I don't have permission from lemetropolecafe.com
to post this, but to me the GATA war is at a point where the
other side will panic and try for one big massive take no
prisoners and crush gold with nuclear and chemical and bio
weapons.
So, pro gold and gold bugs all, read and prepare as things
might get real nasty very soon.
The James Joyce Table
Discussion du Jour: Gold, Commodities, Midas du Metropole
Midas du Metropole
"The Gold Market and Precious Metals Commentary"
Q. Little Bear is in the 'doghouse'. Which table do you think he'd be
under ?
A. Gold, of course. But he is hopeful.
September 28, 1999 - Spot Gold $308.80 up $26.20 - Spot Silver $5.76 up
42 cents
Summary of This Extraordinary Day in the Precious Metals Arena
The predictable is happening - plain and simple. What is always hard to
know is the exact timing of when some event will kick off a chain of
events that will produce market activity that one predicts.
All summer long Midas said:
1. The gold supply/deficit is 150 to 180 tonnes per month - since
producers, on balance, were not selling, scrap supply was drying up, and
central banks were not unloading, it meant borrowed gold was required to
hold down the price. It was creating stress in the system.
2. That stress was evident in the lease rates which shot up from 1% to
4% +. That made it more uncomfortable for producers to sell forward and
for speculators to borrow gold.
3. The gold loans were much bigger than the "disinformation, mainstream
analyst crowd" were telling the world. Our camp said they were at least
double the 4500 tonne number being floated.
4. Demand for gold was soaring. Physical supply was very tight. The
August gold contract on Comex was almost squeezed - which was clear
evidnence of the tightness in the gold market.
5. The market was being held down at unnatural levels by "Hannibal
Cannibals," or, the bullion dealers - led by "Hannibal Lecter," Goldman
Sachs.
6. Hedge funds and certain financial institutions were short hundreds of
tonnes of gold and they had no way out in a pinch.
7. The silver market could explode at any time. My price prediction for
silver before the end of the year had $9.78 since the beginning of the
year. My price projection for gold by year end has always been $400. All
of this can be checked out in previous Midas du Metropole commentary.
There were 3 other tidbits that were put on your plate at the Caf‚:
1. There were serious "government to government" negotiations going on
that revolved around the BOE gold sale. That was the trigger that
produced this recent European Central Bank announcement.
2. European central banks were going to restrict gold lending as the
last half of the century came to an end.
3. Hedge funds were in Switzerland looking to secure physical gold
supply.
The gold price is $309 today. That seems like a big deal - and is,
compared to what we have been served by the "collusion crowd." But, gold
should be trading at $509 not $309. Only the maligned machinations of an
unsavory group of bullion dealers and, most likely, the N.Y. Fed has
kept the price of gold from going to a much higher, natural equilibrium
point.
Today, the prices of gold and silver moved in a fashion that few thought
possible anymore. The reason most everyone thought that way is because
of the $2 rule that the manipulators put in place to control the gold
market and minimize any excitement for its price prospects. That I have
document to you ad nauseum. The negative publicity launched about gold
by the "big money crowd" was unprecedented. They tried to delude the
world that "gold was dead." That adjective may be applied to the gold
shorts soon.
It was clear after the last BOE sale and gold rose $6, that the
"manipulators" were losing control of their operation. When the European
central banks announced they were going to curtail the amount of gold
available for lease over the next five years, it sealed their doom. That
was the supply they needed to hold down the price.
And that is what the gold shorts are: doomed! The big borrowed gold
supply is history. Only a much much higher gold price will slow down
demand to satisfy gold mine and scrap supply.
Gold lease rates were 4.58% to 4.84% today. The implications of these
high lease rates are staggering for both producers and speculators
alike. It does not make much sense to borrow gold. Why do so? The
bearish analysis of the bullion dealer crowd and their crony, Gold
Fields Mineral Services, are now discredited - at least, that is what
many are telling me now.
It is not only gold shorts that have big, big problems. The silver lease
rates are now 5.88% to 7.76%. The one month silver lease rate shot up
about 400% today. In the past when silver lease rates have surged like
this, the price of silver has zoomed.
The one month platinum lease rate is 11.38 %. Want to borrow platinum?
Some deal!
We are going into the end of the millenium - an extraordinary time in
history. Y2k concerns abound. Lending will become more restrictive - not
less. There is no reason to believe that lease rates will return
anywhere near the historic norm for some time - and maybe not for the
next five years. It is a "brand new day."
The dye is cast. The precious metals markets are going uptown, but, as I
said the other day, we have won a battle. We will win the war after a
few more battles.
This is what I mean by that. The shorts are big, egomaniacs, powerful,
ruthless, press controlling and feared by most. In a way, I think they
are pathetic. It was what the little guy in America has railed against
for centuries - the big money bankers. Certainly, William Jennings Bryan
made this case in his famous "Cross of Gold" speech in the U.S.
