(GATA) ... the gold market explosion is an accident waiting to happen.
Subj: Midas - Gold Could Trade Up to $600 Per Ounce in a DAY!
Date: 2/9/00 8:49:09 PM EST
From: LePatron@LeMetropoleCafe.com
To: dougak
Le Metropole members,
Midas du Metropole has served commentary at The James Joyce Table.
Gold closed $6.90 higher today, silver 10 cents higher,
while the PGM's continue to moonshot.
The gold market is so unstable and the gold loans are so large
that the price of gold could shoot up to $600 in a DAY.
So few people understand why that could happen.
Don't miss the move. Read all about in The Cafe.
The James Joyce Table
Discussion du Jour: Gold, Commodities, Midas du Metropole
February 9, 2000
Midas Ramble Time
Quite the day.
Barrick's surprise press release.....
This morning on CNBC, one of the women commentators did a very good job
of explaining what was going on today. Amazingly, she noted that it was
"investor and analyst" pressure on Barrick Gold that influenced them to
commit themselves more to the bullish camp. They did so she said, noting
the gold market was moving up nicely, $13.20 at one point.
The close was not a good one - $5.40 off the highs. But, none of that may
matter in this market because gold could open $50 higher on any given day
and it can come out of nowhere as you have heard me say so often.
The gold market is unstable. That is why there is so much volatility all
of a sudden. Specs are buying, producers are covering. Who is selling?
Very simple as you all know. The same forces that have been capping the
gold price for years. For the most part, it is certain bullion dealers
in combination with U.S. officialdom.
... bond development and Summers turnabout has got to hurt the
Secretary's reputation with the financial community. He has credit
market traders doing hoola hoops. One day "this," one day "that,"
one day confirmation of "that," the next day a retraction of "that."
All of this is setting up an explosive gold and silver market.
... the gold market explosion is an accident waiting to happen.
Maybe the catalyst will be the Ashanti hedge book finally blowing up.
In a strange development today.....
When this announcement was made today Reuters reported that Ashanti
representatives in the courtroom were visibly shocked by the decision.
With frightening good reason.....
... The hedge funds like Soros must know this. What if they come in with
a bull market raid and Barrick's calls go in the money? A portion of that
call exposure has been hedged, but not nearly all of it.
As a matter of fact, word to me today was that the bullion dealers sold
the Barrick calls that they wrote to a big option player, who failed to
initially hedge them - meaning he was naked and exposed financially to
gold prices moving higher. The "Hannibal Cannibals" know this and we
heard they bought they gold market early today, causing this option
dealer to come in finally buy and cover part of his exposure.
The "Cannibals" sold him futures on the rally -up to $314 - then drove
the price down again so he would have to sell. It is my understanding
that happened twice today. More collusion by the same slimers.
Of course, the manipulation crowd does not want gold to go above $319 to
$330 because it might not stop until $400 or $500 or $600. Who knows?
Meanwhile back at the ranch, it press reports indicate Ashanti's hedged.....
Just like that!
By the time the court order is vacated.....
The XAU.....
There are still few.....
... No wonder they don't want to buy the gold shares.
... and one can understand why the gold shares are doing so poorly.
THAT WILL CHANGE AND WITH A VENGEANCE. The market cap of.....
When the generalist money managers finally realize they have been.....
... What a kick that is going to be!
A quid pro quo for all our tough times due to the gold ... scam.
... What a pity.
My favorite gold stock..... Boy, are they making an investment.....
Just got off the phone with Frank Veneroso. Soon, he will be coming out
with new gold loan numbers that are ... Frank also says it should surprise
NO ONE if all of a sudden there is a peculiar announcement that will creates
negative gold sentiment - like another "English poodle" Bank of England type
of announcement. If it does come, the effect might be dramatic, but he thinks
very short lived.
That will give further credence of U.S. official sector involvement in
the manipulation of the gold market. Desperate people call for desperate
measures. If that does happen, the calls for a full scale investigation
of into alleged U.S. Treasury - possible Exchange Stabilization Fund -
gold market trading activity will build into a crescendo.
The gold market is becoming more and more unstable. No matter what
happens to the price of gold in the short term, both Frank and I believe
gold is headed for $600 per ounce and it could do so in ONE day.
Seem like a stretch? Check your.....
What an amazing time for the gold market. The producers are reducing
their short positions, gold is spiking higher in robust fashion and
there is little spec excitement. The open interest on Comex is a puny
153,976 contacts. That leaves room for 80,000 contracts of new spec
longs that could enter the picture before the gold open interest would
be a little big for its britches.
A spectacular bullish set up as gold has rallied $25 off its recent lows,
set just weeks ago, and so few players are long.
How many gold companies will blow up when the gold buying panic kicks in?
Cambior is one that is still living a nightmare because of the last one:
Cambior was caught in a vice when gold spiked to $339/oz last October.
The company took a US$33-million hit when it was forced to buy back gold
on the open market. Debt swelled to $212-million and a group of 13 lenders
took control. All options were on the table, including the potential sale
of the company's key asset, the Doyon gold mine in northern Quebec.
The search for a new identity became a funeral wake.
Aur Resources Inc. is bidding for.....
... this once highly regarded gold producer.
... After the Barrick PR fiasco, it is hard for me to imagine Anglo
not coming out with positive remarks regarding their future hedging plans.
Anglogold is at the top of the heap in the industry. The gold industry
needs more and more leadership and positive reinforcement. Anglo can
deliver tomorrow. Let us hope they come through.
To "rap" up tonite, I want to thank so many of you for the email and
faxes that you sent to Barrick protesting their press announcement on
Monday. And, what a spectacular result you helped to effect. Great effort!
I also would like to thank you for the many kind words you sent my way
and to Chris Powell. GATA is about a year old. Right from the beginning
we planned to create this sort of "shareholder revolt." It was laid out
in the "enveloping horn" battle plan fashioned after the notorious South
African, Zulu warrior chieftain, Shaka. The right flank of that
"enveloping horn" was to try and influence the gold companies to support
GATA, to urge them to reduce their hedges and to encourage a shareholder
revolt against those that continued unreasonable forward sale programs.
It is now obvious to all that the tactics of the "right flank" of the
GATA army have been very effective and has the manipulation crowd
bewildered a bit, in modest retreat.
GATA will not let up until they are in full scale retreat and then
surrounded again by the rest of the GATA army.
There were so many wonderful emails, I thought I would share a few with
you. This one is from Navy.....
Midas
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 |
