(GATA) Subj: Midas Special - The Devil Is In The Details
Date: 1/27/00 10:04:35 PM EST
From: LePatron@LeMetropoleCafe.com
Le Metropole members,
A Midas du Metropole "Special" has been served at
The James Joyce Table entitled, "The Devil Is In The Details."
Perhaps of interest:
* Warren Buffet bought silver
* Buffet owns Gillette stock
* Gillette is researching fuel cell technology that will use silver
* Warren Buffet and Bill Gates are friends
* Gates bought Pan Am Silver
* Gates has invested in a company doing research on fuel cell technology
* Comex silver stocks are dwindling and near decade lows
* A big, big buyer has shown up in the silver pits
And then this sent in today:
SOURCE: National Electronics Manufacturing Initiative NEMI Group
Recommends Tin/Silver/Copper Alloy as Industry Standard
for Lead - Free Solder Reflow in Board Assemblies.....
The James Joyce Table
Discussion du Jour: Gold, Commodities, Midas du Metropole
Midas du Metropole
"The Gold Market and Precious Metals Commentary"
January 27, 2000
MIDAS SPECIAL
Alan Greenspan's letter response to Senator Lieberman and GATA has
raised the level of awareness of the manipulation of the gold market.
This is a superb development as it brings us closer to the day when the
orchestrators behind the manipulation will be found out and forced to
run for the hills as they cover their shorts.
The more often we can cite specific examples of how this manipulation
is taking the place, the more we build credibility about our charges.
The more evidence of the orchestration of a capped gold price that is
presented, the harder it is for the naysayers to pooh pooh our assertions
of collusion in the gold market.
The following is an email that I received from "Cynthia."
It is a superb, detailed analysis of aspects of Tuesday's Bank of England
gold auction. There is a saying -"the devil is in the details."
In gold's case, it is the details that will expose the devil.:
Bill,
I'm a great admirer of yours. And I've been watching for some time the
manipulations of the POG. I watched in amazement this morning. I wrote
a summary of my impression on USAgold and Kitco forums. Farfel responded
with even more evidence of collusion. I wonder if this recent action is
worth investigating. I know you're a busy guy, but here you go anyway:
she-gold (01/25/00; 14:57:33MDT - Msg ID:23603)
BOE gold auction news: Fraud
usagold.com
The BOE auction was bullish on POG, and spun to be Bearish.
I hadn't believed there was that much Real manipulation, until today.
They're good. Very good.
If you weren't an.....
On Monday, the POG drifted lower from $288 toward an afternoon close
of about $287. Overnight Monday/Tuesday, the POG inched higher but
stayed between $287 and $288. The London POG morning close was at
its highest in a few days at $287, and by 11:16 GMT it had drifted
even higher to $289/289. Hence the following report:
FOCUS - Gold fixed higher before British bullion auction
06:16 a.m. Jan 25, 2000 Eastern, By Marius Bosch
LONDON, Jan 25 ( Reuters ) - Gold held firm ahead of Britain's fourth
bullion auction which analysts expected to attract reduced interest for
the around 804,000 ounces on offer.
Analysts expected a modest over subscription, with prices then falling
back from current levels.
"My feeling is it's going to be like the third auction,
which is negative but nowhere near as negative as the first,"
Macquarie Equities Ltd analyst Kamal Naqvi told Reuters Television.
At the London morning fix, gold was fixed at $288 a troy ounce up
from Monday's afternoon fix at $287. Spot gold was last quoted at
$288/$289 a troy ounce, up from the New York close at
$287/$287. Gold was quiet in early European precious metals
business with little movement expected ahead of the auction result,
due at 1215 GMT with bids closing at 1130 GMT.
Dealers said the Bank of England auction in November, the third in the
series, was around two times oversubscribed and saw a $20 fall in the
price. The second sale, in September, was eight times oversubscribed,
which led to a rally of around $85. MARKET EXPECTS PREMIUM OVER SPOT.
