Alex:
After this 300 tonne sale is executed, there stills remains over 8000 tonnes of gold ready and available to be thrown at the market. Rather than complaining, looking for congressional help, etc, the remedy is relatively simple. The gold producers should act jointly, announcing that they no longer will sell gold forward and that they will be looking to covered there forward positions. The elimination of gold hedging, will cause the speculators to cover their short position, and the the entire gold lease program would begin to reel. The entire 8-9 thousand ton overhang in the market may not be enough to cover all of these claims on the available above ground supply of gold. Why do the gold companies not form an alliance, are they being paid off by the bankers, speculators etc. They complain in their annual reports about the low price of gold but continue to play ball with those who have been driving the price down. Their is something fishy in the state of Denmark. That 50,000 raise by GATA would last one half hour in a battle with the central banks, taking on the gold companies would get a lot more mileage on their money. It is time to play hardball, but you have to pick the right adversary. Taking on the central banks is the wrong opponent particularly when they control the gold companies.
Ken |
