I think it is true. Here is another refernece to it.
USAGOLD's
DAILY MARKET REPORT/For Current Quotes Call
1-800-869-5115
11/14/97
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Gold
306.80
+2.20
Silver
5.11
nc
Platinum
388.00
+2.50
MARKET UPDATE (11/18/97) AM-----
OPINION:
The following precludes our usual update:
Chase Manhattan Bank reported that 38,654 ouces of gold left its COMEX certified
warehouse yesterday -- a figure far above what we are accumstomed to seeing on a day
to day basis. This probably has something to do with today's breakout. The Chase
Manhattan draw down follows reports yesterday that Swiss Bank had been greatly
overstating their gold and silver warehouse positions at the COMEX. Some within the
industry are calling for COMEX to audit the certified warehouses which now include
Chase Manhattan, Iron Mountain, Morgan Gauranty and Republic National. Swiss
Bank Corp announced that it would cease operations as a gold & silver COMEX
depository upon revealing that it had overstated its gold position by over 30,000
ounces and its silver position by over 3,000,000 million ounces last Friday. What is left
of their positions was transferred to Republic National. There are conflicting reports
whether or not Swiss Bank's ceasing of depository operations was voluntary or an
action of COMEX. Our bet is on the latter and that there may be more problems of this
nature buried in the figures. The financial press is doing its best to gloss this thing
over as an honest mistake, but insiders tell us that at one point Swiss Bank accused
Republic National of reporting to COMEX less than what it received -- an accusation
Republic angrily denies. Beyond the in-fighting, cover-ups, and rumors is a far deeper
set of problems. The gold price has not been held down by free, or normal, market
action and that is becoming increasingly evident. The short gold position both on
COMEX and originating in London is unprecedented and enormous. Frank Venoroso, a
columnist for Forbes magazine and gold market expert, has put the central bank gold
loan postion at 8000 to 10,000 tons --about one quarter available total central bank
reserves. Right now the open interest on the December contract is at a record level and
some say a squeeze is developing. If Swiss Bank Corp. was under-reporting their
warehouse stocks, what was the reason? Could it be that the bank had/has enormous
short postions it needs to cover at a lower price? Do we have another Nick
Leeson/Sumitomo brewing here, that neither COMEX nor those involved want to make
headlines? What are the other COMEX depository companies up to? And why isn't the
finanial press jumping on this story with both feet? The reports today are strangely
muted on what could be a major scandal at COMEX. We could also be seeing the first
chapters beginning to emerge of the full story on why gold hasn't been able to get out
of its own way in recent years . The story needs to be told and investors need to realize
that what is going on with COMEX warehouse stocks is no small matter and by no
means an honest mistake. If it had been, COMEX would not have thrown Swiss Bank
out on its ear. If anybody involved in these events would like to dispute this
interpretation, we are all ears and will publish your response here. Please e-mail or call. |