Virtual Metals Research and Consulting said in a market commentary that
the bullion market would want to see a good premium over the spot price.
"The market will probably want to see a good 40 to 50 cents over spot
plus a respectable subscription ratio. For the dealers this is now a
rather wearisome business which brings them very little gain,"
Virtual Metals said.
Traders Standard Bank London said in a report on their website
( standardbank.com ) , that the outcome of today's
auction clearly held the key to the next major price move.
"If the lowest accepted bid is above $288 it would probably be seen as
positive and lead to a break above the $290 resistance, while a result
below $286 could spark a bout of fund liquidation and penetration of the
$285 support," it said Tuesday's auction is the latest in a series aimed
at cutting the UK's gold holdings by 58 percent to 300 tonnes.
GOLD PRICE EXPECT TO FALL POST AUCTION
Analysts expected prices to fall after the results of the sale are
announced at 1215 GMT ( BOE/GOLD01 ) unless South African miners or
funds bid aggressively.
"There is a possibility the South Africans could buy back into the auction,
as they have in others. If we get a good subscription rate, it could firm,
but resistance above $290 is heavy," Naqvi said.
After many tumultuous months of central bank sales and talk of sales,
gold has returned to the $290 level at which it greeted news last spring
that the U.K. would cut gold reserves to 300 tonnes from 715 and modernise
its portfolio.
This time around, the gold price is seen near these levels, with demand
just above the offer. Low volumes, narrow ranges, flat positioning,
low gold lending rates and only modestly elevated options prices suggest
a quiet sale aftermath.
Gold lending rates are also much lower than before previous auctions.
Lease rates for one-month metal were around 0.37 percent on Tuesday,
compared with 2.5 percent before the November UK sale, 3.6 percent
before the September sale and 2.9 percent before the first British sale
on July 6. Then, was up about 3-4 dollars just before the announcement.
[End.]
Now even if the "official" bids are placed at 11:30 GMT, considerable
discussion and decisions by the bidding parties must be made. Bids drift
in to meet the 11:30 deadline, based on the current POG. But suddenly,
after 11:16 GMT, the POG starts to leap. By 11:30 GMT ( if we are to
believe Reuters ) , the POG is $290/291; only 14 minutes prior
( 11:16 GMT ) it had been $288/290. But remember, Virtual Metals
Research and Consulting has just told us that anything over $288
would be bullish. Considering the recent range of trading, this makes
perfect sense.
The official results are posted. $289 and X4.3 oversubscribed.
To people following the POG, this is extremely bullish. Clearly $289
is outside the recent range of trading, and is a full 80 cents over the
London morning fix of $288. But something conveniently odd has occurred.
"Someone" has pushed to POG up to $290/291 at precisely 11:30 GMT,
when the bids are "officially" placed.
So, to those of us following closely the POG, the BOE results are a relief,
if not encouraging. But those not following gold closely are about to here
quite different spin:
[End.]
Reuters Story - January 25, 2000 07:34
LONDON, Jan 25 ( Reuters ) - Gold eased by $1.25 per ounce to
$289/$289 after the Bank of England's auction on Tuesday.
Immediately before the sale the price had been at $290/$291.
The market's reaction was slow, with no change in prices until 1219 GMT,
after the sale was announced at 1215 GMT.
The approximately 25 tonnes or 803,600 ounces of gold on offer were allotted
in full at a price of $289 an ounce. Gold had fixed on Tuesday morning at
$288 an ounce. By 1225 GMT spot gold was quoted at $289/$290.
[End.]
And from Bloomberg ( note the headline )
U.K. Sells 25 Tons of Gold at Below-Market Price of $289/oz
By Mark Deen
London, Jan. 25 ( Bloomberg ) -- The Bank of England said it sold about
25 metric tons of gold at $289 an ounce in the fourth of a series of
scheduled auctions designed halve the U.K.'s gold reserves by 2004.
