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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (41962)	10/4/1999 3:42:00 AM
From: d:oug	Read Replies (1) \| Respond to of 116762

GATA answers the question: Why don't the shorts cover and just go home ? October 3, 1999 - A Midas Special "Field Commanders Report to Supreme Allied Internet Headquarters" Spot gold closed over $300 for the first time in a dog's age... ...It was a chaotic and breathtaking week as Dec. Comex gold hit $329 ... ...This volume and fast move up in gold has left disarray everywhere. For example, Dow Jones reported that ADM Investor Services, Inc., notified its customers that it was unable to fill some of their gold orders this week at the Comex. They were not alone. I am not going to rehash the gold story that I presented to you this summer. For reference, I suggest going into the James Joyce Library and review past Midas commentary. I think many of you new Cafe members will be stunned as to how accurately we nailed what was going on and what should happen... ...it is important to be aware of what the critical fundamentals are in the gold market at work today that are propelling this recent price activity. In essence, they revolve around the supply/demand work of Frank Veneroso of Veneroso Associates. Late this summer, he identified the monthly supply/demand deficit to be running around 160 to 180 tonnes every month. He also believes that the gold loans are greater than 10,000 tonnes, which is more than double what the bullion dealer camp has been fostering. That is why the gold market exploded on the European central banks leasing announcement. These numbers are just too large for the market. The gold price needed to rise to a higher equilibrium price to ration demand, which we told you was surging. That demand should continue to surge. Yes, the East will slow down as "sticker shock" sets in as they are generally scale down buyers, but the West buys on price strength and excitement - so demand should pick up in that part of the world. My price objective has been $400 gold...no reason they cannot be achieved. Frank Veneroso's work reveals that the proper equilibrium price for gold is over $600. Again, I believe he is correct and that is where we are headed. The reason we are not trading there now is that gold has been "orchestrated" lower by certain members of the bullion dealer camp and certain officialdoms. You know where I stand on that one. The question on everyone's mind is can they continue to be as effective as they have been in the past at keeping the price of gold from rising? Will gold now be a "free" market? I cannot answer that, especially with the news I received this week about the N.Y. Fed trying to help out the bullion dealers and the shorts. But, I can say that this market is poised to go sharply higher and it is my opinion that only the U.S. Federal Reserve can stop it from doing so. That is why it is so very important that GATA and others take our findings to Congress. Many of the leaders in Congress opposed the present administration's IMF gold sale proposal. How do you think they would take the news that the N.Y Fed was covertly meddling in the gold market to bail out bullion dealer that were colluding to hold the price down because they are now CAUGHT? It would appear we now have european central banks, most producers and the likes of GATA in one camp with the bullion dealers and the U.S. "officialdom" allied in another camp. Perception is very important for a market. The bullion dealer crowd fed disinformation to the press and the public for a long time to create the illusion that gold was dull, unimportant, going down in price and a relic of the past. Make no mistake about this. This was a collusive effort... ...The gold shorts just hit the wall and did not have the gold supply to stop the buyers that suddenly emerged. The lease rates were telling us all that for some time. They went up 3 to 4 times normal. The bullion dealer camp downplayed that importance. $25 did not matter to them, nor did 6.15% bond yields, nor surging commodity prices, nor the widening of credit spreads. The fix was in - that was all that counted. But all of this does count, the above mentioned fundamentals are still in play. The bullion dealers are now talking about all this gold that is going to come on stream for leasing purposes. What they do not say is: who wants to borrow the stuff? Anyone who borrowed gold for 3 months at $254 this summer, has a $50 loss when he goes to pay back his 3.5% gold loan. If it was a 3 month loan, that is a 20% loss for the 3 months. Annualized that is 80% plus the 3.5%. Such a deal - an 83.5% loan. Any takers? That does not mean the battle from here will be easy. I had reports of the "Hannibal Cannibals" going to producers telling them they HAD to sell forward or risk losing their credit lines. This junior producer was not a happy camper. But the real battle will be the "perception" battle. That is where all of us internet people come into play. We can now fight fire with fire. We can get the truth about the gold market out there... GATA's point was retaining the renowned law firm of Berger & Montague. Our left flank was our telling the internet, press, and Congress about the gold market manipulation and what was really going on. The right flank was to try and get the producers of their butts and do something about this fraud. The plan is working - especially perceptions about the gold market. Our internet crowd has "Field Commanders" that are getting the truth out there and GATA has "Field Commanders" feeding us with first class information about the goings on in the gold market because they want us to succeed. As reported to you, we knew of the "government to government" negotiations and we knew they were going to cut back their leasing. Our "Field Commanders" also inform us of what our adversaries are up to, and they are still up to their annoying propaganda. The obvious question goes begging for an answer. Why don't the shorts cover and just go home? I suggest that they are afraid to. More buying will start setting off naked calls and that could lead to a $100 move up in no time. They know it and now you know it. Therefore, they have to be trying to find some other way out of their predicament... The point of the diamond has penetrated the guts of the "Hannibal Cannibal" balance sheets. The sharp gold move up off 20 year lows has them reeling. The left flank is making solid progress and has them outgunned. More trips to Congress will be scheduled and slowly the press will go our way as they realize the "Hannibals" are now "the emperors with no clothes." The right flank is surging. First, Goldfields and Anglogold went in bidding for the Bank of England gold. Support for GATA has picked up and I have received significant information from South Africa that some of the major producers have united in a formal unwritten agreement to cut back production to further gouge the bullion dealer and hedge fund shorts. This information was confirmed by an unlikely source - one of the Hannibals, AIG. When AIG first heard about GATA, they said "Uh Oh, this is going to cost us a lot of money." Maybe so. But AIG has confirmed that they know producers are cutting back on forward sales as they are scared to death now of the lease rates and they also heard about this formalized, unwritten, producer arrangement. "Hannibal Lecter" and the "Hannibal Cannibal" bullion dealers have now been surrounded by the "enveloping horn." They must flee out of the back end of that horn and cover their shorts. GATA offers them an unconditional, dishonorable surrender, but they get out with their scalps. If they continue with their disinformation program or call in the U.S. Fed even further, we will close the back end of the horn. Gold prices will explode again like they just did this week. Then you can color some of the "Hannibals" good bye. Take a look at this Goldman Sachs stock chart and Friday's action. Does it suggest to you all is well? Could this be just the beginning of a big move down? What will the stocks of the other "Hannibals" do if they do not surrender now and cover their shorts? To the "Hannibals": We are not going to lose this one. Ironically, you... Midas

