(GATA News) ...Goldman Sachs [rotten smell] shows up... both London and USA...
Subj: Midas - Pandora's Box
Date: 1/3/00 8:56:34 PM EST
From: LePatron@LeMetropoleCafe.com
To: dougak
Le Metropole members,
The James Joyce Table
Discussion du Jour: Gold
Midas du Metropole
"Pandora's Box has been opened!"
... does not matter if the gold market is open or not ... the price action
in this manipulated [gold] market environment is so meaningless.....
... Comex was closed today. Of course, cocoa, sugar, coffee, the bonds,
the S and P's, etc, all traded. Why was it so important to have the gold
market closed? Strum zing!
... How about them bank stocks today. Tankola - while the Nasdaq soared
62 points to another record. The bank index plunged 35 points and made a
new trading low. Does the performance of the bank stocks count anymore
or are they like gold - a barbaric relic of the past - not to be counted
for much anymore?
... For the past several weeks, I have spent some time articulating
the bond/gold divergence. Bond yields have risen all year and collapsed
again today hitting 6.62%. They have completely broken down. In addition,
the dollar was clobbered as the Euro, British Pound, Yen and Swiss France
rallied sharply. The Dollar Index broke par at 99.9 while the Canadian
Dollar and Aussie Dollar hit a new combined recent year high against
the dollar.
Canada and Australia are commodity countries. When their currencies
rally strongly against the dollar, it is often interpreted as a coming
bullish signal for commodity prices.
Why should that be a surprise? Last year crude oil went from $11 to $26,
copper from 65 cents to 86 cents, the livestock markets rocked, base
metals such as aluminum soared, etc. Silver was even up 9%. But gold,
was unchanged for the 3rd consecutive year in a row. With all this new
market volatility, how can it be that the price of gold can't go up and
stay up no matter what happens?
It's fixed.
... [why] the correspondence between Peter Hambro [between] Eddie George
of the Bank of England and the UK Treasury, served at The Matisse Table,
is of such significance.
Pandora's Box has been opened!
GATA has been talking that talk for one year now. As the weeks go by,
our credibility is elevated more and more as serious players in the gold
industry are beginning to realize we have been right all along.
Let us dissect some of the correspondence.....
Most important is what Peter Hambro had to say to the Cafe.....
* Here we have correspondence between, on the one hand,
a genuinely interested and informed gold miner,
and on the other the Governor of the Bank of England
and the Number Two person at the UK Treasury.
* The questions I asked are reasonable and,
in spite of what the Governor says,
do not require any disclosure of confidential client information.
* Instead the UK Authorities steadfastly refuse to answer
any of the detailed points.
* Either they have something to hide or they are failing in their duty
to deal in the open manner with a UK taxpayer that Mr. Blair and his
New Labour government have promised. I hope that your readers will
make up their own minds which."
That is enough, but there is much more.
(Let me stop for a sec and relate to you one more time that I am more
bullish than ever for the prices of gold and silver. I have not sold
one share of my gold and silver shares and will buy more of my favorites
at every moment I can. There is no reason the price of gold should not
roar ahead to $600 this year while silver tops $11. All we have to do
is expose the scam and that is what Peter Hambro and GATA are doing.
Then, we must send the real forces that are holding down the gold price
packing and tell them to get a new life. There is a Zulu.....)
I note the following from Peter Hambro's letter to Eddie George,
Governor of the Bank of England:
"The fact that the senior members at Rothchilds
and the Bank of International Settlements made
note that the announcement by Kuwait concerning
their gold lending was so far outside normal
course of business as to be a concrete signal
that someone was attempting to manipulate
both price and interest rate in the gold market."
Who do you think the Rothchild and BIS people were referring to?
Who has close ties to Kuwait?
In the next sentence, Peter refers to the fact that there were 1800 tonnes
of gold that were subject to call options on the New York Comex at the time.
He then went on to say what everyone in the industry knows that
"...over-the counter levels of option trading
are usually a significant multiple of Comex."
Then he goes on to say,
"This is a large and unstable position in the market.
One has to wonder who the counter-parties are.
Rumour has it that the New York Federal Reserve
is one such and that the consequent delta hedging
has been a tool for the "smoothing" process."
Remarkable commentary from a Pro's Pro in the gold industry.
GATA is not the only one citing reports that it is the N.Y Fed
who is holding down the gold market to for various and sundry reasons.
It gets even better in a letter to Melanie Johnson,
who is the Number Two at the UK Treasury:
"It would be helpful if you were to give us a greater
insight into the Treasury involvement, or otherwise,
with the apparent scheme to alleviate the difficulties
bullion bankers and brokers caused by injudicious
speculation in the precious metals markets by hedge funds
and some of our badly advised mining colleagues.
You have, no doubt, seen the reports concerning Ashanti and Cambior.
Your predecessor, Patricia Hewitt, assured the House of Commons
that there were no large speculative positions that threatened
the market and the UK sale of gold was not in any way connected
with a bail out of the bullion bankers.
It seems, from the fate of the two mining companies mentioned above,
that she may have been poorly advised as they were about the effect
of their large forward, futures and options positions. Can you confirm
that the Government does not receive, or act on, advice on precious metals
from Goldman Sachs/J. Aron, lead advisor and bullion banker to Ashanti?"
There is no putzing around here - this is bottom line material.
Something smells rotten to the core and everywhere Peter Hambro
turns in London and I turn in the U.S., Goldman Sachs shows up.....
Rumor has it that Goldman Sachs is being investigated in London.
It is time they [Goldman Sachs] be investigated in the United States.
I believe that this is one of the most important documents, press reports,
announcements, whatever and ever in the gold market. I believe so because
Peter Hambro has laid the cards out on the table. If what he suspects
is not so, all the UK Government had, or has, to do is answer some questions.
That is all GATA asked in its RollCall open letter to Alan Greenspan
and Lawrence Summers.
What is the big deal - unless, they are hiding the truth that would
reveal a horrific scandal?
This document is that important because these issues will be raised
all over the gold world now. They will become mainstream. HEAT will
intensify on the "colluding crowd." The monthly/supply demand deficit
is running around 150 tonnes per month and the gold loans sit at around
10,000 tonnes.
The shorts are running out of gold supply, players, time and cover.
Martha and the Vandellas - "Nowhere To Run, Nowhere to Hide."
Question: The 1950's song King Creole, did The King record it ?
Reason: French settlers of Louisianna, Cajun food, hot, HEAT.
Gold: The King had the most Golden records of all singers ?
All the best,
Bill Murphy ( Midas )
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 |