The central bank sold 803,600 troy ounces at a price that was 75 cents
an ounce, or 0.3 percent, below the price for immediate delivery in
London at 11:30 a.m. when bidding closed.
The U.K. wants to reduce its gold reserves so it can invest the money
in more profitable assets such as bonds and currencies. Gold climbed to
a two-year high of $340 an ounce on Oct. 5, after 15 European central
banks, including the U.K., agreed to limit sales, sparking a wave of
buying by investors and producers.
Today, gold for immediate delivery rose as much as $4, or 1.4 percent,
to $290 an ounce before the announcement. It last traded at $289 an ounce.
The U.K. central bank said bids were submitted for a total of 3.45 million
ounces, or 107 tons of gold, a bid-to-cover ratio of 4.3.
[End.]
This is what the public reads. This is what will be reported by the
New York Times tomorrow.
Now as we know, impressions are everything. When we follow block trades
on the stock market, we immediately want to know: was it on an uptick or
a downtick. Makes a huge difference. A big block trade on an uptick:
someone wants in so much their willing to pay more than the going price.
A big block trade on a downtick: someone ( BOE ) getting out of what
they perceive to be a losing position. Those are the impressions we
generally have about block trades.
The BOE results are bullish for gold. Period. The POG jumped out of its
trading range between 11:16 GMT and 11:30 GMT to give the impression that
the 25 ton block trade was made on a downtick. Period. The public and
investors have been deceived and gold producers have been scammed, once again.
[End.]
Farfel (01/25/00; 15:09:58MDT - Msg ID:23604)
SHE-GOLD, the market manipulation is worse than you imagine.
Not only were the results of the BOE auction spun in the most negative
manner today by the The Street, but one of the most notable participants
in the gold shorting cartel - LEHMAN HOLDINGS - was prepared this morning
with a list of gold stock DOWNGRADES, from Homestake to Battle Mountain,
just in case market investors might be tempted to celebrate the positive
gold auction results.
Of course, Lehman did manage to UPGRADE one gold company, namely Barrick,
the leader of the gold shorting producers. Any surprise there?
It is amazing how these guys can operate in such a nefarious blatant manner.
But they do and nobody seems willing to stop them.
There are no honest upstanding regulators to regulate the fully
corrupted regulators of America's markets. Therein lies the problem.
And America continues to tumble into a moral toilet, cloaked in a
disguise of "material prosperity."
Thanks
F*
To support Cynthia's objective analysis - here is the commentary
on Wednesday by Mitsui Global Precious Metals:
"Most bizarre. Buying in London Time just running upto the 11.30 cut-off
time for gold bids on the BOE gold auction yesterday saw gold break 290
and touch 290 before the announcement of the results.
There were neutral to mildly bullish in their tone.
The oversubscription was larger than expected at 4.3 times, price at 289,
so well above the AM fixing, and the weighting at just over 50% showed
that the bids were all quite close to the 289 level. However, it bombed
1.5 bucks immediately, but then in a flash was back at just over 290 in
some good two way business. From there, the NY session was quiet to begin
with, but just kept slipping lower, and was not aided by further producer
activity on the auction."
[End.]
I watched this same strange activity. When gold started to fail, I called
up Icarus, the famed commodity broker, and asked to know who was doing all
the selling and knocking the gold price down below $290.
Two minutes later, I got my answer:
"Goldman Sachs, Deutsche Bank and Chase Bank."
Big surprise!!!
Now, let us step back a bit.
This is an excerpt from the document that I sent in July
to Senator Phil Gramm, Chairman of the Senate Banking Committee:
"Since last Fall I have been documenting.....
... the price of gold has collapsed over $36 or almost 15% per cent,
and the sale has ignited a furor all over the world, fostering talk
of conspiracies, etc." [End.]
Well, what a coincidence! It is now 9 months later and the same
bullion banks are still defending $290 gold at the same time.
