(GATA News) Stinko. Is Goldman Sachs the selling agent for the NY Fed ?
The gold market action these past two weeks has been awful...
Who is selling?...
It will not surprise you that some of my associates think the gold price
is being orchestrated down so the bullion dealers and Ashanti types big
shorts can get out... With the Financial Services Authority in England
investigating Goldman Sachs in London over the Ashanti matter, the U.S.
wants the matter to go away without further fanfare... The last thing
they want is to have Goldman Sachs investigated in the U.S. Of course,
that is just what GATA wants as we believe (as do many other well informed
gold market players) that Goldman Sachs is the selling agent for the NY Fed.
From the International Harry Schultz Letter:
"All leading financial advisors & economists are emphatically saying:
no inflation in sight! No recession in sight! In my opinion, they are all
dead wrong. There are none so blind as those who will not see. I predict
an immediate (not vaguely distant) inflationary depression. I further
predicts the financial/socio/politico world will start to spin out of
control on Dec. 24, 1999. No forecast can be "certain" but I rank odds
on this at 75%.
Oil is the giveaway clue...
The market is all aflutter about central bank selling. This is the same
tactic that the bullion dealer and U.S. officialdom crowd always uses
when it wants to talk down the market - remember all the old IMF gold
stories they used to put out every day. Here is a recap of the latest
official sector gold stories. Separating the wheat from the chaff and
what is really going on out there is not an easy assignment:
The Netherlands...
Malaysia...
Russia...
Switzerland...
The western media is controlled in the background by the bullion
dealer crowd. Midas is not the only one objecting to the obvious
orchestration of bearish gold news to the press. From today's
Morning Metal Monitor...
"Gold is called $3.50 lower this morning, as a series of misconstrued,
misreported and mistaken headlines have caused gold to ratchet down....
A Cafe member sent me the following - more from Harry Schultz:
Editor's Note: HSL is written by the world's highest-paid investment
consultant, Chevalier Harry Schultz (Guinness Book of Records-
International Editions: 1981-1997). The HSL was the leading gold
advocate in the early 1970s, when it called the Great Gold Bull market.
Interestingly, HSL is again bullish on gold.
The International Harry Schultz Letter "The premier international
financial, socio, geopolitical & philosophical newsletter"
"Gold & Black Gold Per Harry Schultz
Gold "should" move up in late Dec, due to a likely pre-Y2K stk mkt fear
selloff & a likely US$ price peaking out. Stks-down, $-down normally
equal: gold-up. But gold's supply/demand forces have been both openly &
covertly blocked by the establishment so far this year. They simply
can't afford to allow a free-mkt gold price. The stakes are too high for
them. And "them" hold the levers of power--political, financial, media.
They manipulate not only the gold price but the media to squash any Y2K
fears, thus inhibiting a rush to quality. But gold's chart shows a
bullish downwedge pattern & its correction has almost reached the vital
61.8% retracement number of 280, basis London PM fix. Price should hold
there. If not, odds shift to test the summer low around 253.
The bullion-bank cannibals, who have been shorting gold (with the help
of NY Fed Reserve Bank, & an OK from Greenspan), to cap the price &
prevent a free mkt in gold, are unlikely to want to hold short positions
during the year-end & year-start. BUT while speculators, hedge funds &
private bullion banks may not want to be gold-short over year-end, the
US govt may not mind. It has deep pockets (yours!) & doesn't mind the
risk. It can spend all of your money it desires, to prevent a free gold
mkt. Spitting into the wind doesn't bother govts.
But this is now becoming transparent & abhorrent to a growing number,
so this illegal maneuvering by man & beast will be coming to an end soon.
Either via a Y2K-meltdown of many banks &/or via a legal attack by GATA
(Gold Anti-Trust Assn), who aim to bring into court the anti-trust
violators, the mkt/price-fixers. A war chest is being filled to fund
this. A major gold mine (whose name I haven't permission to quote) threw
its $upport behind GATA last month. Others will follow. U too? Everyone
should. Thanks Hugo for your $upport.
After decades of eating their young, gold producers have discovered
something new: betting on gold, not against it. And gold shareholders
have found their brains, & are demanding gold miners stop selling
forward. When people buy a gold share they want a pure gold play, not a
derivative crap shoot! People are selling Barrick (a derivative cutesy)
& buying Agnico (a pure gold nugget). The charts prove which way the
tide is turning: Barrick down, Agnico up. (Paul Penna is smiling down J)
Another good gold miner is Gold Fields of SoAfr. They disavow hedging,
bought 12.5% of BofE 1st auction gold & big chunk of 2nd. Chairman Chris
Thompson says "Hedges have largely contributed to low gold prices.
It's folly for us all to continue to do so." 3 cheers! GF also listed on
Nasdaq; Symbol: GOLD (catchy name, eh?). Chart says buy. Harmony of
SoAfr is unhedged, disapproves of hedging. Newmont says never again will
it do any hedging. Robt Chapman, Intl Forecaster, says (on
gold-eagle.com): ">From now, producers must reveal their hedges, or be
sued. Unless demanded as a loan condition, producers should have under
12% hedged. Otherwise, they're gambling. Managers who hedge beyond that
should be replaced & legal action brought against them." Amen. HSL
instigated this attack on gold hedging 3 yrs ago, as a lone voice.
Now it's almost mainstream, finally paying off.
