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

To: d:oug who wrote (48297)	2/8/2000 4:22:00 AM
From: d:oug	Read Replies (1) \| Respond to of 116764

(GATA) A vintage red wine breathing on the dinner table and several of us... Subj: MINI MIDAS - Today's Action (Monday Feb 7) Date: 2/7/00 9:42:00 PM EST From: LePatron@LeMetropoleCafe.com Le Metropole members, MINI MIDAS Today's action: The Caf‚ information that Barrick Gold would make an announcement today and that it would include prior buybacks was right on the money. Barrick made that announcement and the gold market dropped $8.50. I will do my best to try and sort this out in as simplistic fashion as I can. No matter how you slice it - at the end of the day - this market is explosive. As GATA's Chris Powell says, today's set back was a gift. The market is telegraphing where it wants to go and that is much much higher in price. Markets do not spike sharply higher like they have these past two months for no good reason. This is what Barrick had to say today in a Bloomberg release: "Barrick Gold Corp., the world's No. 4 gold producer, said it reduced the amount of gold it arranged to sell forward by almost half in the fourth quarter, though it remains committed to its hedging strategy. "The Toronto-based company said the amount of gold it sold for delivery later at prearranged prices was reduced to 9.8 million ounces in the fourth quarter from 18.8 million ounces at the end of the third quarter. "Barrick also said it bought call options that cover 100% of its production from March 2000 to 2001." To the great novelist and Caf‚ member, Arthur Hailey: I have a vintage red wine breathing on the dinner table and several of us are toasting you tonite. Congratulations on what you were able to accomplish via your letter to Barrick Gold that received so much world wide attention. A wink and a smile goes with that toast. In addition to Barrick's announcement, Australia's largest gold miner, Normandy Mining Ltd. said today that it had not entered into any new hedging contracts in almost two months. Anglogold announced today that is had been lightening its hedge book during the past four months and would continue to do so. Agnico-Eagle publicly confirmed its policy of not selling any of its future gold production forward. Question: If all these producers were not selling forward and Barrick covered a significant part of its hedge exposure, who was selling gold these past 3 months to keep the gold price below $290? Time and time again, the press said it was producer selling. Midas said nonsense and honestly these announcements prove me right. How often did you hear me say it made no sense for the heavily hedged producers to remain so short and that shareholder pressure would prevail, not the least of which would come from the Ashanti blow up. From the very visible and widely quoted Andy Smith of Mitsui, in a Reuters comment: "We have the shareholders pressure now, people-power against hedging that we did not have in October." Andy, I know you disagree with a great deal of what GATA believes, but part of that people-power pressure came about as a result of the GATA army and some of our tactics such as the surprise fax attack on the big hedgers at the Denver Gold Group Conference in October. The TV commentary said Barrick's announcement was a disappointment. That is why the market went down is what they reported. How so? Few knew they were even going to make an announcement, remember. If a birdie had said last week that Barrick gold was covering half of its hedges in some manner, accompanied by all these other announcements by other major gold producers, almost anyone would have said the price of gold would be streaking for the moon by now. There is only one explanation why gold is not $350 or $400 bid now. Clear as day. Some sector of the United States government and a small clique of bullion dealers will not let it do so as they (or clients they advise) are massively short and that a sharp rise in the gold price would devastate their manipulation game, causing economic ruin to some. The producers are buying, or at least, not selling. The open interest on Comex went up 10,000 contracts yesterday which suggest the specs have come in on the long side. So who is keeping the price of gold from exploding? Who has been selling these past months while the producers buy back their shorts or deliver into their hedges, thereby reducing selling pressure? The lack of producer gold supply pressure is why the least rates sank to the lowest levels in memory these past months. Interestingly, they shot up today, with the one month rate doubling overnite to .85, which is still low. ... producers are covering (or not selling), the European central banks are restricting selling, the specs are going long. Then, as said earlier, it is of the highest probability that certain bullion dealers and a segment of U.S. officialdom, desperate to hold down the gold price, is doing the dirty deed of capping that price. In my opinion, a financial scandal of epic proportions will be revealed in the not too distant future because so many people in the gold industry were made to suffer at the expense of a faction of the U.S. government and a cabal of bullion banks in New York. Long time Caf‚ members: remember "Scandale Gold" written 15 months ago. Little by little that "scandale" is surfacing. All the best, Bill Murphy 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