Goldman Sachs turns up every where we look when it comes to the manipulation
of the gold market.
From that same Gramm document, in which I noted,
the Goldman Sachs/ Bank of England/LTCM lineage of sorts:
*Former Treasury Secretary Robert Rubin, is a former Goldman Sachs CEO.
*Former N.Y. Fed Governor, Ed Corrigan is a senior partner at Goldman Sachs.
*London based senior partner, Gavyn Davies, is Goldman Sach's international
economist and has close ties to Tony Blair.
Davies wife, Susan Nye, is chancellor of the exchequer's office manager.
*Dr Sushil Wadhwani, former Director of Equity Strategy at Goldman Sachs
International (1991-95), sits on the Bank of England's Monetary Policy
Committee. The committee's duties include determining the Bank's objectives
and strategy, ensuring the effective discharge of the Bank's functions and
ensuring the most efficient use of the Bank's resources.
*Jon Corzine former Goldman Sachs, CEO, has close ties to John Meriwether,
chairman of Long Term Capital Management.
* Former Fed vice chairman, David Mullins , was a partner in Long Term
Capital Management, which, of course, was bailed out in part by Goldman Sachs.
It just keeps going on:
This is from a July 8th column in the South African Business Report
by influential South African Columnist, David Gleason:
Given our commitment to free and open markets, you can't condemn a man
for wanting to make a profit. It is the manner in which profits are made
and taken which attract attention. Powerful US investors now believe the
so-called "bullion banks" have "conspired" to drive down the price of
gold and it is now in their interests - because they are said to have
taken on such huge short positions - to keep it down. This is probably
the reason some of the banks - specifically Goldman Sachs - are able to
offer five-year lines of credit to inconsequential North American producers.
The only conclusion to be drawn from lending of this kind is that
Goldman Sachs must be satisfied the risk element in the loans
is virtually zero. How does any bank arrive at that position?
Because it knows or is very confident that it is able to influence
profoundly what might otherwise be an uncertain feature.
[End.]
And on - with excerpts from commentary by Christopher Fildes,
who wrote this for the Spectator in London:
"Put a green baize cloth over the Treasury's parrot, come down to the
House and explain. The Chancellor has yet to say a word to Parliament
about his clearance sale of the nation's gold. Instead, a parrot in his
office has been taught to say 'restructuring' and to go on saying
'prudent'. Now the first of his auctions has, predictably, misfired.
The market followed my advice and chanced its hand with some cheap bids,
and, after the auction, the price of gold carried on sliding. The only
winners are the big international punters who have sold gold short and
can now (as I was saying a month ago) close their positions at Britains
expense. It is time for Gordon Brown to drape his parrot in a green
baize cloth and give the House of Commons some sort of explanation."
"He might usefully model himself on Nigel Lawson who, a dozen years ago,
was conducting a sale of his own. On offer was the state's remaining
shareholding in British Petroleum, priced at * billion, which made it
the world's largest share sale. While this was in progress the markets
in New York and London collapsed, giving the sale's underwriters a bad
bout of heartburn which they mistook for heart-failure. In the end, the
Chancellor could tell the House that he had received his three objectives:
'First and most important, to allow taxpayers to secure the full proceeds
of the sale to which they are entitled; secondly, to ensure that there are
orderly after-markets; thirdly, to make sure that the sale does not add
to present difficulties in World markets. '
Could today's Chancellor make any of these claims?
In the BP debate, Chancellor Lawson rounded on his critics:
"The Labour party is simply the friend of Goldman Sachs.'
Now there's a thing".
[End.]
And on - with these comments from Sir Peter Tapsell (Louth and Horncastle)
in England's House of Commons:
"I am glad to have the opportunity to initiate a debate on the proposed sale
by the Bank of England of more than half of this country's gold reserves.
That decision was announced by the Treasury on 7 May and has been widely
and critically discussed in the financial press, but the Government has been
strangely reluctant to defend it or explain it in any detail to the House."