Felix Freeman, ScotiaMcLeod analyst, reports "The nature of gold
buying is changing. Wealthier investors are buying large lots, often
US$1-10mil, not for Y2K reasons but to exit equity mkts for capital
preservation. Such buying hasn't been seen in size for 10 yrs."
Big money smells a stk mkt meltdown. Cafe le Metropole reports drug
dealers & money launderers are increasingly switching from $'s to gold
as "gold gives them certainty." There's so much more to tell & not
enough space. Always access gold news twice-wkly from gold-eagle.com &
Tocqueville.com New bull mkts need a Wall of Worry to grow on. Gold
has a big one. Vronsky of gold-eagle.com says "In early 1970's only 1
in 1000 were invested in gold. When gold hit $800, it was 50 per 1000.
Now it's back to 1 in 1000. We predict the new gold bull mkt will
increase that, thanks to the Net, to 100 per 1000." I agree. Buy the
gold dips; they'll become gold chips!"
Harry Schultz has been a staunch GATA supporter for a long time now
and we cannot thank him enough. His new website www.HSLetter.com debuts
December 13. For information on his International Letter. phone Belgium
-32 16 533684 or fax - 32 16 535777. For $3400 this weekend you can have
a one hour consultancy with Harry. That is his fee and he gets it.
Harry mentions "Hugo" above. Hugo Salinas Price is one of Harry's long
time subscribers and Hugo has become a great friend of GATA. As a result
of his generosity, GATA is bringing on a part time staff person after
the first of the year to help us with our interaction with the gold
companies, press, Congress, etc.
Hugo Salinas Price is engaged in a campaign to have Mexico create a
silver-ounce currency. That is articulated at his outstanding web site,
plata.com.mx
Hugo is very well versed and wrote the following email to Dr. Neville
Bennett in Christchurch, New Zealand who served commentary (Why the US
foot drags on free trade) at the Man Ray Table. In addition to being
very well written, it gives me the opportunity to let you know we should
have our Cafe Chat Conference Rooms cooking by the end of this weekend.
You will be able to converse with the other Cafe members about the
commentary that has been served or find out the goings on in various
gold companies, etc., just like Hugo has conversed with Dr. Bennett. I
think you will like the interaction and the opportunity to share
information and ideas with each other -
Subject: root of trade problem
Dec. 7 1999
Dear Dr. Bennett:
I read your article in LeMetropoleCafe.com today,
on stirrings of anti-free trade rhetoric in the U.S.A. - interesting!
I have been trying, with a little success, to get a few people to review
and think about what I have to say on the subject.
I shall try to be brief.
The problem of "unfair" competition from foreign labor and lower
standards for the foreign workplace, will grow. The nature of the
problem has not been identified.
The problem originates in the international monetary system. All the
poorer countries of the world require dollar reserves in their Central
Banks, and must have them in ever increasing amounts.....
... I hope others such as yourself, take a look at what I am saying
and see if my thinking is mistaken. If so, I will correct my point of view.
There is no discussion, that I can find, of this aspect of the
international monetary system: that at the same time that it is set up
to "farm" the world for U.S. financial powers, it must necessarily
disrupt the productive structure of the U.S., with political
repercussions which we are just beginning to see.
If you wish, you may take a look at my website, plata.com.mx
I am engaged in a campaign to have Mexico create a silver-ounce currency.
I have a few articles on the subject treated in this letter, in English,
on the page. End.
The highly regarded Tom McNamara of Oppenheimer had this to say about
the Dutch on Tuesday:
The Phantom Dutchman?
The Dutch may have sold, already, the physical gold...
This is probably why they are not having an auction. The physical has
been sold, so now it is a matter of closing the trade out.
So the announcement has already been discounted, hence, today's rally.
Something to think about.
Regards, Tom McNamara
And rap up from Cafe member and noted newsletter writer Jay Taylor:
There are two questions concerning gold that I think you should ask Cafe
Members for answers to. This might help people to begin to focus on why
a conspiracy against gold has and will continue to take place. Actually,
these were questions that came from Dr. Larry Parks which I intended to
ask Frank Veneroso in my interview that was to be held and then was not,
due to scheduling problems. Dr. Parks suggested that I askThis might
help people to begin to focus on why a conspiracy against gold
1) Why was it necessary for Roosevelt to make owning gold a felony
punishable by a $10,000 fine and 5 years in prison?
2) Why does the IMF prohibit member nations from linking their
currencies to gold? By linking I mean making paper convertible to gold
at some set rate of exchange.
I think these are questions that get to the hart of our problem today.
Gold is real money. It is honest money. It cannot be created out of thin
air as can paper. So the politicians and, more importantly, the bankers
who benefit most from money and credit creation, are fighting like hell
to keep the idea of gold, a superior form of money, out of the minds of
investors. If the price of gold rises and investors see mining the
winning sector on Wall Street day in and day out. Guess what? Investors
would start to gravitate out of the Internet into gold shares and gold
itself. They would then begin to question the validity of asset prices
and hence the dollar and our monetary system itself. So in addition to
the whole issue of bailouts for the crony capitalists, I think there is
this issue of "counterfeit money" creation by the establishment that is
being protected.
Anyway, I think it would be interesting if you posed the question to
Cafe members to see what their response is.
Best regards,
Jay Taylor
Midas
All the best,
Bill Murphy
For new readers, the above mention of GATA is as follows.
Bill Murphy, Chairman, Gold Anti Trust Action (GATA) gata.org
Also, GATA related articles can be obtained at the pay for view site.
Bill Murphy, Le Patron, Le Metropole Cafe lemetropolecafe.com |
