(GATA) Barrick CEO Oliphant blamed GATA for ABX's poor stock performance.
Subj: MINI MIDAS - Gold Price Soars
Date: 2/10/00 9:46:18 PM EST
From: LePatron@LeMetropoleCafe.com
Le Metropole members,
Midas du Metropole has served A MINI MIDAS at The James Joyce Table.
"A lot happening"
February 10, 2000
Mini Midas
So much to say. Action everywhere.
For starters, gold gapped higher, stalled at $316, sold off quickly
and then very steadily rose for the last half of the trading session.
The move up was about as orderly as I have seen as buyers came in on
every little dip.
Early in the day, I received word that a bullion desk was closing down
its operations because of some sort of derivative disaster. The source
is an old pro and is reliable, not one to spread gossip. That does not
mean he is getting the right scoop. When the rumor came back to me a
second time, I sent it out to you after the close.
That wasn't the only hot story out there. The continuing Ashanti saga has
traders wondering whether the Government of Ghana will just nationalize
those assets and stick the bullion dealers with the hedge positions that
are rapidly worsening by the day. The rationale would be that the bullion
dealers were responsible for the blow up and should have to pay the piper.
That may not be in the cards at all. But, Ashanti's written calls with
a 330 strike price are in the picture. A move above $330 would take these
out of the money calls into the money and effect a stampede of buying
that could turn into a buying panic as no one seems to know how the
Ashanti "work out" will be resolved.
It might not only panic the liable bullion dealers, but other shorts
that know what is likely to happen if $330 gold is breached to the upside.
Fireworks time?
Just in - 8 PM CST:
The Ghanian Government Launches Broadside Against Ashanti
Too much to get into now. Some goodies. Their hedge book is under
water to the tune of 570 million dollars with a 270 million dollar
present margin call. Barclays Bank and Chase Bank were going to lend
them 250 million, but pulled out of their offer about 6 weeks ago.
What a mess!
Adding to the bears woes were South Africa's Anglogold Ltd and Western
Areas Ltd. Anglogold announced that it trimmed its hedge book by 10
tonnes in the fourth quarter and that it would "continue to deliver into
its hedge" for the rest of 2000 and reiterated its positive gold price
outlook.
Western Areas Ltd announced that is has closed out its forward sales of
gold for the next two years.
A banner day. Almost. For some inexplicable reason Homestake Mining CEO,
Jack Thompson, took this moment to announce that Homestake, which is
mostly unhedged, "would engage in hedging." What could he be thinking of?
The gold market is responding very positively to all these
reductions of hedging announcements and he goes the other way at exactly
the wrong time. Homestake is known for staying away from hedging and is
popular because of that. Didn't Jack Thompson learn anything from
Randall Oliphant, Barrick CEO, whose Monday mamby pamby press release
did not go far enough for the market about its future hedge plans and
sent the gold price plunging? Barrick had to back peddle and put out
another more positive press release on Tuesday.
Bummer, Jack. Get with the program. 100 years of practically no hedging
and just when the anti-hedging tide is on a roll, your company is going
to roll over. Not good, not good at all.
The Bank of England denied it was going to halt its future gold sales.
Why should they? They need to average down their incredible loser trade
of selling gold and buying euros. The euro has gone down 10 to 15% while
the gold price as soared after they brilliantly sold gold at their
auctions at prices from around $255 to $289. Not good, not good at all.
According to Reuters, The European Union should soon authorize the
European Central Bank to double its paid in capital, ending months of
behind-the-scenes wrangling and smoothing the way for a similar increase
in tits reserves, EU and ECB officials said today.
This could be a very constructive event for the gold market if it means
that the ECB requires the European central banks to shift 747 tonnes of
gold into the ECB. If that happens, the moans of gold bears will be
heard all over as that gold will not be available for future sale or
lending purposes.
There was much action today in the all the markets, most of it gold bullish.
The CRB.....
The oil chart is a beauty.....
Of course, there is no inflation.
The bond auction was a dud and.....
The bank stocks fell again as their.....
The rise in the gold price has been stunning, yet the open interest on
Comex is only 156,964 contracts. There are few spec longs. Not many
players believe this gold rally will amount to anything. An anecdotal
delight for us gold bulls.
The senior North American gold shares are feeling the lack of interest
too. Today was extraordinary. Gold goes up $10 and the XAU could only
manage a .75 gain and finished at 68. 34. Newmont Mining gained 3/4 of a
point, but Barrick Gold could not even close above unchanged and
finished at 18 7/16. During the summer, Newmont and Barrick were trading
at the same price.
I was informed today that Randall Oliphant, Barrick CEO, blamed GATA for
his companies poor stock performance. From the podium at a New York
presentation today, he cited the "conspiracy forces" as the main reason
that Barrick stock is performing so poorly.
First Summers, then Greenspan, then "Hannibal Cannibal" Chase, now
Barrick. All have responded to GATA. We can't be all bad.
More on that soon.
Unusual events late in the day. Right before the gold close, April was
$319 bid. Goldman Sachs knocked it back down to make sure $319 was not
violated to the upside. Then, there were sell imbalances on the senior
North American gold shares and the XAU was hit for over a point going
into the close.
I guess portfolio managers are selling their gold shares to get into the
high tech mania.
One month gold lease rates hit a new low. No takers.
The price of gold should rocket. The sharks know that a bleeding Ashanti
is there for the kill, etc. The Barrick calls go in the money at $319.
The specs have not bought yet. The shorts now know that the producers
are serious about reducing future gold supply. Inflation is on the move.
You know the rest.
Who is selling? The gold market roars unless the increasingly desperate
manipulation crowd enters the scene once again.
Midas
All the best, Bill Murphy
Chairman, Gold Anti Trust Action (GATA) gata.org
Le Patron, Le Metropole Cafe lemetropolecafe.com
The above mention of GATA is as follows.
Bill Murphy, Chairman, Gold Anti Trust Action (GATA) gata.org
Also, GATA related articles can be obtained at the pay for view site.
Bill Murphy, Le Patron, Le Metropole Cafe lemetropolecafe.com |