"I regard the decision to sell 415 of the 715 tonnes of our gold reserves
as a reckless act, which goes against Britain's national interest."
"The sale of that crucial element of the United Kingdom's reserve assets
will weaken our scope to operate independently, reduce our influence in
international financial institutions and diminish the United Kingdom as
a world financial power."
"I shall briefly set out eight of my main reasons for opposing the decision.
Later in my speech, I shall expand on some of those and add a few more.
First, a move such as the one announced on 7 May was always likely to
destabilise the gold price, as Britain is a leading G7 country whose
example is likely to influence other countries and because it was
not expected to sell gold. Market sentiment has become overwhelmingly
negative and the price has collapsed from $287 per fine ounce immediately
before the announcement to $259 at the fix yesterday--a fall of 10 per cent.
That has reduced the value of our gold reserves in a little over a month
by about $650 million from $6.5 billion to $5.85 billion at current prices.
The Chancellor's announcement has so far cost this country's taxpayers over
* million, which is more than the cost to us of the Kosovo war.
The immediate effect has been the loss of * million of our taxpayers'
reserves, and so far the only beneficiaries of this event have been the
foreign finance houses, which have been shorting the gold market.
As I said to my hon. Friend the Member for Rochford and Southend,
East (Sir T. Taylor) in all friendliness, I am not a subscriber
to the conspiracy theory in any aspect of life, so I shall not go
into detail about the conspiracy theories that are widely circulating
in the City about that shorting of the gold market, but it is often said
that some of those famous foreign finance houses have shorted gold to a
huge amount--vastly greater than the tonnage of sales contemplated by the
Bank of England--and that it was therefore vital for them for the gold price
to fall substantially so that they could close their positions and take
huge profits. I do not know whether that is true, although I think that
there is no doubt that several finance houses have been shorting gold
in a very large amount, so I suspect that the financial press will
pursue that point with vigour in the days and weeks to come."
[.End ]
The British financial press: yes.
The American financial press: no.
However, the heat is starting to pick up on Goldman Sachs.
We got word this week that the floor brokers are peeved at the Goldman
Sachs brokers and a couple of others that are always selling rallies
or at key points.
Always!
They are upset because business is leaving the Comex in droves.
[End.]
Jim Riley must be feeling some heat too about the increasing spotlight
on Goldman as it concerns them being the featured player in the rigging
of the gold market. It was very unusual that he be quoted by Reuters on
Jan 26 following the recent Bank of England auction:
"Falling open interest suggest gold futures speculation is evaporating,
helping explain the balanced price response after Tuesday's Bank of England
reserve auction, said the head of the commodities arm of investment giant
Goldman Sachs."
"It is a pure fundamental market of supply and demand. My take is that
with no investor interest, the market is taking BOE and Dutch selling
very well but it can only digest so much in one day." Riley told Reuters."
What a crock Riley!
Demand is at record levels. It is your orchestrated supply that is
unnaturally holding down the price of gold about $300 lower than where
it should be. Your firm is ALWAYS there to knock gold down every time
it gets to a key level that, if broken to the upside, would attract that
investor interest you say is not there. It is not there because the world
now knows you are manipulating the gold market and holding down the price
along with your cohorts.
Who wants to bet in a casino in which the house won't ever let a player win?
Even notorious mega bear, Andy Smith, looked askance at Jim Riley
showing up in print. From his daily commentary this morning:
"The Word: Sightings of Goldman's Jim Riley in the media are as rare
as close encounters with the Loch Ness Monster.
And, often, just as scary.
So yesterday's (impromptu? Almost never) assessment of the gold market
for Reuters, especially the incredibly-shrinking COMEX open interest,
deserves scrutiny (at a safe distance)."
[End.]
Andy Smith went on to say his comments were "opaque at best."
The manipulation crowd is finally feeling the HEAT. In the past two weeks,
we have heard public comments about the gold market from Secretary Summers,
Alan Greenspan and now, Jim Riley. We must keep the pressure on them.