To: d:oug who wrote (41962)	10/4/1999 4:48:00 AM
From: Zardoz	Read Replies (2) \| Respond to of 116762

If the Bank of England sale didn't convince the world that the gold market was being manipulated, maybe a $60 explosion in the gold price might. The extreme price action in gold should clearly indicate that the market has been artificially suppressed If the Bank of England sale didn't convince the world that gold is a unstable currency, maybe a $60 explosion in the gold price might. The extreme price action in gold should clearly indicate that the market has NOT been artificially suppressed. Proof: A suppressed gold price would not have risen under a 'nothing new' announcements from ECB. "Gold, which sank to a 20 year low of $251.70 an ounce in August amid concern about British bullion sales, began its sharp rally on Monday when 15 European central banks pledged to cap future gold sales during the next five years." A pledge is a declaration of promise. A pledge can easily be broken. But once you ratify a pledge, then you confirm by official sanctions the validation of the promise. In any plutocracy, the self interests of the few are tantamount to the rights of governments. And in any CB regime where the few are promoted to leadership from the ranks of the triumvir of Banks, Government, & Wealth; the best interest of the few dictate to the remaining. The Romans, much like the The US Senate, know this. To become selective in the words they use departs meaning without power. To behold the truth of the spoken word, is to understand the power of the words. By the utterance of the word "pledge" the ECB's have effectively revalued their currency the Euro. But one should look closely as to what has been promised: gold.org The central banks have also agreed not to increase their gold lending arrangements and derivative operations above current levels* for the next five years.* They never even suggested lowering those levels to 1998, 97, 96, 95 levels. Thus, this is a promise with no depth. If we assume that CB selling, leasing, and derivatives transaction have been at an all time high for the 1999 year, then a promise to go no higher becomes a deceition. A falsehood, construction to lead the POG up based solely on ideas, and not based in fundamental or technical reasons. So the triumvir has only create a situation where the benefits of the derivatives and leasing becomes in their favor, and not the investors. The heroic effort and foresight of Bill Murphy is only now beginning to be understood. Bill and his Le Metropole Cafe have absolutely nailed the events that are now unfolding. To give credit to situations of obscurity, without foresight and understanding that nothing is new but perceptions is to play into the hands of the alleged manipulators. For it is the public that has manipulated the spot price higher. And this move came within days of futures expirations. Maybe the ECB's had agreed to be both long futures and attempt to bust hedge funds. This transactions is more hideous then the natural demonterization of gold, and may actually lead to the acceleration of such actions. Indeed this may be a prelude for the replacement of the IMF with a World Central Bank, and thus an one world currency. And a world currency would also make gold of no monetary value. Hutch Go GOLD Go charts.quotewatch.com