Congress.
You see, America preaches free markets and freedom of the press; unless,
the big money crowd does not like what you say or what you do. It is
even worse if they take big positions in a trade and it goes against
them. Remember my "Peoples Republic of America," "The United States of
China." That is what happens when the press is told that someone or some
idea is "persona non gratta." In jive talk today - they "dis" you.
I do not want to be a sourpuss on such a joyous day. Quite to the
contrary, I am jubilant for all of the Caf‚ that has been waiting for
days like these for oh so very long. However, it is the war we must win,
not just the battle.
Thus, you must know that when Dec. gold was trading at $329 today,
"Hannibal Lecter" (Goldman Sachs) struck and sold gold with a vengeance.
The gold market dropped a quick $23. For some time I have drawn the
close connection that the Goldman Sachs has with the N.Y. Fed. You must
know that it is 9 PM in Dallas and I just received a phone call from one
of my best sources confirming all that I heard today: "the selling by
Goldman Sachs was from resources made available by the N.Y. Fed."
From two banking sources I heard that the N.Y Fed spread the word that
it knew that long bond/short gold spreads were being unwound and it was
standing guard under the bond market to support it. One of my sources
said at one point the bond market and the gold market were trading in
succinct inverse fashion to each other. RIGHT before the gold market was
hit by Goldman Sachs, the bond market surged. Very conveniently.
At that exact same time, the N.Y Fed "was jawboning dealers not to force
delivery on those that are short metal." A flagrant violation of free
market principles and a sign of how desperate the shorts are - which I
have been howling about for weeks and weeks. This is evidence of all we
have been saying: the gold market has been manipulated and controlled.
This stinks to high heaven and that is why our message must be sent out
to the world. Those guys manipulate the gold market and cause untold
suffering. Then, when they are about to be taken to the cleaners, they
start tinkering with the rules of the game. Their manipulation ways do
not end; they just change to the changing situation to suit their own
ends. Yes, just like Communism - the end justifies the means. THEIR
MEANS
To give you an idea of how desperate they are, I learned the following
from a new impeccable source today. A dealer that knows about all the
"gold flows" has informed me that the following hedge funds are short
the following amounts of gold:
Tiger - 15 million ounces
Tudor - 12 million ounces
Long Term Capital Management - 17.5 million ounces
Moore Capital - 25 million ounces
Victor Neiderhoffer - 10 million ounces (this famous Wall Street
character was thought to have gone under, but I guess he is like a cat
with nine lives. They tell me he is back. Perhaps, his short gold trade
will be his swan song)
That is a lot of gold and these hedge funds have only begun to cover.
There is no way they could all cover tomorrow without driving the gold
price up $75 per oz. Here is some more poop: John Henry was short 8
million ounces, but is now reported to be long 5 million. George Soros
is taking on the shorts or thinking of doing so.
There is too much to talk about here. How about this LTCM! Not only did
this info surface one time today, it surfaced twice. Nesbitt Burns told
its listeners in a conference call today that they had reliable
information that LTCM was short 400 tonnes of gold. This goes back to
the N.Y Fed bailout of Long Term and when the gold market manipulation
started in earnest. Or, at least that is when I caught on to what was
going on.
But, LTCM sent me a notarized affidavit denying they were short gold.
This requires serious investigation, one more time.
This whole gold market manipulation affair is revolting and, in the end,
could become the biggest financial scandal in U.S. history.
Today was glorious. At one point, gold was up $44 and silver approached
$6. Platinum finished the day at $413. The CRB was up 3.54 to finish at
207.97. Where are the deflation boys - explaining how the low price of
gold said all was: oh so well.? Coach, let me in the game. I want to
debate Lawrence "of America" Kudlow who is CNBC's glamour economist.
There is no doubt in my mind that the precious metals are going to soar
in price. But, we must be prepared to deal with our hideous opponents.
Today, I was informed that a major story on the gold market was squashed
by one of the leading financial publications in the world. That is not
gossip, that is fact. Sinister forces are at work.
Because they are so desperate, we must be on the alert for some sort of
weird ploys. You can be sure they are coming. This is a devious lot.
However, no matter what they do, they will lose in the end. Truth and
the natural forces of markets will do them in.
Many of you were concerned that the XAU closed slightly lower today
after its big run. Three points. One, the XAU has been trading light
years ahead of bullion. Two, some of the XAU producers have too many
forward sales in place and three, our protagonists found an ECB official
who "questioned whether this week's gains had risen above levels
supported by Sunday's announcement of a ceiling of bullion sales."
On an upper, it was announced late this afternoon that Bill Gates has
taken a 10.3% stake in Pan American Silver through Cascade Investment
LLC, the investment vehicle of Microsoft Corp. That sort of news can
only add positive sentiment about the future of silver prices and silver
mining companies.
Midas |