It is beginning to work.
The more commentary, focus and scrutiny - the better.
Here is an email that I received:
... found this on the Kitco Gold Discussion Group Web Site this morning
and thought this may be of help to you in your potential lawsuit concerning
gold price manipulation. I don't know the guy who wrote it. By the way,
my name is T. M. You need to follow the link in the text of the message
below as this guy, Glen, suggests. Here is the message:
[start]
There has been crap around here lately about how Alan Greenspan said that
the Fed does not trade gold.
Well he maybe correct. It is the Treasury that trades gold.
The fact that NO part of the US Gov buys and sells gold on a daily/weekly
basis is a lie. The US Gov. publishes there gold holding on a weekly basis
and that number DOES change. It is listed in Barrons and on the internet.
bog.frb.fed.us
click on one of the dates. you see it listed under Gold stock.
Then go to another date and that number DOES change!!!!
This is factual proof straight from the US Gov that they do trade gold!
[end]
One more:
Bill,
A lurker on GE sent me this after....
... the Lehman families of New York and New Orleans are significant
shareholders("co-owners") of the U.S. Federal Reserve. This perhaps.....
And more feedback from a Cafe member who heard from his Congresswoman:
Bill,
Just received in mail a letter addressed to
Deborah Pryce Congresswoman - Ohio from Alan Greenspan.
She sent my letter to Alan Greenspan regarding gold manipulation and
your information and "Roll Call" questions. In the body of the Federal
Reserve System letter from Greenspan was my name referenced to Deborah
and your Roll Call question responses (same as your posted Greenspan
response).
Now, if all of the other individuals that followed your request to send
letters to their representative received a similar response than it
provides an additional opportunity to respond with the additional
questions regarding the Treasury and the Secretary.
Please provide the specific question/s to me and I will e-mail to Deborah.
You may wish to announce the same to others that received similar letters.
Best regards/Good Job
Bob
Which leads us back to the government and possible motive for possible
complicity with the bullion dealers in this horrific financial scandal
that is hurting so many investors, gold companies, and gold industry
laborers around the world.
Another email from a Cafe member:
An article appeared today's (1/26/00) Investors Business Daily covering
an interview by IBD with former Fed Gov. Preston Martin that, while it
does not implicate the Fed in any way directly, certainly does disclose
that they would very much like the price of gold to remain low and stable
for the purpose of not contributing to inflation.
The article reads as follows:
"IBD: What effect would stable gold prices have on the Fed's Actions?
Martin: There are always gold bugs on the staffs of financial institutions
who feel in almost a religious manner that, if gold prices go up,
then inflation is inevitable. The Fed is no exception.
Gold Prices do have an impact on the psychology.
But the consensus at the Fed, I think, is they are aware of gold prices,
but also pay attention to other indicators such as rates of exchange.
["End.]
That is about it for "The Devil Is In The Details" tonight.
But one last note.
The gold loans for the past 3 years all have been rolled over at $290 or less.
Gold loan supply is being used to hold down the price of gold.
The one month lease rate has collapsed to .35%.
That is virtually an interest free loan.
Good deal? Yes! Great deal? Yes!
But only if the price of gold is not allowed to go above the $290-$295 area.
Then those loans become onerous.
At $350 gold, all those loans rise to the levels loan sharks would charge.
Goldman Sachs and crew is desperate to not let that happen and that is their
motive to rig the gold market and cap the gold price.
Fortunately, they are finally being found out and this play will eventually
blow up on the manipulation crowd. Some of that crowd will not survive the
gold price explosion that surely has to occur to properly ration gold demand
when these "villains" can no longer get the gold supply they need.
$600 gold is coming.
Keep the faith.
Bill Murphy ( Midas )
Chairman, Gold Anti Trust Action (GATA) gata.org
Le Patron, Le Metropole Cafe lemetropolecafe.com
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 |
