Hi russ & howe..... you make very valid points. I have no stake in ABX however I do own some MIQ-M which is in the Carlin Trend and not far from the now famous "RAIN MINE".
Below is for information purposes to be viewed at you leisure. Best of Luck
j
Le Metropole members,
MINI MIDAS
I know how many of you are "bummed." And, with good
reason. Free markets just do not behave like gold
has these past four months. The powers that are
capping the gold price and desperate to stop a
serious gold price advance because of the 10,000
tonnes of shorts that are out there, must be
stopped. The manipulation game has to end -
and soon!
For those so distressed that you are thinking of
throwing in the towel: the "collusion crowd" has
lost control of the gold market TWICE in four
months. They will lose control again. Many of the
shares of the small cap gold companies went up 75%
in a few days before retreating one more time.
When the lasting gold price explosion comes, they
can go up 300% to 800%, or more, very very quickly.
It will be worth the wait and that wait might
be right around the corner. In addition, the smaller
golds are performing much better than the seniors.
Their chart patterns and technical conditions are
strengthening - these technical internals will be a
factor that will propel the baby gold shares very
high, very fast, when the shorts PANIC and the
gold move begins in earnest.
BULLET POINTS
*Kudos for the Caf‚'s John Brimelow who nailed
the palladium and platinum market. Palladium for
June delivery rose to $579.80 up $38.90. April
platinum topped $500 per ounce for the first
time in 9 1/2 years and settled at $498.50, up
$24.20 on the day.
Historically, both of those PGM's have led the
way for gold. When the manipulation crowd is
put in their place, that is where the price
of gold is going.
*Barrick Gold: The negative shareholder reaction
to Barrick Gold's press commentary yesterday on
its hedging policies was so extreme that they
just issued a press release:
Toronto, Feb 8 /CNW/ - "Barrick Gold Corporation
announced today that it would not increase its
hedging from the level outlined in its annual
outlook presentation yesterday......
"The significant 9 million ounce reduction in the
committed forward-sale position reflects Barricks's
confidence in the gold price. It is approximately
two-thirds of the entire amount of gold supply
from producer hedging in the world last year, or
two-thirds of all the gold to be sold by the
Bank of England."
This is a significant development. Rarely does a
corporation of the stature of Barrick NEED to come
out with a clarification after a major presentation.
The tone of the press release is very bullish and they
eliminate the possibility of adding to their hedges
in the future.
Shareholder people power has spoken and been heard.
While still early in the Australian trading period,
the price of gold just popped $3.00 in access
trading and the volume is VERY HEAVY for so early
in the evening. A 500 lot offer was just taken
at the market.
The irony is Barrick's forward gold hedge reduction
was rather dramatic. They really did take a big step
in cutting back their forward sale program. When
the price of gold rises above $319 this year, the
writers of the gold calls have to be able to make
delivery. That could cause the gold market to
go bonkers to the upside.
Gold traders responded so poorly to their
announcement because these supposed masters of
PR blew it big time as they led of their press
release with statements like Barrick committed
to hedging followed by a comment that they did not
intend to deliver into their forward sales
like Placer, Normandy and Anglogold are doing.
Then, they touched on their increasing gold mine
production.
Moans were heard all over the place.
One of the worst PR snafus I can ever remember. I
was told Peter Munk was going to be on CNBC this
morning. He ran for the hills and sent Randall Oliphant
into the fray to take the heat. I thought he made a
very good presentation, by the way. The market did not
think so. The shares of Barrick plummeted and
closed today at 17 1/4, down almost 2 full points
from its high on Monday and only about 1 point
off 52 week lows.
Barrick led the XAU into abysmal territory.
Just from the emails I received both yesterday
and today, I know that their shareholders
(the institutional crowd included) went
BERSERK and that is why they were compelled to
release this statement tonight.
They are on a road show to present their case to
investors and needed a fast damage control statement-
thus, this bullish gold press release.
* Comex Exchange Regulators were all over the
floor today. Word to me is that Goldman Sachs
and associates bought heavy into the Placer and
Barrick announcements (as they knew what was coming)
gunning to touch off delta hedged written call
options that had to be covered as strike prices
were breached.
They then sold into those buy stops as panic buying
kicked in. The market then collapsed as they
drove it down.
This morning about 7:30 gold was trading higher,
having been $1.90 higher for some time. Then, all at
the same time, Goldman Sachs, Morgan Stanley, AIG,
and Societe Generale started posting low bids to
create a much softer opening (according to bullion
dealers that watched them do it).
Clear collusion, that even other bullion dealers
are now witnessing.
It will not be long before their A is grass.
Pardon my Caf‚ French.
I received word today that Congressman Jack Metcalf
has joined our camp looking for answers from the
U.S. Treasury about the spreading talk that the gold
market is being manipulated.
The pressure is growing on Secretary Summers to
fess up.
Hang in there!
KEEP THE FAITH
<A HREF="http://www.LeMetropoleCafe.com/scripts/products.cfm">Le Metropole Cafe</A>
All the best,
Bill Murphy
Le Patron
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