NEWS ALERT - the dots are connecting
Forwarded to me by penpal in Canada financial house last night ...
Now the suggestion that IMF should sell its gold starts to make sense ... there are interested parties looking to BUY GOLD, and HOPEFULLY CHEAP
I wonder what actually is in Fort Knox?
Recommendation, squeeze that short!
Forwarded to me by RBC contact
BREAKING NEWS: GOLDMAN SACHS GETS OUT OF DODGE!
In the April 16 session on the TOCOM GOLDMAN Sachs COVERED a simply gob-smacking 8,302 short contracts to bring their short position to 23,019 contracts. This is the second time in 5 weeks that they have made a massive one day short covering. The last time was on March 6 when they covered 7,878 contracts. This brings their short position to the second lowest since I started recording the daily data on Jan 13, 2006. On that day their net short was just 470 contracts lower at 22,549 contracts. These sudden massive coverings are against a generally rising gold price indicated by trend channel #3 in yellow. This is VERY UNUSUAL; you can see from the graph below that the GS short position correlates almost perfectly with the gold price. As the price rises their short position rises as it falls their short position falls. The only other time where there are massive and rapid reductions in shorts was in the first half of 2006 where gold was rising inexorably to $740. It looks to me that this is another piece of the puzzle which fits with my other analysis techniques that we are in the start of a huge upleg in gold. Goldman Sachs has decided to get out of Dodge!
... and now this ...
SUGGEST WE GET READY TO MOVE IN FOR THE KILL
telegraph.co.uk
Fears over Treasury losing control of gold left in its vaults
By Ambrose Evans-Pritchard
Last Updated: 12:32am BST 17/04/2007
As Gordon Brown prepares for a grilling in the Commons over his fire-sale auction of Britain's gold at the bottom of the market, concern is mounting that the Treasury may have lost control over the small amount still left in its vaults.
Peter Hambro: 'real risk'
Peter Hambro, head of Britain's largest pure gold mining company, said he believed the Bank of England may have leased out its bullion to earn extra yield.
"The real risk is that the Treasury has lent out the remainder of the gold. It is very important to know whether the bank's gold lending is on a secured basis," he said. The concern is that counter-parties could default in a crisis such as the LTCM-Ashanti affair in 1998.
"The whole point of gold is that it's not somebody else's paper currency. It's the stuff that keeps you alive when everything else goes wrong," he said.
Central banks around the world have routinely lent out gold over the years to bullion banks such as Goldman Sachs and JP Morgan. The IMF last year questioned if they had lent out more gold than publicly revealed, a situation that would leave the market a large overhang of "short" positions. The Treasury said last night that it would look into any possible gold loans.
With gold now trading at $690 an ounce, Mr Brown's decision to break ranks with the US, Japan, France, and Germany by selling off 395 tonnes of gold has cost taxpayers more than £2bn.
In a move that astonished dealers, Mr Brown insisted on selling the gold in open auctions. The first sale drove the price down to $254, the low-point of an 18-year slide. There were 17 auctions between July 1999 and March 2002 yielding an average of $274.9 an ounce.
Ross Norman, director of TheBullionDesk.com, said the reason for the sales was to support the fledgling euro. The proceeds were switched into 40pc euros, 40pc dollars, and 20pc yen. "His motives were political, but it was carried out in an incredibly foolish way, just as the market was turning up."
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