17% to boot?
Gold, silver, and the XAU should rocket in the weeks
to come. Get long, be strong and go WITH the
"gold conspiracy crowd" this time.
All the best,
Bill Murphy
Le Patron
lemetropolecafe.com |
